Stock Price & Analysis

Based on the current market data and recent earnings report, Graco Inc. (GGG) stock is showing weakness with a decline in both revenue and earnings, suggesting a cautious outlook. It may be better to hold or sell GGG stock until the company demonstrates improved financial performance.

Graco Inc. (GGG) is expected to reach a price of $88.00 by the end of 2025, driven by recovery from recent earnings misses and production shifts. The stock may face resistance at $88.97 and support at $83.69, with a potential stabilization as the company mitigates tariff impacts.

The S1 support level for GGG Stock is $83 ,The R1 resistant level for GGG Stock is $87.29.

As of the end of day on 2025-03-17, the price of GGG Stock was $83.8.

The target price for GGG Stock according to analyst rating is 103.00, with the highest price target at 105.00 and the lowest at 99.00. Analysts have a Moderate Buy rating on GGG Stock overall.

The market cap of GGG is $14.1B.

Analysis and Insights

Graco Inc. (GGG) appears to be overvalued based on its current financial metrics and market performance.

Valuation Metrics:

• Price-to-Earnings (P/E) Ratio: GGG's P/E ratio of 30.97 is significantly higher than the industry average, indicating that investors are paying a premium for earnings.
• EV/EBITDA: The EV/EBITDA ratio of 17.92 suggests a higher valuation compared to industry peers, which typically have lower multiples for industrial companies.
• Price-to-Sales (P/S) Ratio: At 6.35, this metric is elevated, indicating that the market is pricing in high growth expectations that may not be sustainable.
• Price-to-Book (P/B) Ratio: The P/B ratio of 6.77 is significantly above the industry average, signaling that the stock may be overpriced relative to its book value.

Market Performance:

• Dividend Yield: The dividend yield of 1.16% is relatively low, suggesting that the stock is not attractive for income-focused investors.
• Recent Earnings: GGG reported weaker-than-expected Q4 adjusted EPS of 64 cents, below the consensus of 76 cents, leading to a stock price decline of nearly 3%.

Conclusion:

Based on the elevated valuation metrics and recent underperformance, GGG appears to be overvalued at current levels. Investors may want to wait for a correction or signs of improved fundamentals before considering a purchase.

Graco Inc. is a manufacturing company. It supplies technology and expertise for the management of fluids and coatings in industrial and commercial applications. It operates through three segments: Contractor, Industrial and Process. Contractor segment offers sprayers that apply paint to walls and other structures, with product models for users ranging from do-it-yourself homeowners to professional contractors. It also manufactures two-component proportioning systems that are used to spray polyurethane foam (spray foam) and polyurea coatings. Industrial segment includes the Industrial and Powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Process segment includes the Process and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids.

Graco Inc. (GGG) could reach a price of $135 by 2030, driven by its strategic shift in production to mitigate tariffs and industry growth in automation. The stock is currently consolidating with mid-range RSI and weak MACD, suggesting moderate growth potential.

GGG has a total of 4000 employees.