Griffon (GFF) Beats Stock Market Upswing: What Investors Need to Know

Griffon (GFF) closed at $72.36 in the latest trading session, marking a +1.02% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.54%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 0.77%.

The stock of garage door and building products maker has fallen by 18.12% in the past month, lagging the Conglomerates sector’s loss of 9.97% and the S&P 500’s loss of 4.71%.

Analysts and investors alike will be keeping a close eye on the performance of Griffon in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $1.03, signifying a 16.26% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $412.91 million, down 32.5% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.19 per share and revenue of $1.98 billion. These totals would mark changes of -8.14% and -21.45%, respectively, from last year.

Investors might also notice recent changes to 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Griffon currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note Griffon’s current valuation metrics, including its Forward P/E ratio of 13.81. For comparison, its industry has an average Forward P/E of 16.34, which means Griffon is trading at a discount to the group.

We can also see that GFF currently has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. By the end of yesterday’s trading, the Diversified Operations industry had an average PEG ratio of 1.28.

The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 26% of all 250+ industries.