Graco Inc. GGG recently unveiled the TexSpray T-Max 6912 airless and air-assisted texture sprayer. This marks the latest step in the company’s commitment to enhance contractors’ work efficiency.
Graco’s latest offering allows contractors to spray on nearly all interior and exterior texture application. Notably, the airless spraying capabilities of the new electric-powered sprayer permit contractors to spray to a maximum of three gallons per minute with a wider spray pattern. On the other hand, the air compressor provides contractors with an easy option to switch to air-assisted mode for spraying heavier coatings.
In addition, its advanced design facilitates quick separation of the hopper from pump sections, providing easy transport option and jobsite storage flexibility.
Graco anticipates gaining from its strategic investments and broad-based market demand for its products. Moreover, for 2019, the company expects the overall construction market to be favorable, which along with its strong new product launch lineup is likely to benefit the Contractor segment.
Moreover, strength in automotive, electronics, industrial and alternative energy markets bodes well for the company's Industrial business. For 2019, Graco anticipates achieving mid-single digit organic revenue growth.
However, increasing costs remain a cause of concern. The company noted that increased tariff rates on raw materials sourced from foreign suppliers have 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 returned 26.3% compared with the industry’s growth of 22.4%.
Stocks to Consider
Some better-ranked stocks from the same space are DXP Enterprises, Inc. DXPE, Tennant Company TNC and Roper Technologies, Inc. ROP. While DXP Enterprises sports a Zacks Rank #1 (Strong Buy), Tennant and Roper carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises exceeded estimates thrice in the trailing four quarters, the average positive earnings surprise being 46.55%.
Tennant surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 48.53%.
Roper exceeded estimates in each of the trailing four quarters, the average positive earnings surprise being 4.96%.
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