Should Value Investors Buy Griffon (GFF) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Griffon (GFF). GFF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.29 right now. For comparison, its industry sports an average P/E of 19.78. Over the past year, GFF's Forward P/E has been as high as 11.70 and as low as 7.69, with a median of 9.81.
We also note that GFF holds a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GFF's industry has an average PEG of 1.78 right now. GFF's PEG has been as high as 1.38 and as low as 0.65, with a median of 1.31, all within the past year.
Finally, investors should note that GFF has a P/CF ratio of 10.34. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GFF's current P/CF looks attractive when compared to its industry's average P/CF of 15.85. Within the past 12 months, GFF's P/CF has been as high as 11.35 and as low as 3.83, with a median of 5.98.
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
