Graco, Inc. (NYSE:GGG)

CAPS Rating: 4 out of 5

The Company provide fluid handling solutions to organizations involved in manufacturing, processing, construction and maintenance throughout the world. Its three reportable segments are: sales, engineering and marketing.

Recs

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Player Avatar Idigmoney (< 20) Submitted: 9/11/2007 12:09:39 AM : Outperform Start Price: $35.98 GGG Score: +50.81

This is one of those boring little stocks that makes piles of money. They have everything to do with fluid. They move it, control its flow, measure it, dispense it and apply it in a wide array of industrial settings. In case you're not of aware of this, a lot of industries use a lot of fluids, both here and in India and in China and in Europe and everywhere else in the world...

Recent and consistent long term ROE are around 46%, ROI and consistent long term ROI around 30%. Plus GGG is toward the lower end of its 5 year average P/E range at 18. Dividend 5 year growth rate is 26%. One problem: if we head into recession this one will not fare well for a while. But on the other hand, it has good international customer exposure as well. Down the road, this puppy will grow into a very big dog.

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