Graco (GGG) was Impacted by Cyclicality in the End Market

Conestoga Capital Advisors, an asset management company, released its “SMid Cap Growth Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The Conestoga Smid Cap Growth Composite returned -6.36% net of fees in the third quarter, compared to the Russell 2500 Growth Index’s -6.84% return. Stock selection in the Industrials, Health Care, and Basic Materials sectors was positive but offset by a lack of exposure to the Energy sector and negative selection in Technology. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga SMid Cap Composite highlighted stocks like Graco Inc. (NYSE:GGG) in the third quarter 2023 investor letter. Based in Minneapolis, Minnesota, Graco Inc. (NYSE:GGG) manufactures and markets systems and equipment to move, measure, control, dispense, and spray fluid and powder materials. On November 15, 2023, Graco Inc. (NYSE:GGG) stock closed at $79.61 per share. One-month return of Graco Inc. (NYSE:GGG) was 11.78%, and its shares gained 13.83% of their value over the last 52 weeks. Graco Inc. (NYSE:GGG) has a market capitalization of $13.437 billion.

Conestoga SMid Cap Composite made the following comment about Graco Inc. (NYSE:GGG) in its Q3 2023 investor letter:

“Graco Inc. (NYSE:GGG): GGG, a pump and flow control manufacturer, reported 2Q23 revenue and earnings results which fell short of expectations. GGG reported a mixed demand environment for its products, softer sales in China, and declines in its home center and pro paint channels. The company is led by a strong management team and the stock has performed well over the last several years but has sometimes been impacted by the cyclicality of its end markets in the short term.”

A technician in a factory controlling the production of fluid and powder materials.

Graco Inc. (NYSE:GGG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Graco Inc. (NYSE:GGG) at the end of second quarter which was 22 in the previous quarter.

We discussed Graco Inc. (NYSE:GGG) in another article and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.