Beyond The Numbers: 4 Analysts Discuss Graco Stock

In the preceding three months, 4 analysts have released ratings for Graco GGG, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $84.0, a high estimate of $93.00, and a low estimate of $79.00. Observing a downward trend, the current average is 1.75% lower than the prior average price target of $85.50.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Graco among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Graco. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Graco compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Graco's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Graco's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Graco analyst ratings.

Unveiling the Story Behind Graco

Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.2 billion in sales in 2023.

Graco: Delving into Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Graco's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -3.79%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Graco's net margin is impressive, surpassing industry averages. With a net margin of 23.54%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Graco's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.96%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.17%, the company showcases effective utilization of assets.

Debt Management: Graco's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.