In the latest trading session, Griffon (GFF - Free Report) closed at $90.62, marking a +1.92% move from the previous day. This move outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.64%.
Prior to today's trading, shares of the garage door and building products maker had lost 7.31% was narrower than the Conglomerates sector's loss of 19.14% and lagged the S&P 500's gain of 0.61%.
The investment community will be paying close attention to the earnings performance of Griffon in its upcoming release. The company's upcoming EPS is projected at $1.33, signifying a 11.33% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $453.9 million, indicating a 26.03% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.17 per share and revenue of $1.81 billion. These totals would mark changes of -8.5% and -28.24%, respectively, from last year.
Any recent changes to analyst estimates for Griffon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Griffon boasts a Zacks Rank of #3 (Hold).
Investors should also note Griffon's current valuation metrics, including its Forward P/E ratio of 17.21. This signifies a premium in comparison to the average Forward P/E of 13.52 for its industry.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 38% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Griffon (GFF - Free Report) closed the most recent trading day at $91.47, moving -2.29% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.01%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.4%.
Shares of the garage door and building products maker witnessed a gain of 2.72% over the previous month, beating the performance of the Conglomerates sector with its loss of 24.24%, and the S&P 500's gain of 0.32%.
The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.33, marking a 11.33% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $453.9 million, showing a 26.03% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.17 per share and a revenue of $1.81 billion, signifying shifts of -8.5% and -28.24%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Griffon is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Griffon is holding a Forward P/E ratio of 18.12. This represents a premium compared to its industry average Forward P/E of 12.67.
The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 188, this industry ranks in the bottom 24% of all industries, numbering over 250.
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.
To follow GFF in the coming trading sessions, be sure to utilize Zacks.com.
The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Griffon (GFF - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.
Griffon is one of 27 individual stocks in the Conglomerates sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Griffon is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for GFF's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, GFF has gained about 25.4% so far this year. In comparison, Conglomerates companies have returned an average of 6.6%. This means that Griffon is outperforming the sector as a whole this year.
One other Conglomerates stock that has outperformed the sector so far this year is Marubeni Corp. (MARUY - Free Report) . The stock is up 6.7% year-to-date.
In Marubeni Corp.'s case, the consensus EPS estimate for the current year increased 2.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Griffon belongs to the Diversified Operations industry, a group that includes 27 individual companies and currently sits at #175 in the Zacks Industry Rank. On average, this group has gained an average of 6.6% so far this year, meaning that GFF is performing better in terms of year-to-date returns. Marubeni Corp. is also part of the same industry.
Going forward, investors interested in Conglomerates stocks should continue to pay close attention to Griffon and Marubeni Corp. as they could maintain their solid performance.
In the latest trading session, Griffon (GFF - Free Report) closed at $97.53, marking a +1.19% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 1.52%.
The garage door and building products maker's stock has climbed by 13.15% in the past month, exceeding the Conglomerates sector's loss of 0.25% and the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Griffon in its upcoming release. The company is predicted to post an EPS of $1.33, indicating a 11.33% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $453.9 million, indicating a 26.03% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.17 per share and revenue of $1.81 billion, indicating changes of -8.5% and -28.24%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Griffon is currently a Zacks Rank #3 (Hold).
In the context of valuation, Griffon is at present trading with a Forward P/E ratio of 18.65. This valuation marks a premium compared to its industry average Forward P/E of 12.07.
The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
The Zacks Diversified Operations industry is benefiting from solid momentum in the manufacturing sector and strength across the aerospace and defense industries. Growth in commercial aviation and steady demand in the home and building product markets are key catalysts for the industry’s growth.
However, supply-chain issues have been weighing on the performance of some industry players. 3M Company (MMM - Free Report) , Griffon Corporation (GFF - Free Report) , GPGI, Inc. (GPGI - Free Report) and Public Policy Holding Company, Inc. (PPHC - Free Report) are a few industry participants that are likely to capitalize on the opportunities.
About the Industry The Zacks Diversified Operations industry includes companies that operate in various end markets, including oil & gas, industrial, electronics, power, aviation, technology, finance, healthcare, chemical, non-residential construction and transportation. Such companies manufacture and provide equipment and solutions, including bioprocessing products, molecular testing-related products, gas and steam turbines, generators, commercial jet engines and engineered fluid-process equipment. Industry players also provide related services to a large customer base. A few companies offer services in the agriculture, marine and telecommunications markets and are engaged in providing environmental and safety solutions. The diversified market operators have a vast global presence, with exposure in the United States, Japan, India, China, Canada and other countries.
Major Trends Shaping the Future of the Diversified Operations Industry Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the fifth consecutive month in May. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 54% in May. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 56.8% in the same month.
Robust Aerospace and Defense Markets: The prospects of multi-sector companies primarily depend on the operating conditions of several end markets. Some factors that currently favor the industry are healthy demand from the aerospace, defense and governmental sectors and infrastructure development. Industry players with exposure to the commercial aviation markets are poised to gain from healthy growth in air transport flight hours. Also, solid demand for several products and equipment in the consumer and professional, and home and building product markets bodes well for some industry participants.
Investments in Innovation & Technological Advancements: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.
Supply-Chain Disruptions: Supply-chain disruptions, especially related to the availability of electrical and electronic components, have been concerning for the industry participants of late. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the seventh straight month in June. Supply-chain issues, if not controlled, might hinder the growth of diversified operation companies, going forward.
Zacks Industry Rank Suggests Strong Prospects The Zacks Diversified Operations industry, housed within the broader Zacks Conglomerates sector, currently carries a Zacks Industry Rank #100. This rank places it in the top 40% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Given the bullish near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. However, it is worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Lags the S&P 500 In the past year, the Zacks Diversified Operations industry has underperformed the S&P 500 composite. The industry has declined 5.8% against the S&P 500 Index’s 23.3% rise.
One-Year Price Performance
Industry's Current Valuation On the basis of forward P/E (F12M), which is a commonly used multiple for valuing diversified operations stocks, the industry is currently trading at 15.49X compared with the S&P 500’s 21.02X.
Over the past five years, the industry has traded as high as 17.56X and as low as 10.38X, with a median of 14.26X, as the chart below shows:
Price-to-Earnings Ratio Versus S&P 500
4 Diversified Operations Stocks Leading the Pack GPGI: Based in Saint Somerset, NJ, GPGI provides metal payment cards, secure authentication solutions and engineered injection molding equipment and aftermarket services for the food, packaging, medical and consumer products markets worldwide. The company is benefiting from its diversified portfolio, with market-leading business CompoSecure driving growth. Solid momentum in the Husky business also bodes well.
Though shares of this Zacks Rank #1 (Strong Buy) company have lost 0.6% in the past year, they rose 13% in the past month. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing two quarters, the average surprise being 25.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: GPGI
3M: Based in St. Paul, MN, 3M operates as a diversified technology firm. It has manufacturing operations across the globe and serves a diversified customer base throughout the world. The company stands to gain from strong momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Solid momentum in the semiconductor, data center, aerospace and defense, commercial branding and automotive markets is aiding its Transportation and Electronics segment.
Shares of this Zacks Rank #2 (Buy) company have soared 10.1% in the past year. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.6%.
Price and Consensus: MMM
Griffon: Based in New York, Griffon engages in the manufacture and sale of a broad range of consumer, professional, home and building products, including garage doors, shutters, home organization products and outdoor living products. GFF is benefiting from resilient repair and remodeling demand across its Clopay operations. Increase in demand for rolling steel door and grille products in commercial construction markets also remains supportive.
The Zacks Rank #2 company’s shares surged 31.9% in the past year. GFF has delivered better-than-expected results in three of the trailing four quarters while missing the mark in one, the average surprise being 3.3%.
Price and Consensus: GFF
Public Policy Holding: Situated in Washington, Public Policy Holding is engaged in providing government relations, public affairs, corporate communications and compliance consulting services to its clients. PPHC is gaining from strength in its Government Relations Consulting segment, driven by stable pricing of retainer contracts both at the U.S. Federal and State levels. Solid momentum in the Corporate Communications & Public Affairs Consulting segment has also been proving beneficial.
This Zacks Rank #2 company’s 2026 earnings estimate remained steady in the past 60 days. The company delivered better-than-expected results in each of the trailing two quarters, the average surprise being 2.1%.
In the latest trading session, Griffon (GFF - Free Report) closed at $91.13, marking a +2.58% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.
Shares of the garage door and building products maker have appreciated by 6.57% over the course of the past month, outperforming the Conglomerates sector's gain of 5.4%, and the S&P 500's gain of 0.29%.
The upcoming earnings release of Griffon will be of great interest to investors. In that report, analysts expect Griffon to post earnings of $1.33 per share. This would mark a year-over-year decline of 11.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $453.9 million, down 26.03% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.17 per share and a revenue of $1.81 billion, signifying shifts of -8.5% and -28.24%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Griffon presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Griffon is currently trading at a Forward P/E ratio of 17.19. This denotes a premium relative to the industry average Forward P/E of 12.98.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 28% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
In the latest trading session, Griffon (GFF - Free Report) closed at $93.72, marking a -1.66% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.5%. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.31%.
The stock of garage door and building products maker has risen by 10.93% in the past month, leading the Conglomerates sector's gain of 2.08% and the S&P 500's loss of 0.23%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.33, marking a 11.33% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $453.9 million, indicating a 26.03% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.17 per share and a revenue of $1.81 billion, signifying shifts of -8.5% and -28.24%, 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.25% upward. Griffon presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Griffon is currently exchanging hands at a Forward P/E ratio of 18.44. This signifies a premium in comparison to the average Forward P/E of 12.92 for its industry.
The Diversified Operations industry is part of the Conglomerates sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 40% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Griffon (GFF - Free Report) ended the recent trading session at $82.72, demonstrating a +2.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.
Shares of the garage door and building products maker have appreciated by 11.16% over the course of the past month, outperforming the Conglomerates sector's gain of 2.17%, and the S&P 500's gain of 3.93%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.99, showcasing a 19.51% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.91 million, down 32.5% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.16 per share and revenue of $1.98 billion, indicating changes of -8.67% and -21.45%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Griffon. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Griffon presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Griffon is currently exchanging hands at a Forward P/E ratio of 15.68. This valuation marks a discount compared to its industry average Forward P/E of 16.26.
Investors should also note that GFF has a PEG ratio of 1.35 right now. 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. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 1.35.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
On April 20, 2026, Griffon Corp GFF shares rose 3.4% today, bringing the current price to $90.78. The stock has experienced significant price movements, ranging from a 52-week low of $63.92 to a high of $97.58 over the past year.
GF Value™ verdict: Current price is $90.78 vs GF Value™ of $66.36, indicating a 36.8% overvaluation.GF Score™: 73/100, signifying an Above Average rating.Most notable signal: Insider activity shows $0.1M in purchases against $3.8M in sales over the last 3 months. Is GFF Overvalued or Undervalued? Griffon Corp's current share price of $90.78 is significantly above the GF Value™ estimate of $66.36, indicating that the stock is overvalued by approximately 36.8%. This overvaluation suggests a lack of margin of safety for potential investors, meaning that the current price may not adequately reflect the intrinsic value of the company. The GF Valuation label categorizes GFF as "Significantly Overvalued," which raises concerns about the sustainability of the current stock price.
Investors should be cautious as this overvaluation poses a risk; if the market corrects, GFF's share price may decline significantly to align with its intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Understanding this metric is crucial for assessing the potential risks associated with current investment levels in GFF.
How Does GFF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 98.7x 17.5x Forward P/E 17.2x N/A The current P/E ratio of 98.7x is significantly above its 5-year median P/E of 17.5x, indicating that GFF is trading at a premium compared to its historical valuation. The forward P/E of 17.2x does suggest a potential reduction in valuation if earnings expectations are met, but the current P/E analysis aligns with the GF Value™ verdict of being overvalued. This discrepancy highlights the disparity between current market sentiment and historical performance metrics.
What Does GFF's GF Score™ Tell Us? Metric Rating GF Score™ 73 Financial Strength 4/10 Profitability 7/10 Growth 3/10 Valuation 5/10 Momentum 7/10 The GF Score™ of 73/100 indicates that GFF is rated as Above Average. The strongest aspect of the score is Profitability, rated at 7/10, suggesting that the company is performing well in generating profits. However, the weakest area is Growth, rated at only 3/10, indicating potential challenges in expanding its business. Financial Strength is also relatively low at 4/10, which may concern risk-averse investors.
What Are Insiders Doing with GFF Stock? In the last three months, insider activity has shown a mixed pattern, with insiders buying $0.1 million worth of stock while selling $3.8 million. This pattern suggests that insiders may have reservations about the future performance of GFF, as the volume of sales far exceeds the purchases. Such selling activity could signal a lack of confidence in the stock's current valuation, further reinforcing the concerns about its overvaluation.
What This Means for Investors Based on the analysis, Griffon Corp GFF is currently overvalued according to the GF Value™ estimate. The significant disparity between the current price and the estimated intrinsic value raises concerns about potential risks for investors considering entry into the stock at these levels.
For the complete analysis, visit the Griffon Corp GFF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GFF's GF Score™?
GFF's GF Score™ is 73/100, indicating an Above Average rating that suggests potential for positive long-term returns based on historical performance.
Is GFF overvalued or undervalued?
GFF is currently overvalued, with a GF Value™ of $66.36 compared to the current price of $90.78, indicating a 36.8% overvaluation.
What is GFF's P/E ratio?
GFF's P/E ratio is 98.7x, which is significantly higher than its 5-year median of 17.5x, suggesting a premium valuation compared to its historical trading levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
In the latest close session, Griffon (GFF - Free Report) was up +1.12% at $91.10. The stock outpaced the S&P 500's daily gain of 1.05%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.64%.
Coming into today, shares of the garage door and building products maker had gained 25.77% in the past month. In that same time, the Conglomerates sector gained 4.06%, while the S&P 500 gained 8.59%.
The investment community will be closely monitoring the performance of Griffon in its forthcoming earnings report. The company's upcoming EPS is projected at $0.99, signifying a 19.51% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $412.91 million, indicating a 32.5% downward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.16 per share and revenue of $1.98 billion. These totals would mark changes of -8.67% and -21.45%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Griffon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.51% decrease. As of now, Griffon holds a Zacks Rank of #4 (Sell).
Investors should also note Griffon's current valuation metrics, including its Forward P/E ratio of 17.46. This signifies a premium in comparison to the average Forward P/E of 16.46 for its industry.
Investors should also note that GFF has a PEG ratio of 1.51 right now. 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. By the end of yesterday's trading, the Diversified Operations industry had an average PEG ratio of 1.51.
The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
In the latest close session, Griffon (GFF - Free Report) was down 2.41% at $92.07. The stock trailed the S&P 500, which registered a daily loss of 0.49%. On the other hand, the Dow registered a loss of 0.05%, and the technology-centric Nasdaq decreased by 0.9%.
The stock of garage door and building products maker has risen by 33.76% in the past month, leading the Conglomerates sector's gain of 0.89% and the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of Griffon in its upcoming earnings disclosure. The company is expected to report EPS of $0.99, down 19.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $412.91 million, down 32.5% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.16 per share and a revenue of $1.98 billion, demonstrating changes of -8.67% and -21.45%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Griffon. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. At present, Griffon boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Griffon is presently being traded at a Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 15.62, which means Griffon is trading at a premium to the group.
One should further note that GFF currently holds a PEG ratio of 1.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Diversified Operations industry stood at 1.58 at the close of the market yesterday.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
NEW YORK--(BUSINESS WIRE)--Griffon Corporation (“Griffon” or the “Company”) (NYSE: GFF) today announced it will release the Company’s fiscal second quarter results on Thursday, May 7, 2026, followed by a conference call at 8:30 AM ET.
The call can be accessed by dialing 1-877-407-0792 (U.S. participants) or 1-201-689-8263 (International participants). Callers should ask to be connected to the Griffon Corporation teleconference or provide conference ID number 13759508. Participants are encouraged to dial-in at least 10 minutes before the scheduled start time.
A replay of the call will be available starting on Thursday, May 7, 2026, at 11:30 AM ET by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering the conference ID number: 13759508. The replay will be available through Thursday, May 21, 2026, at 11:59 PM ET.
About Griffon Corporation
Griffon is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as divestitures. As long-term investors, we intend to continue to grow and strengthen our existing businesses, and to diversify further through investments in our businesses and acquisitions.
Griffon conducts its operations through two reportable segments:
Home and Building Products conducts its operations through Clopay Corporation (“Clopay”). Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the Clopay, Cornell and Cookson brands. Consumer and Professional Products (“CPP”) is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper, and ClosetMaid. For more information on Griffon and its operating subsidiaries, please see the Company’s website at www.griffon.com.
NEW YORK--(BUSINESS WIRE)--The Board of Directors of Griffon Corporation (NYSE: GFF) (the “Company” or “Griffon”) yesterday declared a regular quarterly cash dividend of $0.22 per share. The dividend is payable on June 17, 2026 to shareholders of record as of the close of business on May 29, 2026.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
The AMES North America, Australia, and United Kingdom businesses are classified as discontinued operations.
For more information on Griffon, please see the Company’s website at www.griffon.com.
NEW YORK--(BUSINESS WIRE)--Griffon Corporation (“Griffon” or the “Company”) (NYSE:GFF) today reported results for the fiscal 2026 second quarter ended March 31, 2026.
Revenue for the second quarter totaled $421.9 million, a 1% decrease compared to $426.7 million in the prior year quarter, due to decreased volume of 6% primarily driven by residential, partially offset by favorable price and mix of 5% driven by both residential and commercial.
Income from continuing operations totaled $46.9 million, or $1.03 per share, compared to $49.8 million, or $1.06 per share, in the prior year quarter. Excluding all items that affect comparability from both periods, adjusted income from continuing operations (a non-GAAP measure) was $48.1 million, or $1.05 per share, in the current year quarter compared to $49.5 million, or $1.05 per share, in the prior year quarter. For a reconciliation of income from continuing operations to adjusted income from continuing operations (a non-GAAP measure), and earnings per share from continuing operations to adjusted earnings per share from continuing operations (a non-GAAP measure), see the attached table.
Adjusted EBITDA from continuing operations for the second quarter was $97.8 million, a 4% decrease from the prior year quarter of $101.7 million, driven by the decreased revenue noted above, the unfavorable impact of decreased volume on overhead absorption, and increased material costs. For a definition of adjusted EBITDA and a reconciliation of net income to adjusted EBITDA (a non-GAAP measure), see the attached table.
“Our team delivered solid performance this quarter, and Griffon is on track for another strong year," said Ronald J. Kramer, Chairman and CEO of Griffon. "The strategic actions we announced in the quarter to streamline our business into a pure-play building products company are progressing well. Given our first half results, and continued confidence in our outlook, we are maintaining our financial guidance for the fiscal year."
"During our first half, we returned $72 million to shareholders through dividends and share repurchases while maintaining our net debt to EBITDA leverage," continued Mr. Kramer. "We will continue to follow our balanced capital allocation strategy to maintain our strong balance sheet while returning value to our shareholders."
Taxes
The Company reported pre-tax income from continuing operations for the quarters ended March 31, 2026 and 2025, and recognized effective tax rates of 27.8% and 26.3%, respectively. Excluding all items that affect comparability, the effective tax rates for the quarters ended March 31, 2026 and 2025 were 27.7% and 27.8%, respectively.
Balance Sheet and Capital Expenditures
As of March 31, 2026, the Company had cash and equivalents of $109.7 million and total debt outstanding of $1.4 billion, resulting in net debt of $1.3 billion. Leverage, as calculated in accordance with our credit agreement (see the attached table), was 2.4x net debt to EBITDA as of March 31, 2026 compared to 2.6x as of March 31, 2025 and 2.4x as of September 30, 2025. Free cash flow from continuing operations was $100.7 million and capital expenditures, net, were $17.6 million for the six month period ended March 31, 2026. At March 31, 2026, borrowing availability under the revolving credit facility was $436.8 million, subject to certain loan covenants. For a reconciliation and definition of free cash flow from continuing operations (a non-GAAP measure), to net cash provided by operating activities from continuing operations, see the attached table.
Share Repurchases
Share repurchases during the quarter ended March 31, 2026 totaled 0.4 million shares of common stock, for a total of $32.9 million, or an average of $78.03 per share. As of March 31, 2026, $247.0 million remained under the Board authorized share repurchase program. Since April 2023 and through March 31, 2026, the Company purchased 11.5 million shares of common stock or 20.1% of the outstanding shares, for a total of $610.9 million or an average of $53.21 per share.
Strategic Actions Update
On February 5, 2026, Griffon announced entering into a definitive agreement with ONCAP, the mid-market private equity platform of Onex Corporation (TSX:ONEX), to form a joint venture which will include the AMES U.S. and Canada businesses. In addition, Griffon announced the exploration of strategic alternatives for the AMES Australia and United Kingdom businesses, and the combination of Hunter Fan with the Home and Building Products (HBP) segment.
Griffon expects to close the joint venture with ONCAP by the end of June 2026. The strategic process for AMES Australia is active and ongoing, and Griffon is in the process of exiting the United Kingdom. Griffon expects these strategic actions to be completed by the end of the calendar year.
Starting with Griffon’s fiscal second quarter, AMES U.S., Canada, Australia, and UK are reported as discontinued operations, and Griffon reports the financial results of its continuing operations as a single segment.
2026 Outlook
Griffon's fiscal year 2026 outlook is unchanged from the first quarter, and is consistent with the expected contributions from the legacy HBP segment and Hunter Fan as included within Griffon’s guidance provided in November 2025.
Griffon expects fiscal 2026 revenue from continuing operations to be $1.8 billion. Adjusted EBITDA, presented to reflect Griffon's new reporting structure, is expected to be $458 million, excluding certain charges that affect comparability. Free cash flow from continuing operations, including capital expenditures of $50 million, is expected to exceed net income from continuing operations, with depreciation of $27 million and amortization of $15 million. Fiscal year 2026 interest expense is expected to be $93 million, excluding any interest income from the anticipated AMES joint venture. Griffon’s normalized tax rate is expected to be 28%.
Conference Call Information
The Company will hold a conference call today, May 7, 2026, at 8:30 AM ET.
The call can be accessed by dialing 1-877-407-0792 (U.S. participants) or 1-201-689-8263 (International participants). Callers should ask to be connected to the Griffon Corporation teleconference or provide conference ID number 13759508. Participants are encouraged to dial-in at least 10 minutes before the scheduled start time.
A replay of the call will be available starting on Thursday, May 7, 2026, at 11:30 AM ET by dialing 1-844-512-2921 (U.S.) or 1-412-317-6671 (International) and entering the conference ID number: 13759508. The replay will be available through Thursday, May 21, 2026, at 11:59 PM ET.
Forward-looking Statements
“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, the industries in which Griffon Corporation (the “Company” or “Griffon”) operates that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates,” “supports,” “plans,” “projects,” “expects,” “believes,” "achieves,” “should,” “would,” “could,” “hope,” “forecast,” “management is of the opinion,” “may,” “will,” “estimates,” “intends,” “explores,” “opportunities,” the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon’s ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives; the ability to identify and successfully consummate, and integrate, value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon; the ability of Griffon to expand into new geographic and/or product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations; increases in the cost or lack of availability of raw materials such as steel, resin and wood, components or purchased finished goods, including any potential impact on costs or availability resulting from tariffs; changes in customer demand or loss of a material customer at Griffon; the potential impact of seasonal variations and uncertain weather patterns; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon’s credit ratings; changes in economic conditions in the United States ("U.S.") or internationally including inflation, interest rate and currency exchange fluctuations; the reliance on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services, which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon’s ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of certain products; possible terrorist threats and actions and their impact on the global economy; effects of possible IT system failures, data breaches or cyber-attacks; the impact of pandemics on the U.S. and the global economy, including business disruptions, reductions in employment and an increase in business and operating facility failures, specifically among our customers and suppliers; Griffon’s ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company’s Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
The AMES North America, Australia, and United Kingdom businesses are classified as discontinued operations.
For more information on Griffon, please see the Company’s website at www.griffon.com.
GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
Six Months Ended March 31,
2026
2025
2026
2025
Revenue
$
421,860
$
426,684
$
876,120
$
870,137
Cost of goods and services
229,871
228,337
475,398
460,403
Gross profit
191,989
198,347
400,722
409,734
Selling, general and administrative expenses
104,643
107,461
213,963
214,507
Income from continuing operations
87,346
90,886
186,759
195,227
Other income (expense)
Interest expense
(21,137
)
(23,857
)
(43,130
)
(48,695
)
Interest income
4
241
241
339
Loss from debt extinguishment
—
—
(556
)
—
Other, net
(1,238
)
317
(2,616
)
586
Total other expense, net
(22,371
)
(23,299
)
(46,061
)
(47,770
)
Income before taxes from continuing operations
64,975
67,587
140,698
147,457
Provision for income taxes from continuing operations
18,038
17,782
38,189
38,516
Income from continuing operations
$
46,937
$
49,805
$
102,509
$
108,941
Discontinued operations:
Income (loss) from operations of discontinued operations
$
(37,770
)
$
11,050
$
(23,527
)
$
28,600
Provision (benefit) for income taxes
(10,151
)
4,093
(4,723
)
9,928
Income (loss) from discontinued operations
(27,619
)
6,957
(18,804
)
18,672
Net income
$
19,318
$
56,762
$
83,705
$
127,613
Basic earnings per common share:
Income from continuing operations
$
1.05
$
1.09
$
2.30
$
2.39
Income (loss) from discontinued operations
(0.62
)
0.15
(0.42
)
0.41
Basic earnings per common share
$
0.43
$
1.24
$
1.88
$
2.80
Basic weighted-average shares outstanding
44,616
45,658
44,636
45,598
Diluted earnings per common share:
Income from continuing operations
$
1.03
$
1.06
$
2.24
$
2.31
Income (loss) from discontinued operations
(0.60
)
0.15
(0.41
)
0.40
Diluted earnings per common share
$
0.42
$
1.21
$
1.83
$
2.70
Diluted weighted-average shares outstanding
45,690
46,900
45,727
47,226
Dividends paid per common share
$
0.22
$
0.18
$
0.44
$
0.36
Net income
$
19,318
$
56,762
$
83,705
$
127,613
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments
1,020
2,970
4,621
(17,048
)
Pension and other post retirement plans
1,927
541
3,855
596
Change in cash flow hedges
(773
)
(1,094
)
(1,750
)
1,170
Total other comprehensive income (loss), net of taxes
2,174
2,417
6,726
(15,282
)
Comprehensive income, net
$
21,492
$
59,179
$
90,431
$
112,331
GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 31,
2026
September 30,
2025
CURRENT ASSETS
Cash and equivalents
$
109,672
$
99,045
Accounts receivable, net of allowances of $5,999 and $5,641
200,906
196,957
Inventories
184,163
171,747
Prepaid and other current assets
39,308
42,079
Assets of discontinued operations held for sale
695,755
735,816
Total Current Assets
1,229,804
1,245,644
PROPERTY, PLANT AND EQUIPMENT, net
202,637
195,950
OPERATING LEASE RIGHT-OF-USE ASSETS
68,355
53,041
GOODWILL
191,253
191,253
INTANGIBLE ASSETS, net
349,975
363,955
OTHER ASSETS
24,249
26,191
Total Assets
$
2,066,273
$
2,076,034
CURRENT LIABILITIES
Notes payable and current portion of long-term debt
$
8,018
$
8,033
Accounts payable
84,805
57,663
Accrued liabilities
92,643
114,628
Current portion of operating lease liabilities
17,232
15,473
Liabilities of discontinued operations held for sale
226,923
250,390
Total Current Liabilities
429,621
446,187
LONG-TERM DEBT, net
1,394,836
1,404,276
LONG-TERM OPERATING LEASE LIABILITIES
55,201
40,453
OTHER LIABILITIES
92,168
111,146
Total Liabilities
1,971,826
2,002,062
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity
94,447
73,972
Total Liabilities and Shareholders’ Equity
$
2,066,273
$
2,076,034
GRIFFON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES - CONTINUING OPERATIONS:
Net income
$
83,705
$
127,613
Net (income) loss from discontinued operations
18,804
(18,672
)
Income from continuing operations
102,509
108,941
Adjustments to reconcile net income to net cash provided by operating activities - continuing operations:
Depreciation and amortization
19,581
19,091
Stock-based compensation
13,758
11,262
Provision (recovery) for losses on accounts receivable
216
(309
)
Amortization of debt discounts and issuance costs
2,008
2,053
Loss from debt extinguishment
556
—
Pension and other post-retirement non-cash charges
3,940
570
Deferred income tax provision (benefit)
(124
)
—
Change in assets and liabilities:
Increase in accounts receivable
(1,984
)
(5,757
)
Increase in inventories
(12,537
)
(11,096
)
Decrease in prepaid and other assets
797
6,463
Increase (decrease) in accounts payable, accrued liabilities and other liabilities
(9,899
)
9,434
Other changes
(507
)
(955
)
Net cash provided by operating activities - continuing operations
118,314
139,697
CASH FLOWS FROM INVESTING ACTIVITIES - CONTINUING OPERATIONS:
Acquisition of property, plant and equipment
(17,652
)
(25,938
)
Other, net
—
137
Net cash used in investing activities - continuing operations
(17,652
)
(25,801
)
CASH FLOWS FROM FINANCING ACTIVITIES - CONTINUING OPERATIONS:
Dividends paid
(21,218
)
(23,441
)
Purchase of shares for treasury
(64,459
)
(121,453
)
Proceeds from long-term debt
50,000
63,000
Payments of long-term debt
(62,012
)
(52,011
)
Other, net
(69
)
(27
)
Net cash used in financing activities - continuing operations
(97,758
)
(133,932
)
CASH FLOWS FROM DISCONTINUED OPERATIONS:
Net cash provided by operating activities
10,913
19,437
Net cash provided by (used in) investing activities
(2,148
)
12,341
Net cash used in financing activities
(60
)
(68
)
Net cash provided by discontinued operations
8,705
31,710
Effect of exchange rate changes on cash and equivalents
(982
)
1,709
NET INCREASE IN CASH AND EQUIVALENTS
10,627
13,383
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD
99,045
114,438
CASH AND EQUIVALENTS AT END OF PERIOD
$
109,672
$
127,821
Supplemental Disclosure of Non-Cash Flow Information:
Capital expenditures in accounts payable
$
2,035
$
1,150
Griffon uses adjusted income from continuing operations, and the related adjusted earnings per share from continuing operations as key metrics in evaluating performance. These key metrics are non-GAAP measures that exclude the impact of retirement plan events, non-cash impairment charges, loss from debt extinguishment, acquisition related expenses and discrete and certain other tax items, as well as other items that may affect comparability, as applicable. Griffon believes this information is useful to investors. The following table provides a reconciliation of net income to income from continuing operations, to adjusted income from continuing operations and earnings per share from continuing operations, to adjusted earnings per share from continuing operations:
For the Three Months Ended
March 31,
For the Six Months Ended
March 31,
2026
2025
2026
2025
(in thousands, except per share data)
(Unaudited)
Net income
$
19,318
$
56,762
$
83,705
$
127,613
Less: Income (loss) from discontinued operations
(27,619
)
6,957
(18,804
)
18,672
Income from continuing operations
46,937
49,805
102,509
108,941
Adjusting items:
Impact of retirement plan events(1)
1,609
—
3,218
—
Loss from debt extinguishment
—
—
556
—
Strategic review - retention and other
—
889
—
1,778
Tax impact of above items(2)
(384
)
(219
)
(900
)
(439
)
Discrete and certain other tax provisions (benefits), net(3)
(14
)
(1,006
)
215
(1,134
)
Adjusted income from continuing operations
$
48,148
$
49,469
$
105,598
$
109,146
Earnings per common share from continuing operations
$
1.03
$
1.06
$
2.24
$
2.31
Adjusting items, net of tax:
Impact of retirement plan events(1)
0.03
—
0.05
—
Loss from debt extinguishment
—
—
0.01
—
Strategic review - retention and other
—
0.01
—
0.03
Discrete and certain other tax provisions (benefits), net(3)
—
(0.02
)
—
(0.02
)
Adjusted earnings per common share from continuing operations
$
1.05
$
1.05
$
2.31
$
2.31
Diluted weighted-average shares outstanding
45,690
46,900
45,727
47,226
Note: Due to rounding, the sum of earnings per common share and adjusting items, net of tax, may not equal adjusted earnings per common share. (1) For the three and six months ended March 31, 2026, the impact of retirement plan events relates to non-cash charges of $1.6 million and $3.2 million included in Other, net associated with the establishment of a retiree medical plan. The Company will recognize a non-cash charge related to such plan of $5.4 million ratably over the first 10 months of fiscal 2026.
(2) The tax impact for the above reconciling adjustments from GAAP net income to non-GAAP adjusted income from continuing operations, and the related adjusted EPS from continuing operations, is determined by comparing the Company's tax provision, including the reconciling adjustments, to the tax provision excluding such adjustments.
(3) Discrete and certain other tax provisions (benefits) primarily relate to the impact of a rate differential between the statutory and annual effective tax rates on items impacting the quarter.
Griffon uses adjusted EBITDA as a key metric in evaluating performance. Adjusted EBITDA, a non-GAAP measure, is defined as income before taxes from continuing operations, excluding interest income and expense, depreciation and amortization, strategic review charges, and non-cash impairment charges, as well as other items that may affect comparability, as applicable. Griffon believes this information is useful to investors. The following tables provides a reconciliation of net income to adjusted EBITDA:
For the Three Months Ended March 31,
For the Six Months Ended March 31,
(in thousands)
2026
2025
2026
2025
Net income
$
19,318
$
56,762
$
83,705
$
127,613
Less: Income (loss) from discontinued operations
(27,619
)
6,957
(18,804
)
18,672
Income from continuing operations
46,937
49,805
102,509
108,941
Net interest expense
21,133
23,616
42,889
48,356
Depreciation and amortization
10,063
9,593
19,581
19,091
Provision for income taxes
18,038
17,782
38,189
38,516
Impact of retirement plan events
1,609
—
3,218
—
Loss from debt extinguishment
—
—
556
—
Strategic review - retention and other
—
889
—
1,778
Adjusted EBITDA, continuing operations
$
97,780
$
101,685
$
206,942
$
216,682
Griffon believes free cash flow ("FCF", a non-GAAP measure) from continuing operations is a useful measure for investors because it demonstrates the Company's ability to generate cash from operations for purposes such as repaying debt, funding acquisitions and paying dividends. FCF from continuing operations is defined as net cash provided by operating activities from continuing operations less capital expenditures, net of proceeds. The following table provides a reconciliation of net cash provided by operating activities from continuing operations to FCF from continuing operations:
For the Six Months Ended March 31,
(in thousands)
2026
2025
Net cash provided by operating activities - continuing operations
$
118,314
$
139,697
Acquisition of property, plant and equipment
(17,652
)
(25,938
)
FCF - continuing operations
$
100,662
$
113,759
Net debt to EBITDA (Leverage ratio), a non-GAAP measure, is a key financial measure that is used by management to assess the borrowing capacity of the Company. The Company has defined its net debt to EBITDA leverage ratio as net debt (total principal debt outstanding net of cash and equivalents) divided by the sum of trailing twelve-month (“TTM”) adjusted EBITDA (as defined above) and TTM stock-based compensation expense. The following table provides a calculation of our net debt to EBITDA leverage ratio as calculated per our credit agreement:
(in thousands)
March 31,
2026
Cash and equivalents
$
109,672
Notes payable and current portion of long-term debt
$
8,018
Long-term debt, net of current maturities
1,394,836
Debt discount/premium and issuance costs
8,939
Total gross debt - continuing basis
1,411,793
Discontinued operations
332
Total gross debt including discontinued operations
$
1,412,125
Debt, net of cash and equivalents
$
1,302,453
TTM adjusted EBITDA
$
519,677
TTM stock-based compensation, including discontinued operations
27,828
TTM EBITDA, per debt compliance(1)
$
547,505
Leverage ratio
2.4x
______________________________
(1) Griffon defines EBITDA per bank compliance as operating results including discontinued operations and excluding interest income and expense, income taxes, depreciation and amortization, restructuring charges, debt extinguishment, net and acquisition related expenses, as well as other items that may affect comparability, as applicable, plus stock based compensation. See following table for calculation of TTM EBITDA, per debt compliance for the six months ended March 31, 2026. For the six months ended March 31, 2025 and year ended September 30, 2025, see the Company's previously reported earnings releases on Form 8-K furnished to the SEC.
The following table provides a reconciliation of adjusted EBITDA including stock-based compensation to TTM EBITDA, per debt compliance:
Year ended September 30,
For the Six Months Ended March 31,
TTM March 31,
2025(1)
2026(2)
2025(1)
2026
(in thousands)
Adjusted EBITDA
$
522,293
$
247,101
$
249,717
$
519,677
Add: Stock-based compensation expense
25,483
14,238
11,893
27,828
EBITDA, per debt compliance
$
547,776
$
261,339
$
261,610
$
547,505
______________________________ (1) As previously reported in the Company's earnings release on Form 8-K furnished to the SEC.
(2) The following table provides a reconciliation of adjusted EBITDA from continuing operations, including stock compensation to EBITDA, per debt compliance for the six months ended March 31, 2026:
For the Six Months Ended March 31,
(in thousands)
2026
Adjusted EBITDA:
Continuing operations
$
206,942
Discontinued operations
40,159
Total
$
247,101
Stock-based Compensation:
Continuing operations
13,758
Discontinued operations
480
Total
14,238
EBITDA, per debt compliance
$
261,339
The following tables provide a reconciliation of selling, general and administrative expenses for items that affect comparability for the three and six months ended March 31, 2026 and 2025:
For the Three Months Ended March 31.
For the Six Months Ended March 31,
(in thousands)
2026
2025
2026
2025
Selling, general and administrative expenses, as reported
$
104,643
$
107,461
$
213,963
$
214,507
% of revenue
24.8
%
25.2
%
24.4
%
24.7
%
Adjusting items:
Strategic review - retention and other
—
(889
)
—
(1,778
)
Selling, general and administrative expenses, as adjusted
Griffon (GFF - Free Report) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.46%. A quarter ago, it was expected that this garage door and building products maker would post earnings of $1.34 per share when it actually produced earnings of $1.45, delivering a surprise of +8.21%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Griffon, which belongs to the Zacks Diversified Operations industry, posted revenues of $421.86 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.17%. This compares to year-ago revenues of $611.75 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Griffon shares have added about 25.7% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Griffon?While Griffon has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Griffon was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $452.77 million in revenues for the coming quarter and $5.16 on $1.98 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Diversified Operations is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Star Equity Holdings (STRR - Free Report) , has yet to report results for the quarter ended March 2026.
This staffing company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +56.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Star Equity Holdings' revenues are expected to be $52.57 million, up 64.9% from the year-ago quarter.
Key Takeaways Griffon Q2 EPS topped estimates as revenues beat forecasts despite a 1.1% sales decline.GFF offset lower volume with favorable pricing and mix, helping support profitability.Company reaffirmed FY2026 outlook, targeting about $1.8 billion in continuing operations sales. Griffon Corporation (GFF - Free Report) reported second-quarter fiscal 2026 (ended March 2026) adjusted earnings of $1.05 per share, which beat the Zacks Consensus Estimate of 99 cents. The bottom line was stable on a year-over-year basis.
Total revenues of $421.9 million beat the consensus estimate of $413 million and decreased 1.1% year over year. The decline was attributable to lower volumes of 6%, partially offset by favorable price and mix of 5%.
GFF’s Operating ResultsEffective from the fiscal second quarter, Griffon declared its AMES U.S., Canada, UK and Australia businesses as discontinued operations. The company currently reports the continuing operations’ financial results as a single segment.
Margin ProfileGriffon’s cost of sales increased 0.7% year over year to $229.9 million. Selling, general and administrative expenses were down 2.7% year over year to $104.6 million. The gross margin decreased to 45.5% from 46.5% in the year-ago period.
Net income was $19.3 million, reflecting a decline of 66% from the prior-year quarter. The company’s adjusted EBITDA from continuing operations totaled $97.8 million, down 4% from the year-ago quarter.
GFF’s Balance Sheet & Cash FlowAt the end of the fiscal second quarter, Griffon had cash and cash equivalents of $109.7 million compared with $99 million at the end of fiscal 2025 (ended September 2025). Long-term debt, net of current maturities, was $1.39 billion at the end of the fiscal second quarter compared with $1.40 billion at fiscal 2025-end.
In the first six months of fiscal 2026, the company generated net cash of $118.3 million from operating activities compared with $139.7 million in the year-ago period.
Griffon paid out dividends of $21.2 million and repurchased shares worth $51 million in the same period. Exiting the fiscal second quarter, it had $247 million remaining under the share repurchase program.
In the first six months of fiscal 2026, free cash flow from continuing operations was $100.7 million and capital expenditures (net) were $17.6 million.
OutlookThe company has reaffirmed its fiscal 2026 financial guidance. For fiscal 2026 (ending September 2026), management anticipates net sales from continuing operations to be $1.8 billion.
It expects the adjusted EBITDA to be approximately $458 million. For the fiscal year, Griffon expects interest expense of $93 million and capital expenditures to be $50 million.
GFF’s Zacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the same space are discussed below:
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings missed the consensus estimate by 8.7% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 18.6%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.
Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 7.8%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3.6%.
CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 SharesMarketBeat
CocaCola Company (The) (NYSE:KO - Get Free Report) EVP Jennifer Mann sold 23,984 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the transaction, the executive vice president owned 157,400 shares of the company's stock, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
NYSE:KO
Read CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 Shares
2 hours ago
Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,054 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $60.37, for a total transaction of $15,759,829.98. Following the completion of the sale, the insider owned 2,671,855 shares in the company, valued at $161,299,886.35. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
NYSE:BROS
Read Dutch Bros (NYSE:BROS) Major Shareholder Sells $15,759,829.98 in Stock
2 hours ago
Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the transaction, the insider owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Large shareholders that own at least 10% of a company's shares are required to disclose their transactions with the SEC.
NYSE:BROS
Read Insider Selling: Dutch Bros (NYSE:BROS) Major Shareholder Sells 261,055 Shares of Stock
2 hours ago
Travis Boersma Sells 749,999 Shares of Dutch Bros (NYSE:BROS) StockMarketBeat
Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 749,999 shares of Dutch Bros stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $60.39, for a total transaction of $45,292,439.61. Following the completion of the sale, the chairman owned 2,671,855 shares of the company's stock, valued at $161,353,323.45. This represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Dutch Bros Inc. (NYSE:BROS - Get Free Report) Chairman Travis Boersma sold 750,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the sale, the chairman owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Investors interested in stocks from the Diversified Operations sector have probably already heard of Mitsui & Co. (MITSY) and Griffon (GFF). But which of these two stocks is more attractive to value investors?
Innovative clear-to-opaque window panels offer privacy on-demand for residential and commercial spaces
, /PRNewswire/ -- Clopay Corporation, a wholly-owned subsidiary of Griffon Corporation (NYSE: GFF) and North America's largest manufacturer of residential and commercial garage doors, has introduced C-Power™ enabled Click-to-Conceal™ Panels on its aluminum and glass Avante® and Avante® Sleek doors as well as commercial Models 904 and 906.
C-Power enabled doors use proprietary technology that continuously delivers power directly to the garage door sections, enabling the Click-to-Conceal Panels to switch from clear to opaque using a wireless remote.
Designed for both luxury homes and commercial environments, C-Power enabled Click-to-Conceal Panels transform the garage door into a responsive design element that adapts to the user's changing needs throughout the day, offering daylight and outdoor views when desired and privacy and security when needed.
The Ultimate Flex: Light, Privacy, and Control
For residential design, the door opens up new ways to use the garage as a flexible, light-filled extension of the home such as an office, gym or entertaining area. For builders and architects, it delivers an innovative, future-focused solution that elevates both the visual and functional appeal of a home.
"As garages continue to evolve into multi-use spaces, the door itself is becoming part of the design conversation. Traditional glass doors are a popular design choice because of their ability to connect indoor and outdoor spaces, yet they can raise concerns about visibility and security," said Heather Bender, Clopay's Senior Director of Product Marketing. "C-Power enabled Click-to-Conceal Panels provide a two-in-one solution previously unavailable on exterior-rated garage doors. Clients get the modern, open look they want, with built-in privacy control."
Performance-Driven Solutions for Commercial Projects
The same Click-to-Conceal Panels support a wide range of applications in commercial environments.
Automotive showrooms can display vehicles during business hours and obscure them after closing. Retailers can showcase merchandise while maintaining the option to conceal products to reduce theft risk. In restaurants, hospitality venues, event spaces and schools, the glass panels balance daylight, glare and safety, to satisfy both visual and functional design requirements.
"The ability to shift between clear and opaque adds operational flexibility without installing separate shading systems or curtains that can impede sight lines and require ongoing maintenance," Bender said.
The benefits don't stop at aesthetics. Energy efficiency and smart design are at the core of this product. When the glass is clear, it floods the space with natural light, reducing the need for artificial lighting during the day. Opaque panels block UV rays and limit heat gain to help regulate indoor temperatures and protect interiors from fading.
For added security, the panels automatically default to opaque when the power is off, keeping what's inside out of sight, and change to clear when activated.
Engineered for Durability and Clean Design
C-Power enabled Click-to-Conceal Panels are housed in a durable, weather-resistant 2-1/8" thick aluminum frame with a fully integrated power system. The wiring is concealed within the door sections for a clean appearance and simple installation.
The residential Avante and commercial Model 904 doors have a rectangular grid pattern while the Avante Sleek and Model 906 doors feature long, narrow horizontal panels with minimal stiles for wider, unobstructed views. The frames are available with or without insulation in multiple colors, including anodized finishes. Built-in WindCode® reinforcement is offered.
Glazing options include Clear/White Opaque and Gray Clear/Gray Opaque laminated or insulated tempered glass.
A Platform for Architects and Builders
With C-Power enabling technology, Clopay has expanded the role of the garage door in residential and commercial architecture. By combining dynamic glass, durable materials, and trusted performance, the Avante and Avante Sleek residential doors and commercial Models 904 and 906 offer a cohesive solution for projects that demand flexibility, privacy, and clean design.
"Clopay full-view garage doors with C-Power enabled Click-to-Conceal Panels offer the perfect blend of modern style and functionality," added Bender. "This is responsive architecture -- technology that enhances both form and function. It's a signature element that elevates any project."
For more information, visit www.clopaydoor.com.
About Clopay Corporation
Founded in 1964, Clopay Corporation ("Clopay") is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. The company sells residential and commercial overhead sectional doors through leading home center retail chains and a network of over 3,000 independent professional dealers under the brands Clopay®, Ideal Door®, and Holmes Garage Door Company®. Rolling steel doors and grilles for commercial, industrial, institutional, and retail use are sold under the Cornell®, Cookson®, and Clopay® brands.
Clopay is headquartered in Mason, Ohio, and operates four manufacturing facilities and 57 distribution centers. For more information, visit www.clopaydoor.com.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
The AMES North America, Australia, and United Kingdom businesses are classified as discontinued operations.
For more information on Griffon, please see the Company's website at www.griffon.com.
Forward-Looking Statements
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, industries in which Griffon Corporation (the "Company" or "Griffon") operates and the United States and global economies that are not historical are hereby identified as "forward-looking statements," and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "achieves", "should," "would," "could," "hope," "forecast," "management is of the opinion," "may," "will," "estimates," "intends," "explores," "opportunities," the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon's ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives (including the expanded CPP global outsourcing strategy announced in May 2023); the ability to identify and successfully consummate, and integrate, value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon's operating companies; the ability of Griffon's operating companies to expand into new geographic and product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations; increases in the cost or lack of availability of raw materials such as steel, resin and wood, components or purchased finished goods, including any potential impact on costs or availability resulting from tariffs; changes in customer demand or loss of a material customer at one of Griffon's operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon's businesses; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon's credit ratings; changes in international economic conditions including inflation, interest rate and currency exchange fluctuations; the reliance by certain of Griffon's businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon's businesses, which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon's ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of the businesses of certain of Griffon's operating companies; possible terrorist threats and actions and their impact on the global economy; effects of possible IT system failures, data breaches or cyber-attacks; the impact of pandemics, such as COVID-19, on the U.S. and the global economy, including business disruptions, reductions in employment and an increase in business and operating facility failures, specifically among our customers and suppliers; Griffon's ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company's Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Griffon (GFF - Free Report) closed the last trading session at $85.91, gaining 2.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $119 indicates a 38.5% upside potential.
The average comprises five short-term price targets ranging from a low of $115.00 to a high of $135.00, with a standard deviation of $8.94. While the lowest estimate indicates an increase of 33.9% from the current price level, the most optimistic estimate points to a 57.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in GFF. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why GFF Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.2%.
Moreover, GFF currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much GFF could gain, the direction of price movement it implies does appear to be a good guide.
On May 19, 2026, Griffon Corp GFF shares fell 3.7% to $79.78, continuing a downward trend that has seen the stock decline 9.1% over the past month. Over the last year, GFF has experienced a modest gain of 10.4%, but it remains significantly below its 52-week high of $97.58 and above its 52-week low of $65.01.
GF Value™ verdict: Current price is $79.78, which is 19.6% above the GF Value™ of $66.72.GF Score™ of 69/100 indicates an above-average overall rating.Insider activity shows that insiders bought $0.1 million worth of shares in the last three months, suggesting confidence in the company's future. Is GFF Overvalued or Undervalued? Griffon Corp's current price of $79.78 is significantly above its GF Value™ estimate of $66.72, indicating that the stock is approximately 19.6% overvalued. The GF Valuation label categorizes GFF as "Modestly Overvalued," which suggests that the current market price may not reflect the company's intrinsic value based on its historical trading multiples, past business growth, and future performance estimates. With a margin of safety absent, investors may face risks if the stock price adjusts to align more closely with its intrinsic value.
Given the GF Value™ assessment, GFF's current overvaluation could expose investors to a higher risk of price correction. It is essential to consider the potential implications of this overvaluation before making investment decisions, particularly in a fluctuating market.
How Does GFF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 613.7x 17.8x Forward P/E 15.4x - The current P/E (TTM) of 613.7x is dramatically above the 5-year median P/E of 17.8x, indicating that GFF is trading at a premium compared to its historical valuation. This stark contrast aligns with the GF Value™ verdict, which suggests that GFF is overvalued. The forward P/E of 15.4x does indicate a potential for improved valuation in the future, but the current P/E analysis confirms the risks associated with investing at this price point.
What Does GFF's GF Score™ Tell Us? Metric Rating GF Score™ 69/100 Financial Strength 4/10 Profitability 7/10 Growth 2/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 69/100 illustrates that Griffon Corp possesses an above-average overall rating. The strongest area is its profitability, rated 7/10, which indicates a solid ability to generate earnings relative to its peers. However, the growth rank of 2/10 suggests that GFF may face challenges in expanding its revenue and profit in the near future. The financial strength rating of 4/10 also highlights potential weaknesses in the company's balance sheet, which may limit its financial flexibility.
What Are Insiders Doing with GFF Stock? Recent insider activity at Griffon Corp has seen insiders purchasing a total of $0.1 million worth of shares over the last three months, with no selling reported. This buying trend may indicate that insiders believe the company's stock is undervalued or that they expect future growth. Such activity can be a positive signal for investors, suggesting confidence in GFF's ongoing performance and strategic direction.
What This Means for Investors Based on the GF Value™ analysis, Griffon Corp GFF is currently considered overvalued. With a market price of $79.78 and a GF Value™ of $66.72, the stock appears to be trading higher than its intrinsic value, presenting potential risks for investors in the current market environment.
For the complete analysis, visit the Griffon Corp GFF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GFF's GF Score™?
GFF's GF Score™ is 69/100, indicating an above-average rating based on several key financial metrics.
Is GFF overvalued or undervalued?
GFF is currently overvalued, with a market price of $79.78 compared to a GF Value™ of $66.72.
What is GFF's P/E ratio?
GFF's P/E (TTM) is 613.7x, which is significantly higher than its 5-year median P/E of 17.8x, confirming its current overvaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
NEW YORK--(BUSINESS WIRE)--Griffon Corporation (NYSE: GFF) (the “Company” or “Griffon”) today announced it has entered into a definitive agreement to sell its AMES Australasia business to a joint venture it is forming with an investment group led by the management of AMES Australasia with support from Australian financial investors.
Under the terms of the agreement, Griffon will receive $185 million at closing and $50 million in a subordinated note in the joint venture. Griffon will hold a 49% equity interest in the joint venture post-closing. The remaining 51% ownership of the joint venture will be held by an investment group led and controlled by Simon Hupfeld, who upon closing will become the Executive Chairman of the business.
“This joint venture will best position AMES Australasia to serve its valued customers while generating both immediate and longer-term value for Griffon shareholders,” said Ronald J. Kramer, Chairman and CEO of Griffon. “We have confidence this management team, which has grown the business from a modest provider of wheelbarrows to a category leader in home and lifestyle products for consumers and professionals, will continue its long track record of exceptional performance.”
“We are thrilled to embark on this next chapter for our business and the people behind it,” said Mr. Hupfeld. “This joint venture gives us the platform to accelerate the growth of the business while continuing to benefit from our strong partnership with Griffon. We are deeply committed to our customers, our people, our suppliers and the communities we serve, and we look forward to building on the strong foundation we have established together.”
The joint venture will be financed through committed debt financing, equity from the joint venture partners, and the Griffon subordinated note. This transaction is subject to customary closing conditions and is expected to be completed by Griffon’s fiscal year ending in September 2026.
Goldman Sachs & Co. LLC acted as financial advisor to Griffon and provided committed debt financing for the joint venture. Houlihan Lokey Capital, Inc. acted as financial advisor to Griffon’s Board. Clayton Utz acted as legal counsel to Griffon. Ashurst Australia acted as legal counsel to the investment group led by the management of AMES Australasia.
Forward-looking Statements
“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, the industries in which Griffon Corporation (the “Company” or “Griffon”) operates and the United States and global economies that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates,” “supports,” “plans,” “projects,” “expects,” “believes,” "achieves,” “should,” “would,” “could,” “hope,” “forecast,” “management is of the opinion,” “may,” “will,” “estimates,” “intends,” “explores,” “opportunities,” the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon’s ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives; the ability to identify and successfully consummate, and integrate, value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon’s operating companies; the ability of Griffon’s operating companies to expand into new geographic and product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations; increases in the cost or lack of availability of raw materials such as steel, resin and wood, components or purchased finished goods, including any potential impact on costs or availability resulting from tariffs; changes in customer demand or loss of a material customer at one of Griffon’s operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon’s businesses; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon’s credit ratings; changes in international economic conditions including inflation, interest rate and currency exchange fluctuations; the reliance by certain of Griffon’s businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon’s businesses, which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon’s ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of the businesses of certain of Griffon’s operating companies; possible terrorist threats and actions and their impact on the global economy; effects of possible IT system failures, data breaches or cyber-attacks; the impact of pandemics on the U.S. and the global economy, including business disruptions, reductions in employment and an increase in business and operating facility failures, specifically among our customers and suppliers; Griffon’s ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company’s Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
The AMES North America, Australia, and United Kingdom businesses are classified as discontinued operations.
For more information on Griffon, please see the Company’s website at www.griffon.com.
TORONTO & NEW YORK--(BUSINESS WIRE)--ONCAP, the lower mid-market private equity platform of Onex Corporation (TSX:ONEX), and Griffon Corporation (NYSE: GFF) (“Griffon”) announced today the launch of Veritage Brands (“Veritage”), a leading global provider of hand tools, home organization solutions, and lawn and garden products for professionals and consumers.
Veritage Brands was formed through a joint venture of Bellota Tools, Corona, and Burgon & Ball, formerly subsidiaries of the Venanpri Group (“Venanpri”), majority-owned by ONCAP, and Griffon’s AMES Companies (“AMES”) businesses in North America.
“Veritage Brands brings together global leaders in professional and consumer tools, home storage and organization solutions, and lawn and garden products,” said Michael Lay, Executive Chair at ONCAP. “Veritage Brands will be able to leverage the strengths of both organizations while streamlining operations and capturing the benefits of economies of scale. We are excited to work with our partners at Griffon to realize this vision.”
Veritage is comprised of leading professional and consumer brands including AMES, Bellota, Burgon & Ball, ClosetMaid, Corona, Garant, Razor-Back, and True Temper, serving customers in North, Central and South America, and Europe, and with major operating facilities located in the United States, Spain, Canada, Mexico, and Colombia.
Veritage is managed as a subsidiary of Venanpri, which, together with other affiliates of ONCAP, hold a 57% equity interest. Griffon Corporation participates in the governance and oversight of the joint venture as a 43% equity holder. Venanpri’s Agrisolutions business, including the Bellota Agrisolutions and Ingersoll brands, are not part of Veritage and will continue to be wholly owned by Venanpri.
“Veritage Brands brings together trusted, iconic brands that are highly respected in their home markets and share an almost 300-year legacy,” said Ronald J. Kramer, Chairman and CEO of Griffon. “The formation of Veritage Brands creates a leading provider of professional and consumer tools, home storage and organization solutions, and lawn and garden products with critical scale and global reach.”
Canaccord Genuity LLC acted as financial advisor and Torys LLP acted as legal counsel to ONCAP and Venanpri. Goldman Sachs & Co. LLC acted as financial advisor and Dechert LLP acted as legal counsel to Griffon Corporation.
Forward Looking Statements
This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance, or results to be materially different from those indicated in these forward-looking statements.
About ONCAP
Founded in 2000, ONCAP is the dedicated lower mid-market private equity platform of Onex Corporation, committed to investing in and partnering with North American headquartered businesses and their management teams in our core sectors of emphasis. Today, ONCAP operates with a team of 35 employees managing $3.7 billion in assets across offices in Toronto and New York. For more information on ONCAP and Onex, visit www.oncap.com and www.onex.com.
About ONEX
Onex invests and manages capital on behalf of its shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, banks, insurance companies, family offices and high-net-worth individuals. In total, Onex has approximately $55.8 billion in assets under management, of which $9.4 billion is Onex’ own investing capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.
Onex is listed on the Toronto Stock Exchange under the symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedarplus.ca.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
AMES Australia is classified as a discontinued operation.
For more information on Griffon, please see the Company’s website at www.griffon.com.
NEW YORK--(BUSINESS WIRE)--Griffon Corporation (NYSE: GFF) (the “Company” or “Griffon”) today announced the closing of the joint venture of Griffon’s AMES Companies (“AMES”) United States and Canada businesses with Venanpri Tools, the global professional and consumer tool provider majority owned by ONCAP, a subsidiary of Onex Corporation (TSX:ONEX).
The joint venture, named Veritage Brands, is a leading global provider of hand tools, home organization solutions, and lawn and garden products for professionals and consumers. More information about Veritage Brands is available in a joint release issued earlier today by ONCAP and Griffon.
Veritage Brands is managed as a portfolio company of ONCAP which, together with other affiliates, holds a 57% equity interest in the joint venture.
Griffon received $100 million cash consideration and $161 million of second lien debt from Veritage Brands for the sale of AMES U.S. and Canada. Griffon holds a 43% equity interest in the joint venture.
“Today’s closing represents a significant step forward for Veritage Brands and Griffon alike,” said Ronald J. Kramer, Chairman and CEO of Griffon. “With ONCAP as our partner, we believe Veritage Brands has a strong foundation to accelerate growth, expand its global presence, and continue delivering value for customers and stakeholders.”
“The completion of this transaction also further advances Griffon’s strategic evolution into a pure-play building products company,” added Mr. Kramer. “With leading positions across key residential and commercial product categories, we remain focused on driving organic growth, strategically investing in our businesses and continuing to deliver long-term value for shareholders.”
“The formation of Veritage Brands is an important step for unlocking shareholder value,” added Mr. Kramer. “Griffon is the largest North American provider of residential garage doors and commercial sectional doors, rolling steel doors, and grille products, as well as a leading brand of residential and commercial ceiling fans. We will continue to focus on growing our businesses organically, while prioritizing shareholder returns.”
Goldman Sachs & Co. LLC acted as financial advisor and Dechert LLP acted as legal counsel to Griffon for the formation of the joint venture. Canaccord Genuity LLC acted as financial advisor and Torys LLP acted as legal counsel to ONCAP and Venanpri.
Forward-looking Statements
“Safe Harbor” Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income (loss), earnings, cash flows, revenue, changes in operations, operating improvements, the industries in which Griffon Corporation (the “Company” or “Griffon”) operates and the United States and global economies that are not historical are hereby identified as “forward-looking statements” and may be indicated by words or phrases such as “anticipates,” “supports,” “plans,” “projects,” “expects,” “believes,” "achieves,” “should,” “would,” “could,” “hope,” “forecast,” “management is of the opinion,” “may,” “will,” “estimates,” “intends,” “explores,” “opportunities,” the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; Griffon’s ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives; the ability to identify and successfully consummate, and integrate, value-adding acquisition opportunities; increasing competition and pricing pressures in the markets served by Griffon’s operating companies; the ability of Griffon’s operating companies to expand into new geographic and product markets, and to anticipate and meet customer demands for new products and product enhancements and innovations; increases in the cost or lack of availability of raw materials such as steel, resin and wood, components or purchased finished goods, including any potential impact on costs or availability resulting from tariffs; changes in customer demand or loss of a material customer at one of Griffon’s operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon’s businesses; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon’s credit ratings; changes in international economic conditions including inflation, interest rate and currency exchange fluctuations; the reliance by certain of Griffon’s businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon’s businesses, which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies, such as litigation, regulatory and environmental matters; Griffon’s ability to adequately protect and maintain the validity of patent and other intellectual property rights; the cyclical nature of the businesses of certain of Griffon’s operating companies; possible terrorist threats and actions and their impact on the global economy; effects of possible IT system failures, data breaches or cyber-attacks; the impact of pandemics on the U.S. and the global economy, including business disruptions, reductions in employment and an increase in business and operating facility failures, specifically among our customers and suppliers; Griffon’s ability to service and refinance its debt; and the impact of recent and future legislative and regulatory changes, including, without limitation, changes in tax laws. Such statements reflect the views of the Company with respect to future events and are subject to these and other risks, as previously disclosed in the Company’s Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. Griffon undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Griffon Corporation
Griffon Corporation is a leading provider of residential and commercial building products. The Company is the largest North American manufacturer and marketer of garage doors under the Clopay, IDEAL and Holmes brands, and rolling steel door and grille products under the Clopay, Cornell, and Cookson brands. The Company is also a leading provider of residential, industrial, and commercial ceiling fans sold under the Hunter, Casablanca, and Jan Fan brands.
AMES Australia is classified as a discontinued operation.
For more information on Griffon, please see the Company’s website at www.griffon.com.
Griffon (GFF - Free Report) closed the last trading session at $90.78, gaining 9.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $119 indicates a 31.1% upside potential.
The mean estimate comprises five short-term price targets with a standard deviation of $8.94. While the lowest estimate of $115.00 indicates a 26.7% increase from the current price level, the most optimistic analyst expects the stock to surge 48.7% to reach $135.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in GFF. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in GFFThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 1.3%.
Moreover, GFF currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much GFF could gain, the direction of price movement it implies does appear to be a good guide.
