Graco (GGG) is a pretty special company for a lot of reasons, not the least of which is its ability to outgrow sometimes challenging industrial markets through price realizations and innovative product development. While nothing so far in this reporting season suggests underlying conditions were easier than expected (the opposite, if anything), Graco managed a stronger-than-expected quarter by once again executing to its strengths.
While they're very different businesses, stocks like Graco, Illinois Tool Works (ITW), and IDEX (IEX) put me in a bind when it comes to valuation.