Back to top

Image: Bigstock

Griffon (GFF) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Griffon (GFF - Free Report) ended the recent trading session at $77.53, demonstrating a +1.36% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%.

The garage door and building products maker's shares have seen an increase of 13.02% over the last month, surpassing the Conglomerates sector's gain of 5.39% and the S&P 500's gain of 4.2%.

The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.5, marking a 20.97% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $660.03 million, up 1.89% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for Griffon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Griffon is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Griffon currently has a Forward P/E ratio of 13.42. This signifies a discount in comparison to the average Forward P/E of 17.74 for its industry.

It is also worth noting that GFF currently has a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Diversified Operations stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Griffon Corporation (GFF) - free report >>

Published in