Why the Market Dipped But Griffon (GFF) Gained Today
The latest trading session saw Griffon (GFF) ending at $56.59, denoting a +0.93% adjustment from its last day's close. This change outpaced the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the garage door and building products maker had gained 24.6% over the past month. This has outpaced the Conglomerates sector's gain of 8.28% and the S&P 500's gain of 5.21% in that time.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company is expected to report EPS of $0.78, down 9.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $597.26 million, down 8.03% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $2.6 billion. These totals would mark changes of +1.76% and -3.16%, respectively, from last year.
Investors should also take note of any recent adjustments 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 13.04% upward. Currently, Griffon is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Griffon is holding a Forward P/E ratio of 12.13. This indicates a discount in contrast to its industry's Forward P/E of 17.51.
It's also important to note that GFF currently trades at a PEG ratio of 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Diversified Operations industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Griffon Corporation (GFF) : Free Stock Analysis Report
