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Griffon (GFF) Stock Falls Amid Market Uptick: What Investors Need to Know

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Griffon (GFF - Free Report) closed the latest trading day at $42.22, indicating a -0.66% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.3%.

Shares of the garage door and building products maker have appreciated by 7.7% over the course of the past month, outperforming the Conglomerates sector's loss of 0.96% and the S&P 500's gain of 3.08%.

Market participants will be closely following the financial results of Griffon in its upcoming release. The company is expected to report EPS of $0.97, down 11.01% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $653.53 million, indicating a 7.82% decrease compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Griffon. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.61% higher within the past month. As of now, Griffon holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Griffon is currently exchanging hands at a Forward P/E ratio of 10.39. This expresses a discount compared to the average Forward P/E of 16.67 of its industry.

Meanwhile, GFF's PEG ratio is currently 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations industry had an average PEG ratio of 1.97 as trading concluded yesterday.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 29% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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