Graco Stock Sees Impressive Pre-Earnings Gains

Graco is scheduled to report earnings on Jan. 31

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Graco Inc. (NYSE:GGG) is an American manufacturer of fluid-handling systems and products. GGG supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications. Graco designs, manufactures, and markets systems and equipment to move, measure, control, dispense, and spray fluid and powder materials. At this time, Wall Street analysts expect that GGG will deliver earnings of $0.63 per share in the company's upcoming earnings report due out on Jan. 31. At last check, GGG was trading up 0.9% at $76.97.

Graco stock is flat year-over-year, but has managed to tack on 19% since bottoming at a 52-week low of $64.34 hit back in March. However, shares of GGG have already fallen 5% year-to-date and Graco stock is currently down 5% from its all-time high of $81.09 reached at the end of 2021.

Graco also offers a forward dividend of $0.84 and a dividend yield of 1.10%. In addition, the equity’s balance sheet holds $603.83 million in cash and $240.12 million in total debt.

However, Graco stock offers very little opportunity for growth over the coming years due to its high valuation. Graco stock trades at an inflated price-earnings ratio of 30.91 and an elevated price-sales ratio of 7.25. Graco has also generated inconsistent top- and bottom-line growth between fiscal 2018 and fiscal 2020, making GGG a far less attractive investment from a fundamental point of view.

Regardless, there looks to be plenty of room for upgrades. This is per the five of eight covering brokerages that sport a "hold" recommendation. 


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