In the latest trading session, Griffon (GFF) closed at $94.99, marking a +2.51% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
The garage door and building products maker's shares have seen a decrease of 2.59% over the last month, not keeping up with the Conglomerates sector's loss of 1.28% and the S&P 500's gain of 0.67%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. On that day, Griffon is projected to report earnings of $1.6 per share, which would represent year-over-year growth of 3.9%. In the meantime, our current consensus estimate forecasts the revenue to be $480.94 million, indicating a 27.37% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.41 per share and revenue of $1.84 billion, which would represent changes of -4.25% and -27.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.15% fall in the Zacks Consensus EPS estimate. Griffon is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Griffon currently has a Forward P/E ratio of 15.02. This represents a premium compared to its industry average Forward P/E of 12.71.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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).