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Graco Signs Deal to Acquire Corob & Boost Product Portfolio
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Graco Inc. (GGG - Free Report) recently signed a definitive deal to purchase Corob S.p.A. for €230 million with additional contingent consideration of up to €30 million. Management expects the transaction to be completed in the fiscal fourth quarter, subject to the fulfillment of customary closing conditions.
GGG’s shares gained 2.3% yesterday to eventually close the trading session at $86.81.
Inside the Headlines
Based in San Felice sul Panaro, Italy, Corob is engaged in developing and manufacturing high-tech dispensing and mixing solutions for several applications like paints and coatings, inks and chemicals. The company, which employs more than 600 workers throughout the world, generated revenues of €110 million in 2023.
The latest buyout is in sync with Graco’s policy of acquiring businesses to expand into new markets and strengthen its business and product portfolio. The inclusion of Corob’s strong product line, supported by its solid designing and manufacturing capabilities, will enable GGG to expand its customer offerings and boost its position in the paint and coating machinery manufacturing market. It will incorporate Corob into its Contractor segment, which provides sprayers that are used to paint structures like walls and other product models.
GGG’s Zacks Rank and Price Performance
Image Source: Zacks Investment Research
Graco currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 7.1% in the past six months compared with the industry‘s 0.9% decline.
A decline in demand for the company’s semiconductor, industrial lubrication and process transfer equipment products owing to a weakness in the industrial sector is hampering its performance, of late. For 2024, GGG expects organic revenues to decline in the low single digits from the year-ago level.
The Zacks Consensus Estimate for the 2024 earnings per share has decreased by a penny to $2.98 in the past 60 days.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Crane Company (CR - Free Report) presently has a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 2%.
RBC Bearings (RBC - Free Report) currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 4.8%.
In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 (ending March 2025) earnings has increased 0.7%.
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Graco Signs Deal to Acquire Corob & Boost Product Portfolio
Graco Inc. (GGG - Free Report) recently signed a definitive deal to purchase Corob S.p.A. for €230 million with additional contingent consideration of up to €30 million. Management expects the transaction to be completed in the fiscal fourth quarter, subject to the fulfillment of customary closing conditions.
GGG’s shares gained 2.3% yesterday to eventually close the trading session at $86.81.
Inside the Headlines
Based in San Felice sul Panaro, Italy, Corob is engaged in developing and manufacturing high-tech dispensing and mixing solutions for several applications like paints and coatings, inks and chemicals. The company, which employs more than 600 workers throughout the world, generated revenues of €110 million in 2023.
The latest buyout is in sync with Graco’s policy of acquiring businesses to expand into new markets and strengthen its business and product portfolio. The inclusion of Corob’s strong product line, supported by its solid designing and manufacturing capabilities, will enable GGG to expand its customer offerings and boost its position in the paint and coating machinery manufacturing market. It will incorporate Corob into its Contractor segment, which provides sprayers that are used to paint structures like walls and other product models.
GGG’s Zacks Rank and Price Performance
Image Source: Zacks Investment Research
Graco currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 7.1% in the past six months compared with the industry‘s 0.9% decline.
A decline in demand for the company’s semiconductor, industrial lubrication and process transfer equipment products owing to a weakness in the industrial sector is hampering its performance, of late. For 2024, GGG expects organic revenues to decline in the low single digits from the year-ago level.
The Zacks Consensus Estimate for the 2024 earnings per share has decreased by a penny to $2.98 in the past 60 days.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Crane Company (CR - Free Report) presently has a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 2%.
RBC Bearings (RBC - Free Report) currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 4.8%.
In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 (ending March 2025) earnings has increased 0.7%.