We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GGG expects low single-digit 2025 revenue growth on Industrial and Expansion Markets strength.
Demand for liquid finishing, sealants, automotive OEM and semiconductor uses is boosting results.
Acquisitions in color solutions and dosing systems expanded GGG's portfolio and raised Q3 sales 6%.
Graco Inc. (GGG - Free Report) is benefiting from strength in the Industrial and Expansion Markets segments. An increase in demand for liquid finishing systems and sealants & adhesives product lines is supporting the Industrial segment’s performance. Also, higher demand for automotive OEM (original equipment manufacturer) and vehicle services bodes well for the segment. Solid momentum in the semiconductor and electric motor product applications businesses, driven by an increasing order rate, is aiding the Expansion Markets segment. Favorable pricing actions also bode well. Driven by strength across its businesses, Graco expects its 2025 revenues to grow in low single-digit from the year-ago level.
The company solidified its product portfolio and leveraged business opportunities through asset additions. In November 2025 GGG acquired Red Devil Equipment Company (Radia), which has been added to its Contractor segment. The acquisition is expected to strengthen the company’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio. In July 2025, Graco acquired Color Service S.r.l. (Color Service), which has been added to its Industrial segment. The addition of Color Service’s expertise in automated dosing systems allows the company to strengthen its powder handling portfolio and expand into new industries such as textiles, rubber, cosmetics, plastics and food. Acquisitions had a contribution of 6% to GGG’s sales in the third quarter of 2025.
GGG’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, Graco paid out dividends worth $137.8 million to its shareholders, reflecting an increase of 6.8% year over year. The company repurchased shares worth $361 million in the first nine months of 2025. In December 2025, GGG hiked its quarterly dividend by 7.3% to 29.5 cents per share.
GGG’s Zacks Rank
In the past three months, this Zacks Rank #3 (Hold) company’s shares gained 3.1% compared with the industry’s 3.6% growth.
Image Source: Zacks Investment Research
However, high housing costs and lower construction projects in North America are affecting the performance of the company’s Contractor segment. Reduced demand in the pro paint and home center channels, due to lower foot traffic and reduced consumer activity, arising from softness in the U.S. housing and remodeling markets, is concerning as well.
High costs pose a threat to the company’s bottom line. In the first nine months of 2025, Graco’s general and administrative expenses increased 9.6% year over year. Also, the company’s cost of sales rose 7.7% year over year in the first nine months due to higher product costs. The metric, as a percentage of net sales, increased 120 basis points year over year.
FLS delivered a trailing four-quarter average earnings surprise of 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 3%.
Helios Technologies, Inc. (HLIO - Free Report) presently sports a Zacks Rank of 1. HLIO delivered a trailing four-quarter average earnings surprise of 16.8%.
In the past 60 days, the consensus estimate for Helios’ 2025 earnings has increased 2.5%.
Watts Water Technologies, Inc. (WTS - Free Report) presently carries a Zacks Rank of 2. WTS delivered a trailing four-quarter average earnings surprise of 10.9%.
In the past 60 days, the consensus estimate for Watts Water’s 2025 earnings has increased 4.2%
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Graco Stock Exhibits Strong Prospects Despite Persisting Headwinds
Key Takeaways
Graco Inc. (GGG - Free Report) is benefiting from strength in the Industrial and Expansion Markets segments. An increase in demand for liquid finishing systems and sealants & adhesives product lines is supporting the Industrial segment’s performance. Also, higher demand for automotive OEM (original equipment manufacturer) and vehicle services bodes well for the segment. Solid momentum in the semiconductor and electric motor product applications businesses, driven by an increasing order rate, is aiding the Expansion Markets segment. Favorable pricing actions also bode well. Driven by strength across its businesses, Graco expects its 2025 revenues to grow in low single-digit from the year-ago level.
The company solidified its product portfolio and leveraged business opportunities through asset additions. In November 2025 GGG acquired Red Devil Equipment Company (Radia), which has been added to its Contractor segment. The acquisition is expected to strengthen the company’s presence in the color solutions space by incorporating Radia’s advanced mixing, shaking and automated material-handling equipment portfolio. In July 2025, Graco acquired Color Service S.r.l. (Color Service), which has been added to its Industrial segment. The addition of Color Service’s expertise in automated dosing systems allows the company to strengthen its powder handling portfolio and expand into new industries such as textiles, rubber, cosmetics, plastics and food. Acquisitions had a contribution of 6% to GGG’s sales in the third quarter of 2025.
GGG’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, Graco paid out dividends worth $137.8 million to its shareholders, reflecting an increase of 6.8% year over year. The company repurchased shares worth $361 million in the first nine months of 2025. In December 2025, GGG hiked its quarterly dividend by 7.3% to 29.5 cents per share.
GGG’s Zacks Rank
In the past three months, this Zacks Rank #3 (Hold) company’s shares gained 3.1% compared with the industry’s 3.6% growth.
Image Source: Zacks Investment Research
However, high housing costs and lower construction projects in North America are affecting the performance of the company’s Contractor segment. Reduced demand in the pro paint and home center channels, due to lower foot traffic and reduced consumer activity, arising from softness in the U.S. housing and remodeling markets, is concerning as well.
High costs pose a threat to the company’s bottom line. In the first nine months of 2025, Graco’s general and administrative expenses increased 9.6% year over year. Also, the company’s cost of sales rose 7.7% year over year in the first nine months due to higher product costs. The metric, as a percentage of net sales, increased 120 basis points year over year.
Stocks to Consider
Some better-ranked companies are discussed below:
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 3%.
Helios Technologies, Inc. (HLIO - Free Report) presently sports a Zacks Rank of 1. HLIO delivered a trailing four-quarter average earnings surprise of 16.8%.
In the past 60 days, the consensus estimate for Helios’ 2025 earnings has increased 2.5%.
Watts Water Technologies, Inc. (WTS - Free Report) presently carries a Zacks Rank of 2. WTS delivered a trailing four-quarter average earnings surprise of 10.9%.
In the past 60 days, the consensus estimate for Watts Water’s 2025 earnings has increased 4.2%