DailyIQ
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Sector:IndustrialsAll sectors
Last updated 5 minutes ago

GGG·Graco Inc.

$.
+. (+.%)
After Hours
High
$74.51
Open
$73.25
Market Cap
12.32B
52W High
$95.69
Low
$73.25
P. Close
$74.01
P/E
23.86
52W Low
$72.51
Fwd P/E
21.92
DailyIQ Est.
$91.91
Technical Score (1D)
23
SELL
News Sentiment
36
BEARISH
Wolfe Research has just downgraded Graco (GGG), citing weaker‑than‑expected revenue projections and margin pressure that raise doubts about near‑term earnings growth. The downgrade signals a shift in the firm’s valuation outlook, suggesting that the current price may be over‑valued relative to peers. As a result, short‑term trading activity could tighten, with traders re‑evaluating the upside potential of the stock. The next key event is GGG’s upcoming earnings release, which will provide updated guidance and any new catalysts that could offset the negative sentiment. Analysts will be watching for any signs that revenue momentum is picking up or that cost controls are improving margins. If earnings beat expectations or the company issues a positive outlook, the downgrade could be reversed and trading volatility may ease. Conversely, if the guidance remains muted, the mandate could be reinforced, leading to further downside pressure. Market participants should also monitor any commentary from senior management on supply‑chain constraints or product demand, as these factors directly influence revenue forecasts. Finally, keep an eye on Wolfe Research’s subsequent commentary; a follow‑up upgrade or downgrade will be a clear indicator of the market’s evolving view.
Earnings Summary
Graco Inc. (GGG) is a global manufacturer of fluid handling systems, designing, producing, and marketing equipment that moves, measures, mixes, controls, and dispenses fluids and powders across contractor, industrial, and process segments. The company operates within the specialty industrial machinery space, serving diverse markets from coatings to chemical handling worldwide. In Q1 2025 Graco reported earnings per share of $0.70 versus an estimate of $0.674, while revenue rose to $528.3 million, indicating a modest 2.3 % increase from the prior year and a beat on earnings expectations; however, in Q1 2026 the company posted EPS of $0.66 against an estimate of $0.7507 and revenue of $540.1 million versus an estimate of $566.1 million, reflecting a 2.3 % revenue gain but a 6 % decline in earnings and a miss on guidance. The two most recent quarters show a mixed pattern, with a beat followed by a miss, and the Q2 2026 results are pending, preventing a full assessment of momentum. Historically, Graco has maintained steady revenue growth, with the latest quarter showing a 2.3 % increase, but EPS volatility has emerged, as seen in the recent miss, suggesting that margin pressure may be influencing profitability. Recent analyst commentary highlights a downgrade from Wolfe Research citing weaker‑than‑expected revenue projections and margin concerns, while Argus Research upgraded the target price to $83 after a strong earnings miss and slower revenue growth, underscoring divergent views on the company’s trajectory; the firm’s 39 % ROIC and 86 % cash‑conversion rate point to robust profitability and efficient cash generation, which should bolster investor confidence in the coming days. Investors should watch the forthcoming Q2 2026 earnings release for guidance on revenue growth, gross margin, and capital allocation, as well as any management commentary on supply‑chain constraints or demand softness, which will be key to assessing whether the company can sustain its profitability amid sector headwinds.

EPS

EstBeatMiss
$0.64$0.69$0.73$0.78$0.83Q1'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.81 - -
Q1'26$0.75$0.66-12.1%
Q1'25$0.67$0.70+3.9%

Revenue

EstBeatMiss
$516M$542M$568M$594M$619MQ1'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$607M - -
Q1'26$566M$540M-4.6%
Q1'25 - $528M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

GGG Stock Snapshot

GGG is currently trading at $74.00, giving Graco Inc. a market cap of 12.32B and a P/E ratio of 23.9. Today's range spans $73.25–$74.51, with shares opening at $73.25 and moving down $0.01 (0.0%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 36/100.

Over the past year GGG has traded between $72.51 and $95.69 - the current price is +2.1% off the 52-week low and -22.7% from the high. 17 analysts cover the stock with a Hold consensus and a mean 12-month target of $91.43 (range $84.00–$100.00), implying upside of +23.6%.

GGG scores 23/100 (SELL) and trades at $74.00 - near 52-week lows in the $72.51–$95.69 annual range. Sentiment at 36/100 is bearish. (P/E: 23.9) For a large-cap in Industrials with 12.32B in capitalization, a SELL signal means that sector rotation money leaving Industrials will likely exit through names like this first - the combination of negative technicals and bearish news flow is exactly what systematic sector rotation models identify as underweight candidates.

When a large-cap Industrials name with 12.32B in capitalization prints a SELL signal (23/100) alongside bearish news sentiment (36/100), the risk isn't just price depreciation — it's the loss of institutional sponsorship that makes recovery harder. At $74.00 (near 52-week lows in the $72.51–$95.69 range), the structural support levels are where that sponsorship question gets answered.