In the latest trading session, Griffon (GFF) closed at $82.38, marking a -1.38% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow saw a downswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.91%.
The stock of garage door and building products maker has risen by 11.21% in the past month, leading the Conglomerates sector's gain of 7.29% and the S&P 500's gain of 0.38%.
The upcoming earnings release of Griffon will be of great interest to investors. In that report, analysts expect Griffon to post earnings of $1.34 per share. This would mark a year-over-year decline of 3.6%. Meanwhile, our latest consensus estimate is calling for revenue of $620.82 million, down 1.83% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.92 per share and a revenue of $2.53 billion, signifying shifts of +4.78% and +0.43%, respectively, from the last year.
It is also important to note the recent changes 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Griffon currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Griffon currently has a Forward P/E ratio of 14.11. This represents a discount compared to its industry average Forward P/E of 16.25.
It's also important to note that GFF currently trades at a PEG ratio of 1.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 1.65.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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