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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Griffon (GFF - Free Report) is a stock many investors are watching right now. GFF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 20.24. Over the past 52 weeks, GFF's Forward P/E has been as high as 11.70 and as low as 6.74, with a median of 8.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GFF has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.15.
Finally, our model also underscores that GFF has a P/CF ratio of 7.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.44. Over the past year, GFF's P/CF has been as high as 7.18 and as low as 3.83, with a median of 5.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Griffon is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GFF feels like a great value stock at the moment.
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Is Griffon (GFF) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Griffon (GFF - Free Report) is a stock many investors are watching right now. GFF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.98 right now. For comparison, its industry sports an average P/E of 20.24. Over the past 52 weeks, GFF's Forward P/E has been as high as 11.70 and as low as 6.74, with a median of 8.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GFF has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.15.
Finally, our model also underscores that GFF has a P/CF ratio of 7.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.44. Over the past year, GFF's P/CF has been as high as 7.18 and as low as 3.83, with a median of 5.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Griffon is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GFF feels like a great value stock at the moment.