In the latest close session, Griffon (GFF) was down 2.41% at $92.07. The stock trailed the S&P 500, which registered a daily loss of 0.49%. On the other hand, the Dow registered a loss of 0.05%, and the technology-centric Nasdaq decreased by 0.9%.
The stock of garage door and building products maker has risen by 33.76% in the past month, leading the Conglomerates sector's gain of 0.89% and the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company is expected to report EPS of $0.99, down 19.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $412.91 million, down 32.5% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.16 per share and a revenue of $1.98 billion, demonstrating changes of -8.67% and -21.45%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Griffon. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. At present, Griffon boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Griffon is presently being traded at a Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 15.62, which means Griffon is trading at a premium to the group.
One should further note that GFF currently holds a PEG ratio of 1.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Diversified Operations industry stood at 1.58 at the close of the market yesterday.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Griffon Corporation (GFF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).