Shares of Graco Inc. (GGG - Free Report) have gained notably in the past three months. Solid product offerings, focus on innovation and capacity expansion, adequate liquidity, and rewards to shareholders seem to have boosted sentiments for the stock.
The Minneapolis, MN-based company belongs to the Zacks Manufacturing - General Industrial industry — which comes under the ambit of the Zacks Industrial Products sector. The company currently has $9.9 billion market capitalization and carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, the company’s shares have gained 28.7% compared with the industry’s growth of 12.6%. Notably, the S&P 500 has risen 7.8% and the sector has grown 13% during the same period.
Factors Influencing the Stock
In the past three months, Graco has reported results for second-quarter 2020, with earnings surpassing estimates by 37%. Also, sales in the quarter beat estimates by 12.5%. For 2020, the company kept its financial projections suspended due to the pandemic-related worries.
Notwithstanding the pandemic-stricken environment, the company’s efficient management, a solid customer base and product offerings, and shareholder-friendly policies are expected to continue aiding in the quarters ahead. Additionally, the company’s capacity-expansion efforts — with plans of investing $80 million for the rollout of equipment and machinery in 2020 — are other tailwinds.
Focus on innovation is another trait that has been proving advantageous for Graco over time. In July 2020, the company introduced a line of SaniSpray HP airless sprayers, while unveiled three high-production GrindLazer drum scarifiers, E-Flo iQ adhesive and sealant dispense system, and HydroShield Waterborne system in June.
In addition to the aforementioned factors, reviving manufacturing activities in the United States — raising hopes of a better operating environment for industrial manufacturing companies — might have supported Graco’s price improvement. Notably, the ISM’s Purchasers Manufacturing Index scaled to 56% in August, reflecting four consecutive quarters of growth in manufacturing activities in the country.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $1.57 for 2020 and $1.82 for 2021, marking an increase of 18.9% and 10.3% from the respective 90-day-ago figures. Such an upward revision in earnings estimates is reflective of improving operating conditions for the company.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Graco Inc. (GGG - Free Report) have gained notably in the past three months. Solid product offerings, focus on innovation and capacity expansion, adequate liquidity, and rewards to shareholders seem to have boosted sentiments for the stock.
The Minneapolis, MN-based company belongs to the Zacks Manufacturing - General Industrial industry — which comes under the ambit of the Zacks Industrial Products sector. The company currently has $9.9 billion market capitalization and carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past three months, the company’s shares have gained 28.7% compared with the industry’s growth of 12.6%. Notably, the S&P 500 has risen 7.8% and the sector has grown 13% during the same period.
Factors Influencing the Stock
In the past three months, Graco has reported results for second-quarter 2020, with earnings surpassing estimates by 37%. Also, sales in the quarter beat estimates by 12.5%. For 2020, the company kept its financial projections suspended due to the pandemic-related worries.
Notwithstanding the pandemic-stricken environment, the company’s efficient management, a solid customer base and product offerings, and shareholder-friendly policies are expected to continue aiding in the quarters ahead. Additionally, the company’s capacity-expansion efforts — with plans of investing $80 million for the rollout of equipment and machinery in 2020 — are other tailwinds.
Focus on innovation is another trait that has been proving advantageous for Graco over time. In July 2020, the company introduced a line of SaniSpray HP airless sprayers, while unveiled three high-production GrindLazer drum scarifiers, E-Flo iQ adhesive and sealant dispense system, and HydroShield Waterborne system in June.
In addition to the aforementioned factors, reviving manufacturing activities in the United States — raising hopes of a better operating environment for industrial manufacturing companies — might have supported Graco’s price improvement. Notably, the ISM’s Purchasers Manufacturing Index scaled to 56% in August, reflecting four consecutive quarters of growth in manufacturing activities in the country.
Currently, the Zacks Consensus Estimate for the company’s earnings is pegged at $1.57 for 2020 and $1.82 for 2021, marking an increase of 18.9% and 10.3% from the respective 90-day-ago figures. Such an upward revision in earnings estimates is reflective of improving operating conditions for the company.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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