5-Star Stocks Poised to Pop: Graham

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, vacuum and heat transfer equipment manufacturer Graham (ASE: GHM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Graham's business and see what CAPS investors are saying about the stock right now.

Graham facts

Headquarters (Founded)

Batavia, N.Y. (1936)

Market Cap

$233.3 million

Industry

Industrial machinery

Trailing-12-Month Revenue

$108.9 million

Management

CEO James Lines (since 2008)
CFO Jeffrey Glajch (since 2009)

Return on Equity (Average, Past 3 Years)

12.1%

Cash/Debt

$44.5 million / $311 thousand

Dividend Yield

0.4%

Competitors

Alfa Laval
Gardner Denver
Kemco Systems

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,100 members who have rated Graham believe the stock will outperform the S&P 500 going forward.

Late last year, one of those bulls, All-Star ikkyu2, touched on the tailwinds working in Graham's favor:

World economy will get back on its feet; [Graham] is positioned in a sweet little niche for the next wave of the energy services business.

E.g.: How do we make our refinery process crude that's more sour than our usual feedstock? Call [Graham]. How do we extend the life of our current nuke plant? Call [Graham]. How do we improve efficiencies at the pump and conversion stages of our solar plant? Call [Graham]. How do we maintain our nuke sub and carrier fleets' nuke-steam motors? Call [Graham].

Everything that matters, worldwide. Nothing that doesn't. I'm so bullish on this company, I could moo.

What do you think about Graham, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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