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Should Value Investors Buy Griffon (GFF) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Griffon (GFF - Free Report) . GFF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 10.36, while its industry has an average P/E of 15.16. Over the last 12 months, GFF's Forward P/E has been as high as 14.95 and as low as 9.47, with a median of 12.09.

Investors should also note that GFF holds a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GFF's industry has an average PEG of 1.79 right now. Over the past 52 weeks, GFF's PEG has been as high as 0.66 and as low as 0.59, with a median of 0.62.

Finally, investors will want to recognize that GFF has a P/CF ratio of 10.32. 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. GFF's P/CF compares to its industry's average P/CF of 13.68. Within the past 12 months, GFF's P/CF has been as high as 15.01 and as low as 7.47, with a median of 10.87.

Value investors will likely look at more than just these metrics, but the above data helps show that Griffon is likely undervalued currently. And when considering the strength of its earnings outlook, GFF sticks out at as one of the market's strongest value stocks.


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