Graco Inc

SPX Technologies reported second-quarter revenues of $679 million, up 22.9% year over year and beating analysts' expectations by 5.8%, making it the best performer among the 11 gas and liquid handling stocks tracked. The company also achieved the highest full-year guidance raise among its peers, and its stock has risen 12.2% since reporting to trade at $223.54. Parker-Hannifin posted revenues of $5.76 billion, up 9.8% year over year and exceeding estimates by 3.3%, with full-year EPS guidance also beating expectations. Graco was the slowest performer, with revenues of $590.6 million, up 3.3% year over year but missing estimates by 3%. Flowserve reported revenues of $1.17 billion, down 1.6% year over year but topping estimates by 0.9%, while IDEX posted revenues of $920.6 million, up 6.4% year over year and beating estimates by 1.7%.

Conestoga Capital Advisors reported that Graco Inc. shares underperformed in the second quarter of 2026 as investors focused on slowing organic demand across several end markets, particularly in contractor and industrial equipment, despite healthy profitability and improving backlog trends. The firm noted that while first quarter organic sales declined 3%, management observed that bookings strengthened throughout the quarter, supporting expectations for improving demand over the balance of the year. Graco manufactures fluid handling systems and equipment for industrial, construction, and process applications. The stock detracted from portfolio performance during the quarter, and on August 5, 2026, it closed at $82.50 per share with a market capitalization of $13.36 billion.

StockStory highlights Champion Homes as a standout industrials stock with exciting potential, while advising caution on Graco and XPO. Champion Homes achieved exceptional annual revenue growth of 14.7% over the last two years, driven by market share gains, and its earnings per share grew faster than revenue thanks to share buybacks, with a return on invested capital of 37.9%. In contrast, Graco posted only 2.1% annual revenue growth and flat earnings per share over the same period, with diminishing returns on capital. XPO saw 2.8% annual revenue growth, a below-peer gross margin of 19.8%, and a low free cash flow margin of 1.8% over five years.

Graco's shares have fallen to $74.99 over the last six months, a 10.1% loss that contrasts with the S&P 500's 6.3% gain. Analysts point to three concerns: revenue grew at a tepid 5.4% compounded annual rate over five years, EPS increased just 6.2% annually over the same period, and return on invested capital has declined, signaling fewer profitable growth opportunities. The stock now trades at 23.4 times forward earnings, and the firm does not see a compelling opportunity at current levels, suggesting better investments exist elsewhere.

StockStory identifies Robinhood as a cash-heavy stock with exciting potential, while Graco and Insteel face headwinds. Robinhood holds a net cash position of $2.50 billion, representing 3% of its market cap, and has seen 143% annual growth in average revenue per user alongside a 95.7% annual increase in earnings per share. In contrast, Graco has a net cash position of $667.4 million but has experienced flat earnings per share and shrinking returns on capital. Insteel holds $13.41 million in net cash but has seen its free cash flow margin drop by 5 percentage points over five years and eroding returns on capital.

ITT reported first-quarter revenues of $1.21 billion, up 32.7% year on year and exceeding analyst estimates by 9.8%, making it the fastest-growing and biggest beat among the 12 gas and liquid handling stocks tracked. The group overall posted a satisfactory quarter, with revenues beating consensus by 1.3% and next-quarter guidance coming in 4.8% above expectations. Gorman-Rupp delivered the best performance with a 31% stock gain after reporting revenues of $176.6 million, while Graco was the weakest, missing estimates and seeing its shares fall 11.2%. Flowserve lagged with a 6.7% revenue decline, and Helios topped expectations with 16.8% growth and raised guidance.