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Here's Why You Should Hold On to Graco (GGG) Stock for Now
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Graco Inc. (GGG - Free Report) stands to gain from its pricing actions, solid backlog level, a strong customer base and product investments despite supply-chain woes, high labor, logistics and raw material costs.
Graco’s Industrial segment is benefiting from robust product categories such as finishing systems and sealant and adhesive equipment. Solid footing across multiple industries like general industry, aviation and solar also bode well for the segment. Sales growth of lubrication equipment, process pumps and semiconductor pumps, and heaters and fittings are benefiting the Process segment. New product launches and channel expansion initiatives are also aiding the segment.
Graco’s policy of investing in product innovation and capacity expansion should fuel its growth. In 2023, the company anticipates capital expenditures of approximately $200 million, with $130 million for facility expansion projects at its Minnesota, South Dakota, Switzerland and Romania facilities. In 2022, GGG invented products like ES 500 Stencil rig, LineLazer ES 500 electric battery-powered airless striper, et al.
GGG’s measures to reward shareholders through dividends and share buybacks are noteworthy. It paid out dividends of $142.1 million in 2022 and repurchased shares worth $233.4 million in the same period. Also, the quarterly dividend rate was hiked by 11.9% in December 2022.
In light of the abovementioned positives, we believe, investors should hold on to Graco stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 10.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
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Here's Why You Should Hold On to Graco (GGG) Stock for Now
Graco Inc. (GGG - Free Report) stands to gain from its pricing actions, solid backlog level, a strong customer base and product investments despite supply-chain woes, high labor, logistics and raw material costs.
Graco’s Industrial segment is benefiting from robust product categories such as finishing systems and sealant and adhesive equipment. Solid footing across multiple industries like general industry, aviation and solar also bode well for the segment. Sales growth of lubrication equipment, process pumps and semiconductor pumps, and heaters and fittings are benefiting the Process segment. New product launches and channel expansion initiatives are also aiding the segment.
Graco’s policy of investing in product innovation and capacity expansion should fuel its growth. In 2023, the company anticipates capital expenditures of approximately $200 million, with $130 million for facility expansion projects at its Minnesota, South Dakota, Switzerland and Romania facilities. In 2022, GGG invented products like ES 500 Stencil rig, LineLazer ES 500 electric battery-powered airless striper, et al.
GGG’s measures to reward shareholders through dividends and share buybacks are noteworthy. It paid out dividends of $142.1 million in 2022 and repurchased shares worth $233.4 million in the same period. Also, the quarterly dividend rate was hiked by 11.9% in December 2022.
In light of the abovementioned positives, we believe, investors should hold on to Graco stock for now, as suggested by its current Zacks Rank #3 (Hold). In the past six months, the stock has rallied 10.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, Deere & Company’s earnings estimates have increased 8% for fiscal 2023. The stock has rallied 16.3% in the past six months.
Ingersoll Rand Inc. (IR - Free Report) presently carries a Zacks Rank #2 (Buy). IR’s earnings surprise in the last four quarters was 8.5%, on average.
In the past 60 days, Ingersoll Rand’s earnings estimates have increased 3.4% for 2023. The stock has gained 22.1% in the past six months.
Parker-Hannifin Corporation (PH - Free Report) presently has a Zacks Rank of 2. PH’s earnings surprise in the last four quarters was 9.1%, on average.
In the past 60 days, Parker-Hannifin’s earnings estimates have increased 2% for fiscal 2023. The stock has rallied 34.2% in the past six months.