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Griffon (GFF) Declines More Than Market: Some Information for Investors

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In the latest trading session, Griffon (GFF - Free Report) closed at $74.21, marking a -1.2% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.

The garage door and building products maker's shares have seen an increase of 1.39% over the last month, surpassing the Conglomerates sector's loss of 0.7% and the S&P 500's gain of 0.94%.

Market participants will be closely following the financial results of Griffon in its upcoming release. On that day, Griffon is projected to report earnings of $1.34 per share, which would represent a year-over-year decline of 3.6%. Meanwhile, the latest consensus estimate predicts the revenue to be $620.82 million, indicating a 1.83% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.92 per share and revenue of $2.53 billion, indicating changes of +4.78% and +0.49%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 has moved 0.27% higher within the past month. Griffon is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 12.69. This signifies a discount in comparison to the average Forward P/E of 16.95 for its industry.

Investors should also note that GFF has a PEG ratio of 1.09 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Diversified Operations was holding an average PEG ratio of 1.7 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 19% of all industries, numbering over 250.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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