Graco Inc. GGG launched three new high-production GrindLazer drum scarifiers. The newly added products under the company’s scarifiers product portfolio are DC1520 E, DC1525 P and DC1538 G. Notably, its share price decreased 1.2% yesterday, eventually closing the trading session at $47.42.
The company’s self-propelled GrindLazer DC15 DCS drum scarifiers facilitate performing heavy-duty tasks like grooving, leveling, inlay, scarifying and stripping coatings. Suitable to be paired with various PCD, diamond and carbide cutters for almost all applications, GrindLazer scarifiers help to remove a path up to 16 inches wide.
Notably, the solution features the company’s latest DCS depth control system, which allows its users to adjust the position of the cutter as per their requirements, with the help of a button. This makes the product ideal for use, particularly in precise removal tasks like inlay, leveling or grooving.
The launch is in sync with the company’s policy of investing in product innovation. In June 2020, it launched the E-Flo iQ adhesive and sealant dispense system. Developed to boost efficiency in manufacturing processes across several industries, the single-component system also enables manufacturers in reducing costs of operations. Also, in the same month, the company introduced the HydroShield Waterborne System to help manufacturers in simplifying waterborne material-spraying tasks.
Apart from this, in March 2020, it unveiled G-Mini compact lubrication pump to complement the existing lubrication pumps (G1 and G3 Series). During the same month, the company unveiled GrindLazer surface preparation products (high-production) — including RC820 H, RC1640 H and RC1625 G. As noted, the products help in removing markings on surfaces at ease.
Zacks Rank, Price Performance and Estimate Trend
Graco, with a $7.9-billion market capitalization, currently carries a Zacks Rank #4 (Sell). In the first quarter of 2020, the company's organic sales recorded a decline of 8% on a year-over-year basis. Notably, the decline was primarily attributable to weak sales performance in the Americas, EMEA and Asia regions. For 2020, the company suspended its revenue projections on account of the economic uncertainties caused by the coronavirus pandemic.
In the past three months, Graco’s shares have gained 4% compared with the industry’s growth of 28.6%.
In the past 60 days, the company’s earnings estimates for 2020 have decreased from $1.35 to $1.32 due to one downward estimate revision against none upward. In addition, over the same timeframe, the consensus estimate for 2021 earnings has trended down from $1.67 to $1.65, owing to one downward estimate revision against none upward.
Some better-ranked stocks from the Zacks Industrial Products sector are Astec Industries, Inc. ASTE, AZZ Inc. AZZ and Chart Industries, Inc. GTLS. While Astec Industries currently sports a Zacks Rank #1 (Strong Buy), AZZ and Chart Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec Industries delivered a positive earnings surprise of 6.68%, on average, in the trailing four quarters.
AZZ delivered a positive earnings surprise of 6.17%, on average, in the trailing four quarters.
Chart Industries delivered a positive earnings surprise of 1.41%, on average, in the trailing four quarters.
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