Graco (GGG)
is a pretty special company for a lot of reasons, not the least of
which is its ability to outgrow sometimes challenging industrial markets
through price realizations and innovative product development. While
nothing so far in this reporting season suggests underlying conditions
were easier than expected (the opposite, if anything), Graco managed a
stronger-than-expected quarter by once again executing to its strengths.
While they're very different businesses, stocks like Graco, Illinois Tool Works (ITW), and IDEX (IEX)
put me in a bind when it comes to valuation. Graco is hands down an
excellent company and clearly deserves a premium, but with the shares
already above 18x forward EBITDA, it's difficult to construct a positive
bull case other than "just think of the leverage when the economy turns
back up".
Read the full article:
Graco Pulls A Strong Quarter Out Of A Tough Macro
No comments:
Post a Comment