What Happened?
Shares of industrial fluid and energy systems manufacturer Graham Corporation (NYSE: GHM) fell 3% in the afternoon session after weak U.S. jobs data revealed a fourth consecutive month of payroll declines in the factory sector.
According to the Bureau of Labor Statistics, manufacturing payrolls fell by 12,000 in August, marking the longest stretch of declines since 2020. Over the past year, employment in the sector has decreased by nearly 80,000 jobs. This trend aligns with other recent economic indicators, such as data from the Institute for Supply Management, which has shown that manufacturing activity has been contracting since March. The ongoing slowdown is attributed by analysts to factors including trade policy uncertainty and import levies, which have weighed on American factories. The weak labor market data is fueling expectations that the Federal Reserve may consider cutting interest rates to support the slowing economy.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Graham Corporation? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Graham Corporation’s shares are very volatile and have had 21 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 previous big move we wrote about was 3 days ago when the stock dropped 2% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
The sell-off was partly triggered by the latest ISM Manufacturing report, which showed activity in the sector shrinking for a sixth consecutive month. This news sparked a risk-off sentiment among investors, sending major indexes like the S&P 500 and Nasdaq down by more than 1%.
Graham Corporation is up 9.1% since the beginning of the year, but at $48.18 per share, it is still trading 16.1% below its 52-week high of $57.43 from August 2025. Investors who bought $1,000 worth of Graham Corporation’s shares 5 years ago would now be looking at an investment worth $3,374.
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