Griffon (GFF) closed at $76.59 in the latest trading session, marking a +1.1% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Prior to today's trading, shares of the garage door and building products maker had gained 5.03% outpaced the Conglomerates sector's loss of 0.72% and the S&P 500's gain of 2.46%.
The investment community will be paying close attention to the earnings performance of Griffon in its upcoming release. The company is expected to report EPS of $1.56, up 6.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $629.69 million, down 4.55% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.65 per share and revenue of $2.49 billion. These totals would mark changes of +10.35% and -5.18%, respectively, from last year.
Any recent changes to analyst estimates for Griffon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Griffon is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 13.4. Its industry sports an average Forward P/E of 19.57, so one might conclude that Griffon is trading at a discount comparatively.
One should further note that GFF currently holds a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Diversified Operations industry was having an average PEG ratio of 1.88.
The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% echelons of all 250+ industries.
