What Happened?

A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Electrical Systems company Powell (NASDAQ: POWL) jumped 5.1%. Is now the time to buy Powell? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Mayville Engineering (NYSE: MEC) jumped 5.8%. Is now the time to buy Mayville Engineering? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Graham Corporation (NYSE: GHM) jumped 7.3%. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Hyster-Yale Materials Handling (NYSE: HY) jumped 6.1%. Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis report here, it’s free.
• Genomics & Sequencing company 10x Genomics (NASDAQ: TXG) jumped 5.6%. Is now the time to buy 10x Genomics? Access our full analysis report here, it’s free.

Zooming In On Graham Corporation (GHM)

Graham Corporation’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 22.2% on the news that the company reported underwhelming fourth quarter 2024 results: its revenue missed and its full-year revenue guidance fell slightly short of Wall Street's estimates. 

Orders fell significantly, reflecting the lumpiness of large capital projects, particularly in defense, which could impact near-term revenue growth. 

Backlog, another leading growth indicator, declined sequentially and relative to the previous year, suggesting the near-term sales momentum might be weaker. Despite these challenges, Graham Corporation beat analysts' EBITDA and EPS expectations this quarter, partially offsetting the otherwise underwhelming results.

Graham Corporation is down 9.7% since the beginning of the year, and at $39.85 per share, it is trading 19.9% below its 52-week high of $49.72 from February 2025. Investors who bought $1,000 worth of Graham Corporation’s shares 5 years ago would now be looking at an investment worth $3,400.

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