- Graco beat revenue expectations again in the second quarter, but the Contractor segment lagged and the business saw some margin pressures.
- Graco's Industrial and Process markets are still strengthening, but the comps are getting more challenging and the Street has moved on from short-cycle stories.
- Self-help is still in play, with management adding more capacity and automation and looking for new market opportunities for existing products and technologies.
- A company of Graco's quality won't get very cheap very often, but sector rotation can create opportunities; this is a name to watch if short-cycle names continue to lag.
For further details see:
Graco: More Vulnerable To Sector Rotation And Slowing Comps Than End-Market Conditions