Griffon (GFF) ended the recent trading session at $82.65, demonstrating a +1.37% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.24%.
Heading into today, shares of the garage door and building products maker had gained 13.36% over the past month, outpacing the Conglomerates sector's gain of 0.51% and the S&P 500's gain of 4.61%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.5, reflecting a 20.97% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue 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. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Griffon presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Griffon currently has a Forward P/E ratio of 14.3. This expresses a discount compared to the average Forward P/E of 18.99 of its industry.
Meanwhile, GFF's PEG ratio is currently 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 2.01.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Griffon Corporation (GFF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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