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Griffon (GFF) Stock Moves -1.2%: What You Should Know

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The latest trading session saw Griffon (GFF - Free Report) ending at $72.36, denoting a -1.2% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.23%. Elsewhere, the Dow lost 1.36%, while the tech-heavy Nasdaq lost 1.4%.

Shares of the garage door and building products maker have appreciated by 5.56% over the course of the past month, outperforming the Conglomerates sector's loss of 3.32% and the S&P 500's gain of 1.61%.

The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company is expected to report EPS of $0.94, down 22.31% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $635.16 million, indicating a 10.66% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.58 per share and a revenue of $2.65 billion, indicating changes of +0.88% and -1.39%, respectively, from the former year.

Any recent changes to analyst estimates for Griffon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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. Currently, Griffon is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Griffon currently has a Forward P/E ratio of 15.98. This represents a discount compared to its industry's average Forward P/E of 18.25.

One should further note that GFF currently holds a PEG ratio of 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Diversified Operations industry stood at 1.88 at the close of the market yesterday.

The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 19, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow GFF in the coming trading sessions, be sure to utilize Zacks.com.


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