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Is Griffon (GFF) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Griffon (GFF - Free Report) is a stock many investors are watching right now. GFF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.11, while its industry has an average P/E of 15.79. GFF's Forward P/E has been as high as 14.95 and as low as 9.47, with a median of 12.55, all within the past year.

We also note that GFF holds a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GFF's PEG compares to its industry's average PEG of 1.84. Over the past 52 weeks, GFF's PEG has been as high as 0.73 and as low as 0.64, with a median of 0.67.

Finally, our model also underscores that GFF has a P/CF ratio of 11.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GFF's current P/CF looks attractive when compared to its industry's average P/CF of 13.50. Over the past year, GFF's P/CF has been as high as 15.30 and as low as 7.47, with a median of 11.06.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Griffon is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GFF feels like a great value stock at the moment.


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