Expert Outlook: Graco Through The Eyes Of 4 Analysts

Analysts' ratings for Graco GGG over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $85.0, a high estimate of $96.00, and a low estimate of $79.00. Observing a downward trend, the current average is 2.02% lower than the prior average price target of $86.75.

Interpreting Analyst Ratings: A Closer Look

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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Graco. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Graco compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Graco's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Graco's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Graco analyst ratings.

Discovering Graco: A Closer Look

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.

Unraveling the Financial Story of Graco

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Graco's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -1.14%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 24.04%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Graco's ROE excels beyond industry benchmarks, reaching 5.59%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Graco's ROA excels beyond industry benchmarks, reaching 4.69%. This signifies efficient management of assets and strong financial health.

Debt Management: Graco's debt-to-equity ratio is below the industry average. With a ratio of 0.02, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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