Graham Corporation (GHM) shares ended the last trading session 7.1% higher at $47.26. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.7% gain over the past four weeks.
Graham’s rally is primarily driven by optimism about the strong momentum in its business due to strength in refining, petrochemical and defense markets. Also, the company’s solid backlog and the P3 Technologies buyout bode well.
This maker of vacuum and heat-transfer equipment is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +550%. Revenues are expected to be $48 million, up 9.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Graham, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GHM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Graham belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Luxfer (LXFR), closed the last trading session 0.6% higher at $13.12. Over the past month, LXFR has returned -8.9%.
For Luxfer
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
