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Why Griffon (GFF) Outpaced the Stock Market Today

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The most recent trading session ended with Griffon (GFF - Free Report) standing at $77.70, reflecting a +1.44% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.25%.

Heading into today, shares of the garage door and building products maker had gained 7.48% over the past month, outpacing the Conglomerates sector's gain of 2.26% and the S&P 500's gain of 1.24% in that time.

Market participants will be closely following the financial results of Griffon in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company is expected to report EPS of $1.28, up 19.63% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $640 million, indicating a 0.49% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.51 per share and a revenue of $2.62 billion, signifying shifts of +7.62% and -0.1%, respectively, from the last year.

Any recent changes to analyst estimates for Griffon should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Griffon is carrying a Zacks Rank of #3 (Hold).

Investors should also note Griffon's current valuation metrics, including its Forward P/E ratio of 13.9. For comparison, its industry has an average Forward P/E of 15.33, which means Griffon is trading at a discount to the group.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 30% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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