Griffon (GFF) ended the recent trading session at $68.28, demonstrating a -1.98% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 5.98%. At the same time, the Dow lost 5.5%, and the tech-heavy Nasdaq lost 5.82%.
The garage door and building products maker's stock has climbed by 0.35% in the past month, exceeding the Conglomerates sector's loss of 5.26% and the S&P 500's loss of 7.66%.
Analysts and investors alike will be keeping a close eye on the performance of Griffon in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.13, indicating a 16.3% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $615.7 million, reflecting an 8.5% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.71 per share and a revenue of $2.59 billion, demonstrating changes of +11.52% and -1.16%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% upward. Currently, Griffon is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Griffon is currently being traded at a Forward P/E ratio of 12.21. This valuation marks a discount compared to its industry's average Forward P/E of 16.3.
It's also important to note that GFF currently trades at a PEG ratio of 0.71. 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. The Diversified Operations industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Griffon Corporation (GFF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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