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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Griffon (GFF). GFF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.18, which compares to its industry's average of 29.19. GFF's Forward P/E has been as high as 24.03 and as low as 6.43, with a median of 14.13, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GFF has a P/S ratio of 0.6. This compares to its industry's average P/S of 1.45.
Finally, investors will want to recognize that GFF has a P/CF ratio of 10.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GFF's current P/CF looks attractive when compared to its industry's average P/CF of 30.84. Over the past year, GFF's P/CF has been as high as 10.82 and as low as 3.93, with a median of 8.11.
These are only a few of the key metrics included in Griffon's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GFF looks like an impressive value stock at the moment.
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Griffon Corporation (GFF) : Free Stock Analysis Report
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