GGG - The Going Will Get Tougher But Graco Will Keep Going
- Graco posted strong fourth quarter results and a healthy initial guide for 2022 as industrial and process markets continue to recover.
- Autos and process end-market strength should help offset at least some of the risk of a shorter-cycle industrial slowdown in 2H'22, and an extended recovery isn't out of the cards.
- Capital deployment is a wild card; management would like to do deals, but will remain selective.
- I do have some concerns about further rerating in industrials, but Graco's valuation is looking very tempting for a well-run industrial.
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The Going Will Get Tougher, But Graco Will Keep Going