In the latest close session, Griffon (GFF) was up +1.12% at $91.10. The stock outpaced the S&P 500's daily gain of 1.05%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.64%.
Coming into today, shares of the garage door and building products maker had gained 25.77% in the past month. In that same time, the Conglomerates sector gained 4.06%, while the S&P 500 gained 8.59%.
The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company's upcoming EPS is projected at $0.99, signifying a 19.51% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $412.91 million, indicating a 32.5% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $1.98 billion. These totals would mark changes of -8.67% and -21.45%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 witnessed a 0.51% decrease. As of now, Griffon holds a Zacks Rank of #4 (Sell).
Investors should also note Griffon's current valuation metrics, including its Forward P/E ratio of 17.46. This signifies a premium in comparison to the average Forward P/E of 16.46 for its industry.
Investors should also note that GFF has a PEG ratio of 1.51 right now. 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. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 1.51.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
