Graco Inc. (GGG - Free Report) recently launched the latest Contractor PC Airless Spray Gun. Notably, the new Contractor PC gun, carrying the lightest weight of its class, is the most durable contractor-grade paint sprayer gun ever manufactured by the company.
The Contractor PC gun comes up with the industry’s lightest trigger pull and hold force — E-Z Fit adjustable trigger — and user-friendly designed handle. This helps in enhancing the control and comfort of painters, eventually improving productivity. Also, the Spray Gun offers painters an option to customize it to any preferred trigger length along with providing a new three-finger trigger option.
Graco expects that stronger finishing products’ sales, elevated demand for all types of product application services, sturdier project activity, improving home-center channel sales and new growth-based investments will continue driving its revenues. This along with pricing actions and lower corporate taxes are likely to boost the company’s profitability in the quarters ahead.
However, escalating cost of sales has been a major cause of concern for Graco. As a matter of fact, the company noted that increased tariff rates on raw materials sourced from foreign suppliers has been escalating its cost of revenues, of late. Rising costs, if unchecked, will pull down its near-term margins.
Graco currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have yielded 4.1% return against the industry’s decline of 10%.
Stocks to Consider
Some better-ranked stocks from the same space are DXP Enterprises, Inc. (DXPE - Free Report) , Colfax Corporation (CFX - Free Report) and Barnes Group, Inc. (B - Free Report) . While DXP Enterprises sports a Zacks Rank #1 (Strong Buy), Colfax and Barnes Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 112.62%.
Colfax exceeded estimates in each of the trailing four quarters, the average positive earnings surprise being 8.88%.
Barnes Group surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 7.04%.
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