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Should Value Investors Buy Griffon (GFF) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

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 has a Forward P/E ratio of 10.38. This compares to its industry's average Forward P/E of 20.34. Over the past year, GFF's Forward P/E has been as high as 11.70 and as low as 7.66, with a median of 9.37.

Finally, investors will want to recognize that GFF has a P/CF ratio of 11.01. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.82. Over the past 52 weeks, GFF's P/CF has been as high as 11.35 and as low as 3.83, with a median of 5.17.

These are just a handful of the figures considered in Griffon's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GFF is an impressive value stock right now.


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