- Graco had a great quarter, with double-digit organic growth that was well ahead of expectations, stronger operating leverage, and good order growth in Industrial and Contractor.
- The coast isn't exactly clear yet, but industrial end-markets are recovering and there's still some momentum in the residential construction/renovation channel.
- Top-notch manufacturing efficiency and strong product development/market share give Graco pricing power to offset raw material headwinds.
- Graco deserves a premium as a top-tier industrial, but valuations look stretched across the sector and this stock doesn't meet my return hurdle.
For further details see:
Graco Leveraged To Ongoing Economic Improvement, But The Valuation Is Already There