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Griffon (GFF) closed the most recent trading day at $67.17, moving +1.96% from the previous trading session. This change lagged the S&P 500's 2.03% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 2.74%.
The garage door and building products maker's stock has dropped by 9.75% in the past month, falling short of the Conglomerates sector's loss of 8.93% and the S&P 500's loss of 5.07%.
The upcoming earnings release of Griffon will be of great interest to investors. It is anticipated that the company will report an EPS of $1.13, marking a 16.3% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $615.7 million, showing an 8.5% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and a revenue of $2.59 billion, indicating changes of +11.52% and -1.16%, respectively, from the former year.
Investors should also note any recent changes 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.47% rise in the Zacks Consensus EPS estimate. Currently, Griffon is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Griffon is presently trading at a Forward P/E ratio of 11.54. This indicates a discount in contrast to its industry's Forward P/E of 16.13.
Investors should also note that GFF has a PEG ratio of 0.67 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.43 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 68, placing it within the top 28% of over 250 industries.