Griffon (GFF) closed at $77.23 in the latest trading session, marking a +2.36% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. At the same time, the Dow added 1.35%, and the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the garage door and building products maker had gained 5.1% in the past month. In that same time, the Conglomerates sector lost 1.3%, while the S&P 500 gained 0.89%.
The upcoming earnings release of Griffon will be of great interest to investors. In that report, analysts expect Griffon to post earnings of $1.38 per share. This would mark a year-over-year decline of 0.72%. Alongside, our most recent consensus estimate is anticipating revenue of $620.82 million, indicating a 1.83% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.9 per share and revenue of $2.53 billion, which would represent changes of +4.42% and +0.49%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.75% lower. Right now, Griffon possesses a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Griffon is at present trading with a Forward P/E ratio of 12.78. This signifies a discount in comparison to the average Forward P/E of 16.44 for its industry.
Investors should also note that GFF has a PEG ratio of 1.1 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 1.68 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 176, positioning it in the bottom 29% 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.
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Griffon Corporation (GFF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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