Griffon (GFF) Exceeds Market Returns: Some Facts to Consider

In the latest trading session, Griffon (GFF) closed at $72.65, marking a +1.02% move from the previous day. This change outpaced the S&P 500's 0.52% gain on the day. Elsewhere, the Dow saw an upswing of 1%, while the tech-heavy Nasdaq appreciated by 0.52%.

Heading into today, shares of the garage door and building products maker had gained 4.29% over the past month, outpacing the Conglomerates sector's gain of 2.51% and lagging the S&P 500's gain of 5.95%.

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The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company is predicted to post an EPS of $1.5, indicating a 20.97% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $660.03 million, up 1.89% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.7 per share and revenue of $2.57 billion, indicating changes of +11.33% and -1.88%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Griffon. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% decrease. Griffon presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Griffon is holding a Forward P/E ratio of 12.62. This signifies a discount in comparison to the average Forward P/E of 17.05 for its industry.

We can also see that GFF currently has a PEG ratio of 0.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Diversified Operations stocks are, on average, holding a PEG ratio of 2.06 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 59, placing it within the top 24% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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