Let’s dig into the relative performance of Graco (NYSE: GGG) and its peers as we unravel the now-completed Q1 gas and liquid handling earnings season.

Gas and liquid handling companies possess the technical know-how and specialized equipment to handle valuable (and sometimes dangerous) substances. Lately, water conservation and carbon capture–which requires hydrogen and other gasses as well as specialized infrastructure–have been trending up, creating new demand for products such as filters, pumps, and valves. On the other hand, gas and liquid handling companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 11 gas and liquid handling stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.6% on average since the latest earnings results.

Graco (NYSE: GGG)

Founded in 1926, Graco (NYSE: GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Graco reported revenues of $528.3 million, up 7.3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ Process revenue estimates.

"Sales were up 7 percent in the first quarter with growth in all segments and regions," said Mark Sheahan, Graco's President and CEO.

Interestingly, the stock is up 7.4% since reporting and currently trades at $84.66.

Is now the time to buy Graco? Access our full analysis of the earnings results here, it’s free.

Best Q1: Helios (NYSE: HLIO)

Founded on the principle of treating others as one wants to be treated, Helios (NYSE: HLIO) designs, manufactures, and sells motion and electronic control components for various sectors.

Helios reported revenues of $195.5 million, down 7.8% year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.

Helios pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $30.32.

Is now the time to buy Helios? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Ingersoll Rand (NYSE: IR)

Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.

Ingersoll Rand reported revenues of $1.72 billion, up 2.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Interestingly, the stock is up 7.2% since the results and currently trades at $81.64.

Read our full analysis of Ingersoll Rand’s results here.

Flowserve (NYSE: FLS)

Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE: FLS) manufactures and sells flow control equipment for various industries.

Flowserve reported revenues of $1.14 billion, up 5.2% year on year. This number topped analysts’ expectations by 3.6%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates.

The stock is up 11.2% since reporting and currently trades at $49.91.

Read our full, actionable report on Flowserve here, it’s free.

Gorman-Rupp (NYSE: GRC)

Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.

Gorman-Rupp reported revenues of $163.9 million, up 2.9% year on year. This print missed analysts’ expectations by 0.5%. Aside from that, it was a satisfactory quarter as it produced a solid beat of analysts’ EBITDA estimates.

Gorman-Rupp had the weakest performance against analyst estimates among its peers. The stock is up 9.5% since reporting and currently trades at $36.50.

Read our full, actionable report on Gorman-Rupp here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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