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Griffon (GFF) Ascends But Remains Behind Market: Some Facts to Note

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Griffon (GFF - Free Report) ended the recent trading session at $69.63, demonstrating a +0.36% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 1.51%.

The garage door and building products maker's shares have seen an increase of 2.12% over the last month, not keeping up with the Conglomerates sector's gain of 6.3% and the S&P 500's gain of 3.21%.

Market participants will be closely following the financial results of Griffon in its upcoming release. The company's upcoming EPS is projected at $0.94, signifying a 22.31% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $635.16 million, down 10.66% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.80 per share and a revenue of $2.65 billion, signifying shifts of +5.73% and -1.39%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.74% higher. Griffon currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 14.45. This indicates a discount in contrast to its industry's Forward P/E of 17.38.

We can additionally observe that GFF currently boasts a PEG ratio of 0.73. 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 2.25 as trading concluded yesterday.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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