Entering text into the input field will update the search result below

Graco: 2 Tales

May 27, 2023 9:55 PM ETGraco Inc. (GGG)1 Comment
Daniel Schönberger profile picture
Daniel Schönberger


  • Graco could beat expectations and reported solid top and bottom-line growth in Q1/23.
  • And GGG has a wide economic moat around its business leading to stability and consistency over time.
  • But the economy is heading for a recession, and a declining housing market is a challenge for Graco.
  • GGG stock is also not trading for cheap valuation multiples.

Baustelle bei Sonnenuntergang

goncharovaia/iStock via Getty Images

When talking about Graco (NYSE:GGG), we can tell two different stories. On the one side, we can tell the story of good quarterly results, a great business with a wide economic moat and ambitious long-term growth targets. On

This article was written by

Daniel Schönberger profile picture
My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.I also write about wide economic moats in my Substack: https://stockmarket101.substack.comI also write about investing, economy and similar topics on Medium: https://medium.com/@danielschonberger

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (1)

Good overview of the current situation. One concern I have for many companies right now is whether they can continue to raise prices to maintain margins. If the economy does weaken will they lose this ability? I think it will take a recession to get Graco back to $56, but it's possible. I sold about 1/3 of my position around $77.50 and will add back around $70 unless it really looks like we are heading into a recession. Long term, GGG has been my best investment. My average cost on current shares is under $8.00, so you can tell I have owned it for quite some time.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.