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Graco Inc. (GGG) Gains But Lags Market: What You Should Know

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In the latest trading session, Graco Inc. (GGG) closed at $58.80, marking a +1.55% move from the previous day. This change lagged the S&P 500's 1.92% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.12%.

Coming into today, shares of the company had gained 1.72% in the past month. In that same time, the Industrial Products sector lost 5.03%, while the S&P 500 gained 1.54%.

Wall Street will be looking for positivity from Graco Inc. as it approaches its next earnings report date. This is expected to be July 27, 2022. The company is expected to report EPS of $0.67, up 8.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $536.96 million, up 5.88% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.63 per share and revenue of $2.12 billion. These totals would mark changes of +7.79% and +6.61%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Graco Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% lower. Graco Inc. currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Graco Inc. has a Forward P/E ratio of 22 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.76.

We can also see that GGG currently has a PEG ratio of 2.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - General Industrial stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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