Zacks Research Issues Optimistic Forecast for Graco Earnings

Key Points

• Zacks Research raised Graco’s Q3 2026 EPS forecast to $0.81 from $0.80 and projected Q3 2027 EPS of $0.86; full-year consensus EPS is $3.26.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $95 price target, despite Royal Bank of Canada’s “Outperform” upgrade and higher $96 target.
• Graco’s latest quarter beat earnings expectations with $0.91 EPS versus $0.81 expected, while revenue rose 3.3% year over year but fell short of estimates; the company also maintains a $0.295 quarterly dividend yielding about 1.5%.

Graco Inc. (NYSE:GGG - Free Report) - Zacks Research upped their Q3 2026 earnings estimates for Graco in a note issued to investors on Thursday, August 27th. Zacks Research analyst Team now forecasts that the industrial products company will earn $0.81 per share for the quarter, up from their prior estimate of $0.80. The consensus estimate for Graco's current full-year earnings is $3.26 per share. Zacks Research also issued estimates for Graco's Q3 2027 earnings at $0.86 EPS.

A number of other analysts have also issued reports on GGG. Weiss Ratings upgraded Graco from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 4th. Robert W. Baird set a $94.00 price objective on Graco in a report on Friday, July 24th. DA Davidson restated a "neutral" rating and set a $85.00 price objective on shares of Graco in a report on Monday, July 27th. Wolfe Research cut Graco from an "outperform" rating to a "peer perform" rating in a report on Thursday, July 9th. Finally, Royal Bank Of Canada increased their price target on Graco from $92.00 to $96.00 and gave the stock an "outperform" rating in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $95.00.

Graco Stock Performance

Shares of NYSE:GGG opened at $79.67 on Friday. The firm has a market cap of $12.90 billion, a PE ratio of 25.05, a price-to-earnings-growth ratio of 2.45 and a beta of 0.92. The firm's 50 day simple moving average is $78.10 and its 200-day simple moving average is $81.64. Graco has a one year low of $72.51 and a one year high of $95.69.

Graco (NYSE:GGG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $0.91 earnings per share for the quarter, beating analysts' consensus estimates of $0.81 by $0.10. The company had revenue of $590.55 million during the quarter, compared to analyst estimates of $608.06 million. Graco had a net margin of 23.53% and a return on equity of 19.54%. The firm's revenue for the quarter was up 3.3% on a year-over-year basis. During the same quarter last year, the business posted $0.75 EPS.

Graco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 5th. Shareholders of record on Monday, July 20th were given a dividend of $0.295 per share. This represents a $1.18 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Monday, July 20th. Graco's dividend payout ratio (DPR) is 37.11%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in GGG. California State Teachers Retirement System grew its stake in Graco by 6,804.1% in the second quarter. California State Teachers Retirement System now owns 20,492,805 shares of the industrial products company's stock valued at $1,549,461,000 after purchasing an additional 20,195,984 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Graco in the 2nd quarter valued at about $1,396,470,000. State Street Corp boosted its holdings in shares of Graco by 3.2% in the 4th quarter. State Street Corp now owns 7,813,877 shares of the industrial products company's stock valued at $640,503,000 after buying an additional 242,817 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Graco by 5.9% in the 4th quarter. Geode Capital Management LLC now owns 4,652,241 shares of the industrial products company's stock worth $380,642,000 after buying an additional 261,126 shares during the last quarter. Finally, Morgan Stanley raised its stake in shares of Graco by 5.4% during the 4th quarter. Morgan Stanley now owns 4,057,036 shares of the industrial products company's stock worth $332,556,000 after acquiring an additional 206,949 shares in the last quarter. 93.88% of the stock is owned by institutional investors.

About Graco

Graco Inc is a leading manufacturer of fluid handling systems and components, headquartered in Minneapolis, Minnesota. Founded in 1926, the company has built a reputation for innovation in spray finishing, lubrication, and fluid management technologies. Graco's solutions are designed to address the needs of paint and coatings applicators, general industry, and process fluids in a variety of end markets.

The company's product portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment.

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