Graco: Good Growth Prospects At A Reasonable Valuation

Dec. 19, 2022 3:29 PM ETGraco Inc. (GGG) StockGGG
GS Analytics
3.23K Followers

Summary

  • The company’s revenue should benefit from the healthy demand in its end markets, strong order backlog levels, and pricing actions.
  • The margins should benefit from stabilization in input cost pressures, pricing actions, and higher margin business mix.
  • Valuation is reasonable.

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Investment Thesis

Graco Inc. (NYSE:GGG) is experiencing healthy demand across its end markets, which is benefiting its order book. The tailwinds in the non-residential, transportation, and semiconductor end markets should help offset the weakening demand in the residential market. The company has a

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is co-authored by Ashish S. and Sanket B.

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