Graco Unveils Contractor PC Gun, Boosts User Productivity

Graco Inc. (NYSE:GGG) recently launched the latest Contractor PC Airless Spray Gun. Notably, the new Contractor PC gun, carrying the lightest weight of its class, is the most durable contractor-grade paint sprayer gun ever manufactured by the company.

The Contractor PC gun comes up with the industry’s lightest trigger pull and hold force — E-Z Fit adjustable trigger — and user-friendly designed handle. This helps in enhancing the control and comfort of painters, eventually improving productivity. Also, the Spray Gun offers painters an option to customize it to any preferred trigger length along with providing a new three-finger trigger option.

Graco expects that stronger finishing products’ sales, elevated demand for all types of product application services, sturdier project activity, improving home-center channel sales and new growth-based investments will continue driving its revenues. This along with pricing actions and lower corporate taxes are likely to boost the company’s profitability in the quarters ahead.

However, escalating cost of sales has been a major cause of concern for Graco. As a matter of fact, the company noted that increased tariff rates on raw materials sourced from foreign suppliers has been escalating its cost of revenues, of late. Rising costs, if unchecked, will pull down its near-term margins.

Graco currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have yielded 4.1% return against the industry’s decline of 10%.

Stocks to Consider

Some better-ranked stocks from the same space are DXP Enterprises, Inc. (NASDAQ:DXPE) , Colfax Corporation (NYSE:CFX) and Barnes Group, Inc. (NYSE:B) . While DXP Enterprises sports a Zacks Rank #1 (Strong Buy), Colfax and Barnes Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 112.62%.

Colfax exceeded estimates in each of the trailing four quarters, the average positive earnings surprise being 8.88%.

Barnes Group surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 7.04%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>