this is a longterm retirement stock. Fluid valves,sprayers and etc. will always be needed.
R
Hello? Is anyone there!? Decent products and the Fed is pouring jet fuel into the construction industry. Hang on.
S
Another great report, but the shares dropped 10% after the last record results, so who knows what it will do this time. Another boring record for any Q1 on earnings and revenues. They always try to damp enthusiasm going forward to make it easier to keep beating the analyst's forecast.
S
FWIW, I am adding GGG under $70 per share. If the economy is going to really take off with everyone getting vaccinated, Graco should do quite well. Seems like the virus will be under control by late spring.
G
How does a company in this market trade at a trailing PE of over 25? This is a cyclical company whose earnings are going to get cut bigtime like they did in the last recession. The real PE is now probably closer to 50.
S
Well, record earnings and revenues for any Q4, but in this market I would expect to see the share price drop a little tomorrow since it was pretty much in line with expectations. I would be a buyer if it drops back to $35 or so. They have their usual forecast of 5% growth for next year. Conference call will be at 11:00 AM Tuesday.
Not sure why we dropped from $50 to $40 recently. Tariffs,weaker house construction, any other thoughts?
S
So, I just copied my message from the Q1 report:
Another good earnings report. Record earnings and revenues along with a positive outlook for the rest of the year.
Y
GGG is down -66.75% to 45.06
S
Graco was mentioned favorably in Barron's this week.
The third company on our list, Graco (GGG), designs and makes industrial equipment to dispense, mix, and measure a range of coatings and fluids used for sealing cartons, keeping pipelines from corroding, and staining wood. Many are replaced frequently, which contributes to a steady free cash flow. Graco has used that free cash, up 31% last year, to develop products and push into new markets profitably. That’s helped to diversify its sources of free cash flow and keeps the stock attractive, says Christopher Bonavico, co-manager of the Jackson Square SMID-Cap Growth fund (DCGTX). Graco’s net debt to Ebitda sits at just 0.4, as it builds cash and avoids acquisitions in a frothy market.
S
Nice. 3 for 1 split and raise the dividend 10%. Had been expecting that for a while.
V
Big firm news yesterday, GGG reported its detailed performance in the past year. The earnings reported by a firm often differ from its cash flows. This distinction, referred to as "accruals", speaks to the firm’s estimation of profits not yet received. see http://www.financial-education-hub.com/1/GGG. Nevertheless, the estimation is not perfect. For example, managers may abuse accruals to adjust earnings, resulting in low future profits. This suggests that a firm is likely to perform poorly in the coming years as compared to firms that have the same reported earnings but lower accruals.
S
Another good earnings report. Record earnings and revenues along with a positive outlook for the rest of the year.
https://finance.yahoo.com/news/graco-reports-record-sales-operating-211700335.html
https://finance.yahoo.com/news/graco-reports-record-quarterly-sales-211700774.html
Another good earnings report. Record earnings and revenues along with a positive outlook for the rest of the year.
The third company on our list, Graco (GGG), designs and makes industrial equipment to dispense, mix, and measure a range of coatings and fluids used for sealing cartons, keeping pipelines from corroding, and staining wood. Many are replaced frequently, which contributes to a steady free cash flow. Graco has used that free cash, up 31% last year, to develop products and push into new markets profitably. That’s helped to diversify its sources of free cash flow and keeps the stock attractive, says Christopher Bonavico, co-manager of the Jackson Square SMID-Cap Growth fund (DCGTX). Graco’s net debt to Ebitda sits at just 0.4, as it builds cash and avoids acquisitions in a frothy market.
https://finance.yahoo.com/news/graco-reports-record-sales-operating-201000765.html
https://investors.graco.com/news-releases/news-release-details/graco-announces-new-voltex-dynamic-mix-valve