Graham Corporation

StockStory identifies three industrial stocks with exciting potential for sustainable market-beating returns. Graham Corporation, with a market cap of $1.22 billion, has posted 20.3% annual revenue growth over five years and a 13.5 percentage point operating margin improvement. Byrna, valued at $80.33 million, achieved 35.1% annual revenue growth over two years and reached free cash flow breakeven. Leidos, at a $14.11 billion market cap, saw 17.6% average backlog growth over two years and a 5.1 percentage point free cash flow margin increase over five years.

Graham Corporation reported fiscal fourth-quarter net sales of $67.1 million, up 13%, and full-year net sales of $245.3 million, up 17%. The company ended fiscal 2026 with a record backlog of $532.6 million, up 29%, and record full-year orders of $359.4 million. Management highlighted capital spending focused on capability and capacity expansion, automation, productivity improvements, and advanced manufacturing. The company designs and manufactures mission-critical fluid, power, heat transfer, vacuum, and advanced mixing technologies for the defense, energy, process, and space markets.

StockStory identifies Graham Corporation as a growth stock with significant upside potential, while MongoDB and First Busey are flagged as facing slowing momentum. Graham Corporation achieved annual revenue growth of 20.3% over the past five years and expanded its operating margin by 13.5 percentage points, with earnings per share growing 31.5% annually over the last two years. MongoDB, despite 23.6% one-year revenue growth, faces concerns including complex enterprise implementation and an expected 4 percentage point contraction in free cash flow margin. First Busey, with 60% one-year revenue growth, is challenged by a low net interest margin of 3.4% and an estimated 3.1% decline in tangible book value per share over the next 12 months.