Zacks Research Brokers Increase Earnings Estimates for Graco

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Graco to $0.76 from $0.75, and forecast EPS of $0.90 for Q2 2027 and $0.85 for Q3 2027.
• Graco’s latest quarterly results fell short of expectations: EPS was $0.81 versus $0.83 consensus, and revenue was $586.4 million versus $590.2 million. Revenue nevertheless grew 7.9% year over year.
• Analyst sentiment is mixed, with MarketBeat reporting a consensus Hold rating and an $87.40 price target; several analysts recently cut their targets.

Graco Inc. (NYSE:GGG - Free Report) - Stock analysts at Zacks Research upped their Q1 2027 earnings estimates for shares of Graco in a research report issued to clients and investors on Thursday, November 12th. Zacks Research analyst Team now forecasts that the industrial products company will earn $0.76 per share for the quarter, up from their previous estimate of $0.75. The consensus estimate for Graco's current full-year earnings is $3.20 per share. Zacks Research also issued estimates for Graco's Q2 2027 earnings at $0.90 EPS, Q3 2027 earnings at $0.85 EPS, Q2 2028 earnings at $0.89 EPS and Q3 2028 earnings at $0.87 EPS.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Graco in a report on Monday, November 2nd. BNP Paribas Exane lowered their price objective on Graco from $95.00 to $85.00 and set an "outperform" rating on the stock in a research note on Friday, October 23rd. Robert W. Baird set a $80.00 target price on Graco in a report on Friday, October 23rd. DA Davidson restated a "neutral" rating and issued a $85.00 target price on shares of Graco in a report on Monday, July 27th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $82.00 target price (down from $95.00) on shares of Graco in a research note on Friday, October 23rd. Three investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $87.40.

Graco Trading Down 0.7%

Shares of Graco stock opened at $72.44 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.12 and a quick ratio of 1.24. The stock's 50 day simple moving average is $75.20 and its 200-day simple moving average is $80.31. The stock has a market cap of $11.62 billion, a P/E ratio of 23.29, a P/E/G ratio of 2.28 and a beta of 0.89. Graco has a 1-year low of $65.96 and a 1-year high of $95.69.

Graco (NYSE:GGG - Get Free Report) last released its earnings results on Wednesday, October 21st. The industrial products company reported $0.81 earnings per share for the quarter, missing analysts' consensus estimates of $0.83 by ($0.02). Graco had a return on equity of 20.13% and a net margin of 22.40%. The business had revenue of $586.39 million during the quarter, compared to analysts' expectations of $590.17 million. During the same period last year, the business earned $0.73 earnings per share. The company's revenue for the quarter was up 7.9% compared to the same quarter last year.

Graco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 4th. Investors of record on Monday, October 19th were issued a $0.2950 dividend. The ex-dividend date was Monday, October 19th. This represents a $1.18 dividend on an annualized basis and a yield of 1.6%. Graco's dividend payout ratio is currently 37.94%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Graco during the second quarter valued at about $1,396,470,000. Caisse de depot et placement du Quebec purchased a new position in shares of Graco during the 2nd quarter worth approximately $141,667,000. Hsbc Holdings PLC purchased a new position in shares of Graco during the 2nd quarter worth approximately $100,157,000. Bank of New York Mellon Corp acquired a new stake in Graco in the 2nd quarter valued at approximately $97,625,000. Finally, Port Capital LLC acquired a new stake in Graco in the 2nd quarter valued at approximately $66,974,000. 93.88% of the stock is currently owned by hedge funds and other institutional investors.

About Graco

Graco Inc. designs, manufactures and markets equipment used to move, measure, control, dispense and spray fluid and coating materials. Its products include pumps, meters, fluid-handling systems and spray equipment used with paints, coatings, sealants, lubricants and other materials. The company serves customers in industrial and process markets, as well as contractors working in areas such as painting, building maintenance and surface preparation. Graco sells its products worldwide through a network that includes distributors and direct sales.

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