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Trade-Ideas LLC identified

Graco

(

GGG

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Graco as such a stock due to the following factors:

  • GGG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.6 million.
  • GGG has traded 59,392 shares today.
  • GGG is trading at a new lifetime high.

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More details on GGG:

Graco Inc., together with its subsidiaries, designs, manufactures, and markets equipment to pump, meter, mix, and dispense various fluids and coatings worldwide. The company operates through three segments: Industrial, Process, and Contractor. The stock currently has a dividend yield of 1.6%. GGG has a PE ratio of 14. Currently there are 5 analysts that rate Graco a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Graco has been 395,300 shares per day over the past 30 days. Graco has a market cap of $4.4 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.27 and a short float of 6.9% with 10.08 days to cover. Shares are up 13.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Graco as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 20.0%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.48, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Machinery industry and the overall market, GRACO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 9.2% when compared to the same quarter one year prior, going from $49.04 million to $53.54 million.
  • The gross profit margin for GRACO INC is rather high; currently it is at 56.23%. Regardless of GGG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GGG's net profit margin of 16.44% significantly outperformed against the industry.

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