Griffon (GFF) closed the most recent trading day at $67.17, moving +1.96% from the previous trading session. This change lagged the S&P 500's 2.03% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
The garage door and building products maker's stock has dropped by 9.75% in the past month, falling short of the Conglomerates sector's loss of 8.93% and the S&P 500's loss of 5.07%.
The upcoming earnings release of Griffon will be of great interest to investors. It is anticipated that the company will report an EPS of $1.13, marking a 16.3% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $615.7 million, showing an 8.5% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and a revenue of $2.59 billion, indicating changes of +11.52% and -1.16%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, there's been a 0.47% rise in the Zacks Consensus EPS estimate. Currently, Griffon is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Griffon is presently trading at a Forward P/E ratio of 11.54. This indicates a discount in contrast to its industry's Forward P/E of 16.13.
Investors should also note that GFF has a PEG ratio of 0.67 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 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.
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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