Graco Inc

GGG: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$83.00	Nbkfy	Mkfgclt

Graco Earnings: Growth in Process and Industrial More Than Offset Contractor Slowdown

Krzysztof Smalec

Jul 27, 2023

Wide-moat-rated Graco’s second-quarter revenue of $559.6 million and adjusted EPS of $0.75 both fell short of FactSet consensus expectations ($576 million and $0.80, respectively), sending shares down roughly 8% intraday. We’ve made some puts and takes in our model, but our $75 fair value estimate for Graco remains unchanged. After the pullback, we see the name as fairly valued, with shares now trading in 3-star territory.

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