Graco Unveils New Spraying Technologies, Boosts Productivity
Zacks Investment Research | Mar 03, 2019 09:37PM ET
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 Zacks Investment Research
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