Graco Unveils New Spraying Technologies, Boosts Productivity

Graco Inc. (NYSE:GGG) recently launched advanced spraying technologies to enhance painters’ work efficiency. Notably, the company came up with UltraMAX II, new Ultra, FinishPro II 595, TexSpray Mark electric airless sprayers along with GMAX and TexSpray HD gas airless sprayers.

Featuring rotating piston rods for a 360-degree wear surface, the latest Endurance VortexTM MaxLife piston pumps on select sprayers offer the longest pump life in the industry. The new BlueLink Job & Sprayer Management System on most of these new electric-powered airless sprayers offers immediate jobsite and sprayer information to contractors. In addition, the BlueLink system provides painters with an option to track live sprayer performance on their phone.

Graco expects that broad-based market demand for its products, coupled with the company's strategic investments will continue driving its revenues. Moreover, for 2019, the company expects the overall construction market to be favorable, which along with its strong new product launch lineup is likely to benefit the Contractor segment. It anticipates achieving mid-single digit organic revenue growth in the year.

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 have 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 9.3% return compared with the industry’s growth of 7.3%.

Stocks to Consider

Some better-ranked stocks from the same space are Atlas Copco AB (OTC:ATLKY) , Dover Corporation (NYSE:DOV) and Roper Technologies, Inc. (NYSE:ROP) . While Atlas Copco sports a Zacks Rank #1 (Strong Buy), Dover and Roper carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Atlas Copco delivered average positive earnings surprise 7.45% in the trailing four quarters.

Dover surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 6.59%.

Roper exceeded estimates in each of the trailing four quarters, the average positive earnings surprise being 4.96%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>