Griffon’s (GFF)  stock has offered investors the steady growth and value they look for in the portfolio and lands the Bull of the Day after being added to the Zacks Rank #1 (Strong Buy) list on Thursday.

The multinational conglomerate and holding company has an expanding presence in the home and building products market along with the consumer and professional products markets.

After hitting 52-week highs of $50 a share this week there could still be plenty of upside for Griffon’s stock with the Average Zacks Price Target of $64.25 a share being 29% above current levels.

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Performance Overview

Operating through several subsidiaries including The Ames Companies, Griffon’s stock has popped +39% in 2023 and has now soared over +150% in the last three years to largely outperform the broader indexes. 

As one of its most lucrative subsidiaries, The Ames Companies has operations in Massachusetts that date back to 1774 etching its name in American history while becoming a leading North American manufacturer and a global provider of branded tools and products for home storage, organization, and landscaping.

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Strengthening Outlook

Extending its impeccable price performance over the last few years was that Griffon was able to beat its fiscal fourth quarter earnings expectations by 22% last month.  

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Although Griffon’s current fiscal 2024 earnings are expected to dip -7% following a tougher-to-compete-against year, FY25 EPS is projected to rebound and soar 32% to $5.56 per share. More importantly, earnings estimate revisions for both FY24 and FY25 are nicely up over the last 60 days.

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This is very compelling considering Griffon’s stock trades at a 12X forward earnings multiple which is a lofty discount to the S&P 500’s 21.2X and its Zacks Diversified Operations Markets' 22.9X with some of the notable names in the space including General Electric (GE) , 3M (MMM), and Honeywell International (HON) .

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Bottom Line

In addition to sporting a Zacks Rank #1 (Strong Buy), Griffon’s stock has an “A” Zacks Style Scores grade for both Value and Growth. Checking many fundamental trading boxes there appears to be more room to run for GFF shares with Griffon offering a respectable 1.21% annual dividend yield as well.

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