Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of fluid handling solutions specialist Graco
So what: Driven largely by a 35% sales jump in Asia Pacific, Graco posted a first-quarter profit of $37.3 million, or $0.61 per share, versus the average analyst estimate of just $0.44 per share. The shares are hitting a new 52-week high on the report, so it's obvious that Mr. Market is taking the strong results as a sign of even more good things to come.
Now what: Don't let today's rally keep you from looking into Graco. While top-line comparisons are certainly getting tougher, CEO Patrick McHale is "optimistic that sales momentum will continue throughout 2011." Of course, with Graco expected to grow its bottom line at a compounded rate of 20% over the next five years, the company's short- and long-term prospects seem attractive.
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