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Why Griffon (GFF) Dipped More Than Broader Market Today

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In the latest trading session, Griffon (GFF - Free Report) closed at $79.04, marking a -1.01% move from the previous day. This change lagged the S&P 500's 0.54% loss on the day. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 0.66%.

The the stock of garage door and building products maker has fallen by 0.83% in the past month, leading the Conglomerates sector's loss of 3.9% and undershooting the S&P 500's gain of 1.5%.

The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.28, reflecting a 19.63% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $640 million, down 0.49% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.51 per share and a revenue of $2.62 billion, representing changes of +7.62% and -0.1%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Griffon. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.16% lower. At present, Griffon boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Griffon has a Forward P/E ratio of 14.49 right now. For comparison, its industry has an average Forward P/E of 17.84, which means Griffon is trading at a discount to the group.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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