GGG

Graco Inc

Technology · Pumps & Pumping Equipment
$78.68+1.01% today
AI Take · AlgoThesis

Graco's 25.5 P/E ratio commands a significant premium to the broader market, yet the stock's RSI of 31.1 suggests oversold conditions with room for mean reversion. The 2.75% short interest remains modest, limiting squeeze potential, while the company sits below its 52-week high—indicating recent weakness despite its elevated valuation. The disconnect between stretched multiples and depressed momentum is noteworthy: either fundamentals must justify the P/E through strong earnings growth, or the premium compresses further. For a $14.5B market-cap industrial compounder, this pricing reflects high expectations that appear vulnerable to disappointment.

Snapshot

Market cap
$14.5B
P/E
25.0
Forward P/E
24.6
EPS (TTM)
$3.07
Dividend yield
1.51%
Net margin
23.0%
ROE
19.7%
RSI (14)
32
Beta
0.78
Short % of float
2.8%
Days to cover
3.5
52w high
No

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