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Griffon (GFF) Falls More Steeply Than Broader Market: What Investors Need to Know

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Griffon (GFF - Free Report) ended the recent trading session at $38.40, demonstrating a -0.65% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.

The garage door and building products maker's stock has dropped by 2.79% in the past month, exceeding the Conglomerates sector's loss of 10.2% and the S&P 500's loss of 3.95%.

The upcoming earnings release of Griffon will be of great interest to investors. The company is forecasted to report an EPS of $1.02, showcasing a 6.42% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $653 million, indicating a 7.89% decrease compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Griffon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Griffon possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Griffon is presently trading at a Forward P/E ratio of 9.51. This denotes a discount relative to the industry's average Forward P/E of 15.6.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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