Griffon (GFF) Suffers a Larger Drop Than the General Market: Key Insights

Griffon (GFF) closed at $76.08 in the latest trading session, marking a -1.21% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.34%. Shares of the garage door and building products maker witnessed a loss of 0.38% over the previous month, beating the performance of the Conglomerates sector with its loss of 4.1%, and underperforming the S&P 500's gain of 3.08%.The investment community will be paying close attention to the earnings performance of Griffon in its upcoming release. The company is forecasted to report an EPS of $1.56, showcasing a 6.12% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $629.69 million, down 4.55% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $5.65 per share and a revenue of $2.49 billion, demonstrating changes of +10.35% and -5.18%, respectively, from the preceding year. It is also important to note the recent changes to analyst estimates for Griffon. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 no change in the Zacks Consensus EPS estimate. As of now, Griffon holds a Zacks Rank of #3 (Hold). Looking at valuation, Griffon is presently trading at a Forward P/E ratio of 13.62. This valuation marks a discount compared to its industry average Forward P/E of 19.71. We can also see that GFF currently has a PEG ratio of 1.17. 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. The average PEG ratio for the Diversified Operations industry stood at 1.9 at the close of the market yesterday. The Diversified Operations industry is part of the Conglomerates sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Griffon Corporation (GFF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks