Wrapping up Q3 earnings, we look at the numbers and key takeaways for the gas and liquid handling stocks, including Graco (NYSE:GGG) and its peers.

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 13 gas and liquid handling stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.2%.

Luckily, gas and liquid handling stocks have performed well with share prices up 12.4% 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 $519.2 million, down 3.8% year on year. This print fell short of analysts’ expectations by 3.4%. Overall, it was a disappointing quarter for the company with a miss of analysts’ adjusted operating income estimates.

"We continued to experience soft demand trends in our core end markets, especially in Asia Pacific, which negatively affected our sales for the third quarter," said Mark Sheahan, Graco's President and CEO.

Interestingly, the stock is up 10.4% since reporting and currently trades at $91.49.

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

Best Q3: IDEX (NYSE:IEX)

Founded in 1988, IDEX (NYSE:IEX) is a global manufacturer specializing in highly engineered products such as pumps, flow meters, and fluidics systems for various industries.

IDEX reported revenues of $798.2 million, flat year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with an impressive beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $228.12.

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

CECO (NASDAQ:CECO)

Started in a Cincinnati garage, CECO (NASDAQ:CECO) is a global provider of industrial air quality and fluid handling systems.

CECO reported revenues of $135.5 million, down 9.3% year on year, falling short of analysts’ expectations by 13.1%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.

CECO delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 22.3% since the results and currently trades at $32.13.

Read our full analysis of CECO’s results here.

ITT (NYSE:ITT)

Playing a crucial role in the development of the first transatlantic television transmission in 1956, ITT (NYSE:ITT) provides motion and fluid handling equipment for various industries

ITT reported revenues of $885.2 million, up 7.7% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but organic revenue in line with analysts’ estimates.

The stock is up 5.3% since reporting and currently trades at $152.20.

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

Parker-Hannifin (NYSE:PH)

Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.

Parker-Hannifin reported revenues of $4.90 billion, up 1.2% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates.

The stock is up 9.2% since reporting and currently trades at $682.16.

Read our full, actionable report on Parker-Hannifin here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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