Core Thesis - Graco Inc. is viewed positively due to its strong market position, premium product offerings, and resilient revenue streams, particularly from parts and accessories, which contribute to stable demand and high margins [2][3][4] Company Overview - Graco Inc. specializes in fluid handling equipment, focusing on challenging materials with high viscosities, abrasiveness, and corrosive properties [2] - Approximately 40% of Graco's revenue is derived from parts and accessories, providing a more stable revenue base [2] Financial Performance - Graco enjoys significant pricing power, leading to gross margins exceeding 50% and EBIT margins approaching 30% [3] - The stock was trading at $85.95 as of September 8th, with trailing and forward P/E ratios of 30.48 and 26.95 respectively [1] Market Position - The company has a disciplined management team and a durable position within its niche market, reinforcing its long-term prospects [3][4] - Graco's combination of premium products and high-margin operations positions it as a solid industrial leader capable of delivering consistent cash flow [4] Investment Opportunity - Recent stock underperformance has created an attractive valuation, presenting a compelling entry point for long-term investors seeking durable industrial growth [3][4] - The bullish thesis on Graco remains consistent, emphasizing its strong cash flow and defensible business model [6]