Graham (GHM) Moves 7.3% Higher: Will This Strength Last?

Graham (GHM) shares soared 7.3% in the last trading session to close at $69.5. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.9% gain over the past four weeks.Graham’s rally is primarily driven by optimism about its strength in defense, energy and process markets. Solid momentum across defense, energy and process markets, supported by robust U.S. defense budget and increased sales in China, bodes well for the company.This maker of vacuum and heat-transfer equipment is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +38.9%. Revenues are expected to be $51.06 million, up 8.6% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Graham is part of the Zacks Manufacturing - General Industrial industry. Generac Holdings (GNRC), another stock in the same industry, closed the last trading session 0.1% lower at $139.87. GNRC has returned -3.2% in the past month.Generac Holdings' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.82. Compared to the company's year-ago EPS, this represents a change of -35%. Generac Holdings currently boasts a Zacks Rank of #4 (Sell).Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Graham Corporation (GHM): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks