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Why Griffon (GFF) Dipped More Than Broader Market Today

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In the latest close session, Griffon (GFF - Free Report) was down 3.31% at $67.69. The stock's change was less than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow experienced a drop of 1.79%, and the technology-dominated Nasdaq saw a decrease of 1.3%.

Shares of the garage door and building products maker have depreciated by 3.82% over the course of the past month, underperforming the Conglomerates sector's loss of 0.1%, and the S&P 500's gain of 3.55%.

Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.5, signifying a 20.97% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $660.03 million, indicating a 1.89% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.7 per share and revenue of $2.57 billion, which would represent changes of +11.33% and -1.88%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Griffon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Griffon currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Griffon is presently being traded at a Forward P/E ratio of 12.28. This signifies a discount in comparison to the average Forward P/E of 16.08 for its industry.

We can additionally observe that GFF currently boasts a PEG ratio of 0.77. 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. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.99.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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