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.
