Graco's (GGG) Reactor 3 System to Aid in Spraying Tasks

Graco Inc. GGG recently unveiled the Reactor 3 spray foam proportioner system, its latest addition to the Reactor proportioner product group. Considered a user-friendly product, the Reactor 3 system facilitates the task of foam spray and polyurea applications in an efficient and safe manner.

The company’s shares declined 1.8% yesterday, ending the trading session at $69.72.

Inside the Headlines

Graco’s new Reactor 3 proportioner system comes up with several market-proven components. These include the likes of active ISO lube pump system, brushless motor, inlet filters, drum-level dipsticks, along with other parts and software features, which optimize spray parameters and enhance the product efficiency.

Some of the advanced software features embedded in the system are smart control pressure management system, auto pressure balance and Katalyst system intelligence. The Katalyst software provides a high-level system intelligence to the Reactor 3 system that improves the spray mechanism, removes ratio issues and increases yield. The system’s advanced controller interface allows users to choose spray functions.

It’s worth noting that the product is available in three tiers – Elite, Pro and Standard – each designed to cater to the specific needs of contractors.

The launch is in sync with Graco’s policy of investing in product innovation. Some of the notable products introduced by the company over the past few quarters are SaniSpray HP 20 electrostatic sprayer, Intelligent Paint Kitchen, TapeLazer HP Automatic system, Voltex Dynamic Mix Valve, PerformAA air-assist and airless spray guns.

Zacks Rank, Price Performance and Estimate Trend

Graco, with $11.8-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is likely to gain from healthy demand for products in end markets, synergies from buyouts, and an impressive liquidity position in the quarters ahead. However, supply-chain issues might affect its performance in the near term.

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In the past six months, the company’s shares have inched up 0.2% against the industry’s decline of 1.8%.

In the past 30 days, the company’s earnings estimates for 2022 have increased from $2.74 to $2.75 on the back of one upward estimate revision against none downward.

Key Picks

Some better-ranked companies from the same space are discussed below.

Nordson Corporation NDSN presently carries a Zacks Rank #2 (Buy). The company delivered a four-quarter earnings surprise of 9.85%, on average.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nordson’s earnings estimates have been stable for fiscal 2022 (ending October 2022) in the past 30 days. Its shares have lost 5.6% in the past six months.

Standex International Corporation SXI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.

In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have lost 2.4% in the past six months.

Ferguson plc FERG presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.

In the past 30 days, Ferguson’s earnings estimates have increased 6.5% for fiscal 2022 (ending July 2022). FERG’s shares have lost 3.8% in the past six months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.