Griffon (GFF) Beats Stock Market Upswing: What Investors Need to Know
Griffon (GFF) ended the recent trading session at $52.71, demonstrating a +1.05% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.46% for the day. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.7%.
Coming into today, shares of the garage door and building products maker had gained 17.88% in the past month. In that same time, the Conglomerates sector gained 8.51%, while the S&P 500 gained 4.85%.
The upcoming earnings release of Griffon will be of great interest to investors. The company is expected to report EPS of $0.78, down 9.3% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $597.26 million, indicating an 8.03% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.62 per share and a revenue of $2.6 billion, indicating changes of +1.76% and -3.16%, respectively, from the former year.
Any recent changes to analyst estimates for Griffon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.04% increase. Griffon is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 11.28. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
It is also worth noting that GFF currently has a PEG ratio of 0.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Diversified Operations industry had an average PEG ratio of 2.28 as trading concluded yesterday.
The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Report
