Graco (GGG) Could Be 12% Undervalued Following Strong Q2 Earnings

Simply Wall St.08-04

Graco (GGG) shares were in focus after the company reported second quarter 2026 earnings, with year over year increases in sales, net income, and earnings per share from continuing operations. See our...

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See our...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-ggg/graco/news/graco-ggg-could-be-12-undervalued-following-strong-q2-earnin\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Graco (GGG) Could Be 12% Undervalued Following Strong Q2 Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGraco (GGG) Could Be 12% Undervalued Following Strong Q2 Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-04 07:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-ggg/graco/news/graco-ggg-could-be-12-undervalued-following-strong-q2-earnin><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Graco (GGG) shares were in focus after the company reported second quarter 2026 earnings, with year over year increases in sales, net income, and earnings per share from continuing operations. See our...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-ggg/graco/news/graco-ggg-could-be-12-undervalued-following-strong-q2-earnin\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GGG","symbol_name":"固瑞克","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-ggg/graco/news/graco-ggg-could-be-12-undervalued-following-strong-q2-earnin","article_id":"2656588438","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3072000-choice1-main-header/1585186775716"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-ggg/graco/news/graco-ggg-could-be-12-undervalued-following-strong-q2-earnin","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2656588438","pubTimestamp":1785799836,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Graco (GGG) shares were in focus after the company reported second quarter 2026 earnings, with year over year increases in sales, net income, and earnings per share from continuing operations.\nSee our latest analysis for Graco.\nThe latest earnings announcement and recent buyback activity appear to be setting the tone for Graco’s share price, which closed at US$79.38 after a 30 day share price return of 6.09%. The 1 year total shareholder return is down 2.51%, suggesting shorter term momentum...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GGG":"固瑞克"},"translate_title":"Graco (GGG) 第二季度盈利强劲后估值可能被低估 12%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GGG":1.5},"content_text":"Graco (GGG) shares were in focus after the company reported second quarter 2026 earnings, with year over year increases in sales, net income, and earnings per share from continuing operations. See our latest analysis for Graco. The latest earnings announcement and recent buyback activity appear to be setting the tone for Graco’s share price, which closed at US$79.38 after a 30 day share price return of 6.09%. The 1 year total shareholder return is down 2.51%, suggesting shorter term momentum has picked up even as longer term returns remain more muted. If Graco’s recent move has you thinking about where else capital equipment trends might show up in markets, it could be worth scanning 36 robotics and automation stocks Graco’s recent earnings and buyback activity point to a solid, profitable business with global reach. After the latest share price move, the real question is how that quality lines up with what you are being asked to pay. AdvertisementMost Popular Narrative: 11.8% Undervalued Graco’s most followed narrative points to a fair value of $90 per share, which sits above the latest close at $79.38 and frames the stock as modestly undervalued on that basis.  Graco is focused on increasing its market share by launching new products in the Contractor segment over the next few quarters. This is expected to drive revenue growth as new products gain traction. The strategic decision to maintain a strong U.S. manufacturing footprint may give Graco an advantage over competitors who manufacture offshore, especially in light of ongoing trade tensions and tariffs. This may potentially improve net margins due to cost control and pricing power.  Read the complete narrative. Want to see why this narrative still supports a higher fair value for Graco even with slower growth than the wider market? The core of the story is steady earnings expansion, firmer margins, and a valuation multiple that assumes investors will keep paying up for that quality. Curious which specific revenue and profit assumptions have been baked into that target and how long they are modeled to run? The full narrative lays out those numbers in detail. Result: Fair Value of $90 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Graco’s story could be tested if tariff or trade policy changes lift costs, or if weaker contractor segment margins limit the earnings profile that analysts expect. Find out about the key risks to this Graco narrative. Another View on Graco’s Valuation While the most popular Graco narrative leans on future earnings and a fair value of $90, the current P/E of 24.1x tells a slightly tighter story. It sits below the US Machinery industry at 27.3x and below peer average at 27.6x, yet above a fair ratio of 22.7x. That mix of relative value and a premium to the fair ratio leaves you weighing whether the market is pricing quality or adding extra valuation risk. To see how the current multiple stacks up in more detail, including how it compares across peers and the fair ratio the market could move towards, See what the numbers say about this price — find out in our valuation breakdown. NYSE:GGG P/E Ratio as at Aug 2026Next Steps Overall, the tone around Graco is cautiously positive, which means timing and your own research really matter. If you want to see what optimistic investors are focusing on right now, take a closer look at the 4 key rewards. Looking for more investment ideas beyond Graco? If Graco has sharpened your interest, do not stop here. Use the Simply Wall Street Screener to uncover other opportunities that could suit your portfolio and risk profile.  Target sturdier portfolios by checking companies that appear resilient on quality checks with the 81 resilient stocks with low risk scores Pursue compelling valuation stories by scanning the 55 high quality undervalued stocks that may align better with your return and risk expectations. Hunt for less crowded opportunities by reviewing the screener containing 19 high quality undiscovered gems before other investors start paying closer attention.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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