In the latest close session, Griffon (GFF) was up +1.48% at $82.35. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.26%.
Coming into today, shares of the garage door and building products maker had gained 5.33% in the past month. In that same time, the Conglomerates sector gained 6.06%, while the S&P 500 gained 1.89%.
The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company is expected to report EPS of $1.34, down 3.6% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $620.82 million, down 1.83% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Griffon. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Griffon currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 13.71. This denotes a discount relative to the industry average Forward P/E of 15.9.
We can additionally observe that GFF currently boasts a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 28% of over 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.
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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