Is GGG's Q1 2025 EPS a buying opportunity?
4/4/2025 01:20pm
**Graco's Q1 2025 EPS is not currently forming a buying opportunity** based on the available data and market analysis. Here's why:
1. **Analyst Expectations**: Analysts at DA Davidson have forecasted that Graco will post EPS of $0.67 for Q1 2025. This expectation is slightly above the EPS of $0.63 reported in the previous quarter (Q4 2024), indicating a potential improvement in earnings.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|GGG|GGG.N|Graco|2024 Q2|-1.2820512820512833|0.77|169|
|GGG|GGG.N|Graco|2024 Q3|-7.792207792207799|0.71|169|
2. **Recent Performance and Estimates**: Graco's recent performance has been underwhelming, with a slight decrease in revenue and EPS missing estimates in the previous quarter. However, the EPS for Q1 2025 is not currently forming a buying opportunity due to the following reasons:
- **Earnings Estimate Increase**: Zacks Research has increased its Q1 2026 EPS estimates for Graco, indicating a positive outlook. This suggests that the company's earnings may improve in the future, which could be a buying opportunity.
- **Pessimistic Outlook**: On the other hand, Zacks Research has also issued a pessimistic outlook for Graco's earnings, lowering its FY2025 EPS estimates. This conflicting view from Zacks Research highlights the uncertainty surrounding Graco's future earnings.
3. **Market Sentiment and Valuation**: The stock is currently trading slightly above its fair value, with strong fundamentals such as a healthy current ratio and a history of consecutive dividend increases. However, these factors do not necessarily indicate a buying opportunity at the current EPS level.
4. **Conclusion**: Given the mixed analyst opinions and the recent performance that has not yet rebounded to the level of the previous quarter, the Q1 2025 EPS is not currently forming a buying opportunity. Investors should monitor the company's performance closely, especially considering the potential for future earnings improvements as indicated by some analysts. A cautious approach is advisable until there is clearer consensus on the company's future prospects.