Ultime notizie per Griffon (NYSE:GFF) Azioni

Griffon

Griffon Corp manufactures and markets residential, commercial and industrial garage doors to professional installing dealers and home center retail chains. It also provides non-powered landscaping products for homeowners and professionals. Its operating segments include Consumer and Professional Products and Home and Building Products. The company generates a majority of its revenue from the Home and Building Products segment.

Griffon Corp

Giftee Inc

4 analysts have expressed a variety of opinions on Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $94.25, along with a high estimate of $100.00 and a low estimate of $85.00. Surpassing the previous average price target of $86.50, the current average has increased by 8.96%.
<img src="https://www.benzinga.com/files/images/story/2024/1732107615_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
A clear picture of Griffon's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Timothy Wojs</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$100.00</td>
<td>$92.00</td>
</tr>
<tr>
<td>Trey Grooms</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Overweight</td>
<td>$100.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Timothy Wojs</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$92.00</td>
<td>$84.00</td>
</tr>
<tr>
<td>Trey Grooms</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$85.00</td>
<td>$85.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Griffon. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Griffon compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Griffon's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Griffon's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/GFF/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Griffon analyst ratings.</a>
<h2>All You Need to Know About Griffon</h2>
Griffon Corp manufactures and markets residential, commercial and industrial garage doors to professional installing dealers and home center retail chains. It also provides non-powered landscaping products for homeowners and professionals. Its operating segments include Consumer and Professional Products and Home and Building Products. The company generates a majority of its revenue from the Home and Building Products segment.
<h3>Financial Milestones: Griffon's Journey</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Griffon displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 2.85%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Griffon's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 9.47%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Griffon's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 27.87%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Griffon's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.63%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Griffon's debt-to-equity ratio surpasses industry norms, standing at 7.59. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>Analyst Ratings: What Are They?</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Evaluating Griffon: Insights From 4 Financial Analysts

Baird analyst Timothy Wojs maintains Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) with a Outperform and raises the price target from $92 to $100.

News

Price Target

Baird Maintains Outperform on Griffon, Raises Price Target to $100

Stephens &amp; Co. analyst Trey Grooms maintains Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) with a Overweight and raises the price target from $85 to $100.

Stephens & Co. Maintains Overweight on Griffon, Raises Price Target to $100

Editor&#8217;s note: The story has been updated to correct the adjusted EPS figure
Griffon Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) shares are trading higher after the company reported better-than-expected <a href="https://www.benzinga.com/pressreleases/24/11/b41936067/griffon-corporation-announces-annual-and-fourth-quarter-results" target="_blank" rel="noreferrer noopener">fourth-quarter earnings</a>.
The company reported quarterly revenue growth of 3% year-over-year to $659.67 million, beating the consensus of $641.24 million.
Adjusted EBITDA rose 13.4% YoY to $137.53 million, and the margin expanded 194 bps YoY to 20.9%. Adjusted EPS for the quarter rose to $1.47 from $1.19 YoY, <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">beating the consensus of $1.18.</a>
Fiscal 2024 revenue reached $2.6 billion, marking a 2% decline from the $2.7 billion reported last year. Adjusted EBITDA rose 2% to $513.6 million from $505.3 million.
Leverage remained at 2.6x net debt to EBITDA. Free cash flow was $326.1 million in fiscal 2024, with $379.3 million available under the credit facility.
The company returned $310 million to shareholders through dividends and share repurchases during 2024.
As of September 30, 2024, the company had $114.4 million in cash and $1.52 billion in total debt, resulting in net debt of $1.41 billion.
Buyback and Dividend: Griffon&#8217;s board approved an <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41936007/griffon-announces-new-400-million-share-buyback-authorization" rel="noreferrer noopener">additional $400 million share buyback</a> and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41935853/griffon-corporation-declares-quarterly-dividend" rel="noreferrer noopener">raised the quarterly dividend by 20%</a> to $0.18 per share. The dividend is payable on December 18 to shareholders of record as of the close of business on November 25.
&#8220;In fiscal 2025, we will continue to use our operating cash flow to support our capital allocation strategy with a focus on opportunistically repurchasing shares, reducing debt, supporting our regular quarterly dividend and investing in our businesses,&#8221; commented Ronald J. Kramer, Chairman and Chief Executive Officer.
During the quarter, GFF repurchased 1.1 million shares for $68.4 million at $65.09 per share. Fiscal 2024 repurchases totaled 4.8 million shares for $274.5 million at $57.52 per share.
2025 Outlook: Griffon expects revenue to match 2024 at $2.6 billion versus the consensus of $2.605 billion; adjusted EBITDA is forecasted to be between <a href="https://www.benzinga.com/calendars/guidance">$575 million and $600 million.</a>
The company expects free cash flow, including capital expenditures of&nbsp;$65 million, to exceed net income, with depreciation of&nbsp;$42 million&nbsp;and amortization of&nbsp;$23 million.
Price Action: GFF shares traded higher by 10.1% at $75.00 at the last check Wednesday.
Photo via Pete Linforth from Pixabay

Earnings

Equities

Guidance

Dividends

Buybacks

Griffon Surges Ahead: Strong Q4 Earnings Beat, Dividend Hike, Buyback & More (UPDATED)

2025 Outlook
We expect Griffon fiscal year 2025 revenue to be consistent with 2024 at $2.6 billion and adjusted EBITDA in a range of $575 million to $600 million, excluding unallocated costs of $55 million and charges related to strategic review retention costs of approximately $5 million. Free cash flow, including capital expenditures of $65 million, is expected to exceed net income, with depreciation of $42 million and amortization of $23 million. Fiscal year 2025 interest expense is expected to be $102 million, and Griffon's normalized tax rate is expected to be 28%.
From a segment perspective, we anticipate 2025 HBP and CPP revenue will both be in line with 2024. We anticipate 2025 EBITDA margin at HBP to continue to be in excess of 30% and at CPP to be in excess of 9%.

Griffon Sees FY25 Revenue To Be Consistent With 2024 At $2.6B Vs $2.66B Est.; Adjusted EBITDA In A Range Of $575M-$600M

Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) reported quarterly earnings of $1.47 per share which beat the analyst consensus estimate of $1.18 by 24.58 percent. This is a 23.53 percent increase over earnings of $1.19 per share from the same period last year. The company reported quarterly sales of $659.67 million which beat the analyst consensus estimate of $641.24 million by 2.87 percent. This is a 2.85 percent increase over sales of $641.38 million the same period last year.

CORRECTION: Griffon Q4 Adj EPS $1.47 Beats $1.18 Estimate, Sales $659.67M Beat $641.24M Estimate

WIIM

Griffon Corp shares are trading higher after the company reported better-than-expected Q4 financial results. Also, the company board authorized an additional $400 million in share repurchases.

The Board Of Directors Of Griffon Corporation Authorized The Repurchase Of An Additional $400M Worth Of Shares Of Griffon Common Stock

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Earnings Scheduled For November 13, 2024

Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) will release its quarterly earnings report on Wednesday, 2024-11-13. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Griffon to report an earnings per share (EPS) of $1.18.
The market awaits Griffon's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
<h3>Overview of Past Earnings</h3>
During the last quarter, the company reported an EPS missed by $0.07, leading to a 4.82% increase in the share price on the subsequent day.

<img src="https://www.benzinga.com/files/images/story/2024/1731420228_0.png" alt="eps graph" />
<h3>Griffon Share Price Analysis</h3>
Shares of Griffon were trading at $69.95 as of November 11. Over the last 52-week period, shares are up 57.76%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<h3>Analyst Observations about Griffon</h3>
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Griffon.
The consensus rating for Griffon is Outperform, derived from 2 analyst ratings. An average one-year price target of $88.5 implies a potential 26.52% upside.
<h3>Analyzing Analyst Ratings Among Peers</h3>
In this comparison, we explore the analyst ratings and average 1-year price targets of Hayward Holdings, Tecnoglass and Zurn Elkay Water, three prominent industry players, offering insights into their relative performance expectations and market positioning.
<ul>
<li>For Hayward Holdings, analysts project an Neutral trajectory, with an average 1-year price target of $17.1, indicating a potential 75.55% downside.</li>
<li>The consensus among analysts is an Outperform trajectory for Tecnoglass, with an average 1-year price target of $78.0, indicating a potential 11.51% upside.</li>
<li>For Zurn Elkay Water, analysts project an Neutral trajectory, with an average 1-year price target of $37.8, indicating a potential 45.96% downside.</li>
</ul>
<h3>Snapshot: Peer Analysis</h3>
Within the peer analysis summary, vital metrics for Hayward Holdings, Tecnoglass and Zurn Elkay Water are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Griffon</td>
<td>Outperform</td>
<td>-5.21%</td>
<td>$249.15M</td>
<td>19.30%</td>
</tr>
<tr>
<td>Hayward Holdings</td>
<td>Neutral</td>
<td>3.30%</td>
<td>$113.09M</td>
<td>1.21%</td>
</tr>
<tr>
<td>Tecnoglass</td>
<td>Outperform</td>
<td>13.09%</td>
<td>$109.23M</td>
<td>8.34%</td>
</tr>
<tr>
<td>Zurn Elkay Water</td>
<td>Neutral</td>
<td>2.91%</td>
<td>$189.40M</td>
<td>2.74%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Griffon ranks at the top for Gross Profit and Return on Equity among its peers. It is at the bottom for Revenue Growth.
<h3>All You Need to Know About Griffon</h3>
Griffon Corp manufactures and markets residential, commercial and industrial garage doors to professional installing dealers and home center retail chains. It also provides non-powered landscaping products for homeowners and professionals. Its operating segments include Consumer and Professional Products and Home and Building Products. The company generates a majority of its revenue from the Home and Building Products segment.
<h3>A Deep Dive into Griffon's Financials</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Griffon's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -5.21% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Griffon's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 6.34%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Griffon's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 19.3%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Griffon's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.71%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 7.51, caution is advised due to increased financial risk.
<a href="https://www.benzinga.com/quote/GFF/earnings">To track all earnings releases for Griffon visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Look Ahead: Griffon's Earnings Forecast

Baird analyst Timothy Wojs maintains Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) with a Outperform and raises the price target from $84 to $92.

Baird Maintains Outperform on Griffon, Raises Price Target to $92

3M Company MMM is scheduled to release <a href="https://www.zacks.com/stock/research/MMM/earnings-calendar?icid=quote-stock_overview-quote_nav_tracking-zcom-left_subnav_quote_navbar-earnings_dates_announcements">third-quarter</a> 2024 results on Oct. 22, before market open. 
The Zacks Consensus Estimate for earnings is pegged at $1.93 per share, reflecting an increase of 0.5% in the past 60 days. The consensus mark implies a 28% decline from the year-ago reported actuals. The Zacks Consensus Estimate for revenues is pegged at $6.1 billion, indicating a 26.6% decrease year over year.
<h3>Estimate Movement</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1b/81718.jpg?v=527876902" style="height:167px; width:624px" /> 
Image Source: Zacks Investment Research
It is worth noting that in April 2024, 3M completed the spin-off of its Health Care business into a separate public company. Notably, the spin-off is likely to have weighed on MMM&#39;s year-over-year top-line comparison in the quarter.
Despite the unfavorable impacts of the Health Care spin-off, the company&#39;s third-quarter performance is likely to have benefited from strength across its end markets, channel inventory normalization, solid operational execution and cost-saving initiatives. 
3M has an impressive earnings surprise history. The company&#39;s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.6%. In the last reported quarter, it delivered an earnings surprise of 16.3%.
<h2>3M&#39;s Earnings Surprise History</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9b/81719.jpg?v=1627260871" style="height:145px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Earnings Whispers</h3>
Our proven model predicts an earnings beat for 3M this time around. The combination of a positive <a href="https://www.zacks.com/earnings/earnings-surprise-predictions/">Earnings ESP</a> and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 
Earnings ESP: MMM has an Earnings ESP of +1.81% as the Most Accurate Estimate is pegged at $1.97 per share, which is higher than the Zacks Consensus Estimate of $1.93. You can uncover the best stocks before they&#39;re reported with our <a href="https://www.zacks.com/premium/esp-buy?adid=zp_article_espfilter&amp;icid=zpi_article_espfilter">Earnings ESP Filter</a>. 
Zacks Rank: 3M presently carries a Zacks Rank of 3. You can see <a href="https://www.zacks.com/stocks/buy-list/?ADID=zp_1link&amp;ICID=zpi%20_1link">the complete list of today&#39;s Zacks #1 Rank stocks here</a>.
<div class="chart_embed">
<h3>3M Company Price and EPS Surprise</h3>
<a href="https://www.zacks.com/stock/chart/MMM/price-eps-surprise?icid=chart-MMM-price-eps-surprise"><img alt="3M Company Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/16/1729257407.png" style="height:302px; width:624px" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/MMM/price-eps-surprise?icid=chart-MMM-price-eps-surprise">3M Company price-eps-surprise</a> | <a href="https://www.zacks.com/stock/quote/MMM?icid=chart-MMM-price-eps-surprise">3M Company Quote</a>
</div>
<h3>Factors Shaping Quarterly Performance</h3>
Strength in electronics, automotive, aerospace, commercial branding and transportation end markets is expected to have augmented the Transportation and Electronics segment&#39;s revenues in the third quarter. Continued channel inventory normalization, supported by strong growth in electronics demand, is likely to have driven its performance. Also, solid demand for its products in the automotive electrification market, supported by an increase in auto OEM (original equipment manufacturer) build rates, might have been a tailwind for the segment. 
Improvement in demand across end markets is anticipated to have been a tailwind for 3M&#39;s industrial adhesives &amp; tapes, personal safety and automotive aftermarket businesses under the Safety and Industrial segment. However, weakness across the abrasives and industrial specialties markets is likely to have been a spoilsport. The Zacks Consensus Estimate for Safety and Industrial segment revenues is pegged at $2.79 billion, indicating a 1.4% increase from the year-ago number. 
The company is expected to have benefited from its restructuring actions, including headcount reduction, which are likely to have reduced costs and improved margins in the quarter. Its restructuring savings and spending discipline are also likely to have boosted its margins and profitability. 
Despite the positives, weakness in 3M&#39;s packaging and expression as well as home and auto care businesses is likely to have dragged its performance. Lower consumer retail discretionary spending on hardline goods is likely to hurt its Consumer segment&#39;s results. The consensus mark for the Consumer segment&#39;s revenues is pegged at $1.31 billion, indicating a 0.8% decline from the year-ago number. 
Given the company&#39;s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is also likely to have hurt 3M&#39;s overseas business.
<h3>Price Performance &amp; Valuation</h3>
MMM&#39;s shares have exhibited an uptrend in the past three months, outperforming its peers and the Zacks <a href="https://www.zacks.com/stocks/industry-rank/industry/diversified-operations-48">Diversified Operations</a> industry. The conglomerate giant&#39;s shares have surged 30.6%, outperforming the industry&#39;s and the S&amp;P 500&#39;s growth of 1.8% and 5.6%, respectively. The company&#39;s peers Honeywell International Inc. HON and Federal Signal Corporation FSS have gained 2.3% and 2.4%, respectively, in the same period.
<h2>MMM Outperforms Industry, S&amp;P 500 &amp; Peers</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/68/81720.jpg?v=857223673" style="height:294px; width:624px" /> 
Image Source: Zacks Investment Research
In terms of valuation, MMM&#39;s forward 12-month price-to-earnings (P/E) is 17.55X, a premium to its industry average of 16.17X. This indicates that investors will be paying a higher price than the company&#39;s expected earnings growth compared with its peers. Also, the stock is overvalued compared with its peer, Griffon Corporation GFF, which is trading at 11.88X.
<h2>Price-to-Earnings (Forward 12 Months)</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/03/81722.jpg?v=1727293138" style="height:230px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Investment Thesis</h3>
3M&#39;s robust and diversified portfolio encompassing industrial abrasives, automotive components, electrical products and packaging materials, along with strength in its segments, is likely to drive its growth. The company&#39;s ongoing restructuring actions are expected to improve margins and cash flow in the long run. It expects these actions to be completed by 2025 and yield annual pre-tax savings. Also, its commitment to rewarding its shareholders handsomely through dividend payments and share buybacks adds to its strength. 
However, weakness in the packaging and expression as well as home and auto care businesses remains concerning for its near-term performance. The company has been subject to several litigations, including earplug lawsuits. It has committed substantial funds to resolve these disputes as ongoing litigation might lead to additional expenses.
Also, a high debt level, if not controlled, is likely to be a drag on 3M&#39;s profitability. Exiting the second-quarter 2024, the company&#39;s long-term debt was high at $11.8 billion. This is evident from its long-term debt-to-capital ratio compared with its industry.
<h2>MMM&#39;s Long-Term Debt-to-Capital</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/fb/81723.jpg?v=1244707954" style="height:259px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Should You Buy 3M Stock Now?</h3>
Investors interested in 3M stock should wait for a better entry point, considering its premium valuation and the challenges it is facing in the retail market. Also, a <a href="https://www.zacks.com/style-scores-education/">VGM Score</a> of D does not reflect major strength in the stock. 
One should monitor the stock&#39;s developments closely before buying it, as an erroneous and hasty decision could affect portfolio gains. Therefore, it might be prudent to wait for MMM&#39;s earnings report before making an investment decision. 
However, those who already own this stock may stay invested as the company&#39;s upbeat estimates, strong share price returns and strength across most end markets offer solid long-term prospects.
<a href="https://www.zacks.com/stock/news/2353219/should-3m-stock-be-part-of-your-portfolio-ahead-of-q3-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2353219">To read this article on Zacks.com click here.</a>
<a href="https://www.zacks.com/">Zacks Investment Research</a>

Trading Ideas

General

Should 3M Stock Be Part Of Your Portfolio Ahead Of Q3 Earnings?

Stephens &amp; Co. analyst Trey Grooms reiterates Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) with a Overweight and maintains $85 price target.

Reiteration

Stephens & Co. Reiterates Overweight on Griffon, Maintains $85 Price Target

Baird analyst Timothy Wojs maintains Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) with a Outperform and lowers the price target from $86 to $84.

Baird Maintains Outperform on Griffon, Lowers Price Target to $84

Griffon Reaffirmed FY24 Outlook: Revenue Of $2.65B Vs. Consensus Of $2.657B, Adjusted EBITDA Of $555M

Griffon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) reported quarterly earnings of $1.24 per share which missed the analyst consensus estimate of $1.31 by 5.34 percent. The company reported quarterly sales of $647.800 million which missed the analyst consensus estimate of $688.940 million by 5.97 percent. This is a 5.21 percent decrease over sales of $683.430 million the same period last year.

Earnings Misses

Griffon Q3 2024 Adj. EPS $1.24 Misses $1.31 Estimate, Sales $647.800M Miss $688.940M Estimate

Griffon Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gff#NYSE">GFF</a>) is expected to release third-quarter fiscal 2024 (ended Jun 30, 2024) results on Aug 7, before market open.
The company&#39;s earnings beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 33.5%. In the last reported quarter, its earnings of $1.35 per share surpassed the Zacks Consensus Estimate of 94 cents by 43.6%.
The consensus estimate for revenues is pegged at $711 million, indicating an increase of 4.1% from the year-ago quarter&#39;s reported number. The consensus estimate for earnings of $1.46 per share indicates an increase of 13.2% from the year-earlier level.
Let&#39;s see how things have shaped up for Griffon this earnings season.
<h3>Factors Likely to Influence Results</h3>
Griffon&#39;s fiscal third-quarter performance is likely to have been aided by increased demand for housing, higher repair and remodel activities and solid commercial construction demand.
The Home and Building Products (&quot;HBP&quot;) segment is expected to witness higher revenues on the back of improved customer orders, and favorable pricing and mix in residential markets. The Zacks Consensus Estimate for the HBP segment&#39;s revenues is pegged at $413 million, which indicates an increase of 3% from the year-ago reported number.
The Consumer and Professional Products (&quot;CPP&quot;) segment has been undergoing restructuring changes for the expansion of its global sourcing strategy to include material handling, long-handled tools, and wood storage and organization product lines. With the transition of these product lines to an asset-light structure, CPP&#39;s operations are expected to have benefited from a more flexible and cost-effective sourcing model.
Increased demand for products in Australia and elevated customer inventory levels are also likely to have driven segmental revenues. However, the segment&#39;s performance is likely to have been weak due to lower volume on account of soft consumer demand in North America and the United Kingdom.
Given GFF&#39;s substantial international operations, foreign-currency woes are likely to have hurt its top line. Also, high costs associated with restructuring actions are likely to have dented its bottom line.
<div class="chart_embed">
<h3>Griffon Corporation Price and EPS Surprise</h3>
<h3><img alt="Griffon Corporation Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/7b/1722868725.png" style="height:263px; width:538px" title="" /></h3>
Griffon Corporation price-eps-surprise | Griffon Corporation Quote
</div>
<h3>Earnings Whispers</h3>
Our proven model does not conclusively predict an earnings beat for GFF this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: GFF has an Earnings ESP of 0.00% as both the Most Accurate Estimate and Zacks Consensus Estimate are pegged at $1.46 per share.
Zacks Rank: GFF presently carries a Zacks Rank of 3.
<h3>Stocks to Consider</h3>
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Atkore Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/atkr#NYSE">ATKR</a>) has an Earnings ESP of + 0.62% and a Zacks Rank of 3 at present.
The company is scheduled to release second-quarter results on Aug 6. Atkore&#39;s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 15.4%.
Emerson Electric Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/emr#NYSE">EMR</a>) has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is slated to release fiscal third-quarter (ended June 2024) results on Aug 7.
Emerson&#39;s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark in one, the average surprise being 10.7%.
Deere &amp; Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/de#NYSE">DE</a>) has an Earnings ESP of +0.18% and a Zacks Rank of 3 at present. It is slated to release fiscal third-quarter (ended July 2024) results on Aug 15.
Deere&#39;s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16%.
<a href="https://www.zacks.com/stock/news/2316273/griffon-gff-gears-up-to-report-q3-earnings-what-to-expect?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2316273">To read this article on Zacks.com click here.</a>

Markets

ATKR

Griffon Gears Up to Report Q3 Earnings: What to Expect

ALLE

ROCK

UFPI

Shares of construction and building product companies are trading higher after store sales of building material and garden supplies rose 1.4% in June.

Griffon's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>) short percent of float has fallen 23.62% since its last report. The company recently reported that it has 2.06 million shares sold short, which is 7.08% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.0 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Griffon Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721048417_0_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Griffon has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Griffon's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Griffon's peer group average for short interest as a percentage of float is 4.04%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(GFF) - Analyzing Griffon's Short Interest

Markel Group Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mkl#NYSE">MKL</a>) has been gaining momentum on the back of new business volume, strong retention levels, an improving rate environment, higher interest income on cash equivalents, strategic buyouts and favorable growth estimates.
<h3>Growth Projections</h3>
The Zacks Consensus Estimate for Markel Group&#39;s 2024 revenues is pegged at $14.95 billion, implying a year-over-year improvement of 4.6%.
The consensus estimate for 2025 earnings per share and revenues indicates an increase of 21% and 5.6%, respectively, from the corresponding 2024 estimates.
Earnings have grown 46.2% in the past five years, better than the industry average of 14.4%.
<h3>Earnings Surprise History</h3>
Markel Group has a decent earnings surprise history. It beat estimates in two of the last four quarters and missed twice, the average being 33.41%.
<h3>Northbound Estimate Revision</h3>
The Zacks Consensus Estimate for 2024 and 2025 has moved 2% and 1.9% north, respectively, in the past 60 days, reflecting analyst optimism.
<h3>Zacks Rank &amp; Price Performance</h3>
MKL currently carries a Zacks Rank #3 (Hold). The stock has gained 11.2% against the industry&#39;s decline of 5.6% year to date.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c6/70151.jpg?v=2105147789" />
Image Source: Zacks Investment Research
<h3>Return on Equity (ROE)</h3>
Markel Group&#39;s trailing 12-month ROE was 11.2%, up 310 basis points year over year. ROE reflects its efficiency in using its shareholders&#39; funds.
<h3>Business Tailwinds</h3>
MKL has been generating improved premiums. An improvement in new business volume, strong retention levels, continued increases in rates and expanded product offerings should help the insurer retain the momentum.
Investment income should continue to benefit from an improving rate environment, higher interest income on cash equivalents, fixed maturity securities and short-term investments due to higher yields.
Markel Group considers strategic buyouts a prudent approach to ramp up its growth profile. Acquisitions have helped the company enhance its surety capabilities, ramp up Markel Ventures&#39; revenues and expand its reinsurance product offerings. The insurer has been pursuing acquisitions to achieve profitable growth in insurance operations and create additional value on a diversified basis in Markel Ventures&#39; operations.
Higher revenues at construction services and transportation-related businesses due to a combination of increased demand, higher prices and growth, as well as a rise in production at one of the equipment manufacturing businesses are expected to boost operating revenues. The increase also reflected a full-year contribution from Metromont.
Banking on a strong capital position, the insurer has engaged in share buybacks. In the first quarter of 2024, MKL doubled its share buyback to $161 million, as its shares traded at a discount. The company has a share repurchase program authorized by the board to buy back up to $750 million of shares. As of Mar 31, 2024, $553.5 million remained available for repurchases under the program. In 2023, the company repurchased shares for $445 million.
However, Markel Group is exposed to catastrophe loss, inducing volatility in underwriting results. Exposure to cat loss always remains a concern, given its unprecedented nature. Also, the company has been experiencing an increase in operating expenses due to higher losses and loss adjustment expenses, underwriting, acquisition and insurance expenses. MKL should strive to ensure that growth in total revenues outpaces the rise in expenses. Otherwise, the operating margin is likely to suffer.
<h3>Stocks to Consider</h3>
Some better-ranked stocks from the Diversified Operations industry are Griffon Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gff#NYSE">GFF</a>), Carlisle Companies Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/csl#NYSE">CSL</a>) and ITT Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/itt#NYSE">ITT</a>). While Griffon sports a Zacks Rank #1 (Strong Buy), Carlisle and ITT carry a Zacks Rank #2 (Buy) each at present.
Griffon delivered a four-quarter average earnings surprise of 33.45%. Year to date, GFF has rallied 6.2%.
The Zacks Consensus Estimate for GFF&#39;s 2024 and 2025 earnings implies year-over-year growth of 10.1% and 20.6%, respectively.
Carlisle delivered a four-quarter average earnings surprise of 16.97%. Year to date, CSL has gained 29.8%.
The Zacks Consensus Estimate for CSL&#39;s 2024 and 2025 earnings implies year-over-year growth of 28.4% and 8.9%, respectively.
ITT beat earnings estimates in three of the last four quarters and matched in the one, the average being 6.49%. Shares of ITT have risen 6.3% year to date.
The Zacks Consensus Estimate for ITT&#39;s 2024 and 2025 earnings implies year-over-year growth of 12.2% and 13.7%, respectively.
<a href="https://www.zacks.com/stock/news/2296572/should-you-retain-markel-group-mkl-stock-in-your-portfolio?cid=CS-BENZ-FT-analyst_blog|rank_focused-2296572">To read this article on Zacks.com click here.</a>

Earnings Beats

Should You Retain Markel Group Stock in Your Portfolio?

Griffon Corporation (GFF) delivered strong financial results for the fourth quarter and fiscal year of 2024, beating analysts' estimates driven by its strengthening profitability, strategic initiatives, and growing industry demand. So, should you buy or hold this stock? Read more to find out... Griffon Corporation (<a href="https://stocknews.com/stock/GFF/">GFF</a>), a leading provider of consumer and professional, and home and building products, reported solid fourth quarter and fiscal year 2024 results, which ended on September 30, 2024. The company's total revenue of $659.67 million for the fourth quarter surpassed the consensus estimate of $641.24 million. Also, its adjusted EPS was $1.47, compared to analysts' expectations of $1.18.
During the fiscal year, the company was able to expand its operations through strategic initiatives. Also, the consistent performance of its Home and Building Products segment, coupled with improving Consumer and Professional Products segment profitability, benefited its financial performance.
Through its strong performance, Griffon was also able to generate $326 million of free cash flow and return to its shareholders in the form of dividends and share repurchases. Through its subsidiaries, the company is widening its horizons and opening new prospects of growth for the future.
According to a report by Market Research Report, the construction materials market is forecasted to grow to a <a href="https://www.marketresearchfuture.com/reports/construction-materials-market-12121">staggering $1.82 trillion by 2032</a> at a CAGR of 4.2%. Factors like government initiatives promoting smart cities, infrastructural development, and environmentally friendly building techniques are driving and enhancing market growth.
For the fiscal year 2025, GFF expects revenue of $2.6 billion, and its adjusted EBITDA is expected to range from $575 million to $600 million, where its 2025 HBP and CPP segment revenue will both be in line with 2024. The company projects 2025 EBITDA margin at HBP to continue to be in excess of 30% and at CPP to be in excess of 9%.
Shares of GFF have gained 17.5% over the past six months to close its last trading session at $78.49. The stock has also soared 45.1% over the past year.
Let's look at factors that could influence GFF's performance in the upcoming months.
Recent Developments
On July 1, GFF's subsidiary, The AMES Companies, Inc., acquired Pope, a leading Australian provider of residential watering products, from The Toro Company (TTC), marking AMES's seventh acquisition in Australia since 2013. The acquisition expanded the company's product portfolio in the Australian market. Pope is projected to contribute approximately $25 million in annualized revenue.
Solid Financials
For the fourth quarter that ended September 30, 2024, GFF's total revenues increased 2.8% year-over-year to $659.67 million. Its adjusted <a href="https://www.investopedia.com/terms/g/grossprofit.asp">gross profit</a> grew 7.8% from the year-ago value to $271.05 million. The company's income from operations rose 40.6% from the prior year's quarter to $111.67 million.
Furthermore, the company's adjusted net income and adjusted EPS came in at $70.94 million and $1.47, up 12.5% and 23.5% from the prior year's quarter, respectively. The company's adjusted EBITDA of $137.53 million indicates growth of 13.4% year-over-year.
Also, GFF's cash and equivalents stood at $114.44 million as of September 30, 2024, compared to $102.89 million as of September 30, 2023.
Robust Historical Growth
GFF's revenue grew at a CAGR of 4.9% over the past three years, while its EBITDA improved at a CAGR of 26.9%. Its EBIT increased at a CAGR of 31.7% over the same period, while the company's net income and EPS grew at respective CAGRs of 38.4% and 41.7% over the same time frame.
Further, the company's normalized net income increased at a CAGR of 37.5% over the same timeframe.
Favorable Analyst Estimates
Analysts expect GFF's revenue for the third quarter (ending June 2025) to come in at $667.64 million, indicating an increase of 3.1% year-over-year. The consensus EPS estimate of $1.54 for the same period reflects a 24% year-over-year improvement. Moreover, the company has maintained an impressive earning history, having topped the consensus revenue and EPS in three of the trailing four quarters.
For the fiscal year (ending September 2026), the company's revenue and EPS are anticipated to grow 3.1% and 17.8% year-over-year to $2.70 billion and $6.52, respectively.
High Profitability
GFF's trailing-12-month EBIT margin of 16.79% is 60.8% higher than the 10.44% industry average. Its trailing-12-month net income margin of 8% is 22.7% higher than the industry average of 6.52%. Likewise, the stock's trailing-12-month gross profit margin of 40.26% is 27.6% higher than the industry average of 31.55%.
Furthermore, the stock's trailing-12-month ROCE, ROTC, and ROTA of 77.72%, 14.13%, and 8.85% are higher than the 13.48%, 7.15%, and 5.28% industry average, respectively.
Lower Valuation
In terms of forward non-GAAP P/E, GFF is currently trading at 14.18x, 32.4% lower than the industry average of 20.98x. The stock's forward EV/EBITDA and Price/Sales of 10.06x and 1.43x are lower than the industry averages of 12.32x and 1.55x, respectively.
Additionally, the stock's forward EV/EBIT and Price/Cash Flow of 11.52x and 10.29x are 33.5% and 36.5% lower than the industry averages of 17.32x and 16.20x, respectively.
POWR Ratings Reflect Promise
GFF's sound fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, translating to a Strong Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. GFF has a B grade for Value, which is consistent with its lower valuation. The stock has a B grade for Growth, which is in sync with its solid financial performance and historical growth.
Also, the stock has a B grade for Quality, justified by its higher than industry profitability.
GFF has topped among the 42 stocks in the B-rated <a href="https://stocknews.com/category/industrial-building-materials/">Industrial – Building Materials</a> industry.
Beyond what I have stated above, we have also given GFF grades for Momentum, Sentiment, and Stability. Get access to all the GFF ratings <a href="https://stocknews.com/stock/GFF/">here</a>.
Bottom Line
GFF reported solid financial results in the last reported quarter. Further, the company's long-term prospects appear promising, driven by its capacity expansion, strategic acquisitions, and investments.
Moreover, the board of directors of GFF returned a total of $310 million through a quarterly dividend of $0.18 per share and raised share repurchases. This reflects its sound financial standing in the year.
Given GFF's solid financials, accelerating profitability, and lower valuation, investing in the stock could be suitable.
How Does Griffon Corporation (GFF) Stack Up Against Its Peers?
While GFF has an overall POWR Rating of A, investors could also check out these other stocks within the B-rated <a href="https://stocknews.com/category/industrial-building-materials/">Industrial – Building Materials</a> industry with A (Strong Buy) or B (Buy) ratings: Daikin Industries Ltd. ADR (<a href="https://stocknews.com/stock/DKILY/">DKILY</a>), Apogee Enterprises, Inc. (<a href="https://stocknews.com/stock/APOG/">APOG</a>), and Cemex, S.A.B. de C.V. Sponsored ADR (<a href="https://stocknews.com/stock/CX/">CX</a>).
For exploring more A and B-rated industrial stocks, <a href="https://stocknews.com/category/industrial-building-materials/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
GFF shares were trading at $78.96 per share on Monday afternoon, up $0.47 (+0.60%). Year-to-date, GFF has gained 30.70%, versus a 29.02% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/gff-dkily-apog-cx-is-griffon-corporations-diversified-portfolio-a-reason-to-buy-the/>Is Griffon Corporation's Diversified Portfolio a Reason to Buy the Stock?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Griffon Corporation's Diversified Portfolio a Reason to Buy the Stock?

With the boom in population and expanding urbanization, the building and construction industry is booming. In this ever-evolving dynamic sector, fundamentally robust infrastructure stocks Owens Corning (OC), United States Lime & Minerals (USLM), and Griffon Corporation (GFF) could be solid picks for 2025. Read more... The global infrastructure industry is experiencing significant growth, driven by rising demand from infrastructure investments, government initiatives, and sustainability initiatives. So, quality stocks such as Owens Corning (<a href="https://stocknews.com/stock/OC/">OC</a>), United States Lime &amp; Minerals (<a href="https://stocknews.com/stock/USLM/">USLM</a>), and Griffon Corporation (<a href="https://stocknews.com/stock/GFF/">GFF</a>) present promising investment opportunities as they explore new technologies and sustainable materials to boost efficiency and meet market demands.
Population growth and urbanization are driving demand for infrastructure, spurring investments in housing, transportation, utilities, and urban upgrades to support expanding cities and growing mobility needs. Moreover, companies are focusing on enhancing productivity and reducing environmental impact by adopting low-carbon solutions and green building practices.
In addition, the growth of the building materials industry is fueled by the expanding demand for infrastructure projects across sectors like manufacturing, education, and healthcare. The market size is expected to grow from $1.35 trillion in 2024 to $2 trillion by 2034 at a <a href="https://www.precedenceresearch.com/building-materials-market">CAGR of 4%</a>.
Furthermore, the Biden-Harris Administration's announcement of <a href="https://thehill.com/homenews/administration/4739630-biden-administration-grants-infrastructure/">$1.8 billion in grants</a> for 148 infrastructure projects across the United States illustrates the government's commitment to revitalizing this vital sector. The funding could impact various states and support the development of essential infrastructure in the coming years.
Considering these positive developments, let's delve deeper into <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> stocks:
Stock #3: United States Lime &amp; Minerals, Inc. (<a href="https://stocknews.com/stock/USLM/">USLM</a>)
USLM specializes in producing lime and limestone products, including quicklime, hydrated lime, lime slurry, and pulverized limestone. These products serve diverse end-users, such as construction contractors, industrial manufacturers, environmental facilities, oil and gas service companies, and poultry producers.
On December 13, USLM paid a regular quarterly cash dividend of $0.05 per share on the company's common stock. It pays an annual dividend of $0.20, which translates to a <a href="https://www.investopedia.com/terms/d/dividendyield.asp">dividend yield</a> of 0.14% at the prevailing price levels.
During the fiscal third quarter that ended September 30, 2024, USLM's revenues increased 19.4% year-over-year to $89.43 million. Its operating profit grew 60.2% from the year-ago value to $38.14 million. In addition, the company's net income and income per share came in at $33.35 million and $1.16, up 60.9% and 58.9% over the prior-year quarter, respectively.
Over the past year, the stock has gained 217.9% to close the last trading session at $144.18. It soared 213% year-to-date.
USLM's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
USLM has an A grade in Quality and a B in Growth and Momentum. It is ranked #12 out of 42 stocks in the <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> industry.
Beyond what we have stated above, we also have given USLM grades for Value, Stability, and Sentiment. Get all the USLM's ratings <a href="https://stocknews.com/stock/USLM/">here</a>.
Stock #2: Owens Corning (<a href="https://stocknews.com/stock/OC/">OC</a>)
OC manufactures building materials across Roofing, Insulation, and Composites segments, offering products like asphalt shingles, insulation solutions, and glass fiber reinforcements. These serve industries including construction, automotive, energy, and retail through distributors, contractors, and manufacturers.
On December 5, OC announced a 15% increase in its quarterly cash dividend to $0.69 per share. The dividend will be paid on January 17, 2025. It pays an annual dividend of $2.76, which translates to a dividend yield of 1.44% at the prevailing price levels.
In the fiscal third quarter ended September 30, 2024, OC's net sales increased 22.9% year-over-year to $ 3.05 billion. Its operating income grew 10.2% from the year-ago value to $ 509 million. In addition, the company's adjusted earnings and adjusted EPS stood at $385 million and $4.38, up 1.3% and 4.8% over the prior-year quarter, respectively.
Street expects OC's revenue and EPS for the year ending December 31, 2024, to increase 13.6% and 7.4% year-over-year to $ 10.99 billion and $15.49, respectively. It surpassed the consensus EPS estimates in all of the trailing four quarters.
Shares of OC have gained 24.4% over the past year and is up 25% year-to-date to close the last trading session at $185.26.
OC's POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
OC has a B grade in Growth and Momentum. It is ranked #9 in the same industry.
To access OC's Value, Stability, Sentiment, and Quality ratings, click <a href="https://stocknews.com/stock/OC/">here</a>.
Stock #1: Griffon Corporation (<a href="https://stocknews.com/stock/GFF/">GFF</a>)
GFF offers products such as garage doors, fire doors, and shutters for construction and remodeling, along with tools, garden equipment, home organization solutions, and cleaning products, catering to both consumer and professional markets. It operates globally through two segments: Home and Building Products; and Consumer and Professional Products.
On November 134, GFF announced a regular quarterly cash dividend of $0.18 per share, payable on December 18. It pays an annual dividend of $ 0.72, which translates to a dividend yield of 0.92% at the prevailing price levels.
On November 13, GFF announced that it had authorized the repurchase of an additional $400 million worth of shares of GFF common stock. From April 2023 through November 12, GFF repurchased 9.4 million shares, representing 16.4% of its outstanding shares, for a total of $458 million, with an average price of $48.74 per share.
GFF's revenue increased 2.9% year-over-year to $ 659.67 million in the fiscal fourth quarter that ended on September 30, 2024. Its income from operations came in at $111.67 million, up 40.6% year-over-year. In addition, the company's adjusted net income reached $ 70.94 million, up 12.5% from the same quarter last year, and adjusted EPS was $1.47, indicating an increase of 23.5% from the prior-year quarter.
Street expects GFF's revenue for the fiscal first quarter of 2025 (ending December 31, 2024) to increase year-over-year to $ 637.58 million. Its EPS for the same quarter is likely to increase 11.6% year-over-year to $1.19. In addition, it surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
Shares of GFF have gained 38.8% over the past year and is up 28.8% year-to-date to close the last trading session at $78.52.
GFF's POWR Ratings reflect its robust outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Value, Momentum, and Quality. It tops the same industry.
Click <a href="https://stocknews.com/stock/GFF/">here</a> to see GFF's ratings for Stability and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>
<hr />
OC shares were unchanged in premarket trading Tuesday. Year-to-date, OC has gained 26.84%, versus a 28.87% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/oc-uslm-gff-3-infrastructure-stocks-to-buy-for-a-strong-2025-foundation/>3 Infrastructure Stocks to Buy for a Strong 2025 Foundation</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Infrastructure Stocks to Buy for a Strong 2025 Foundation

Tecnoglass: Time To Bank Some Profits

Strong government infrastructure investments, rising construction starts, and increased demand for sustainable, resilient projects across the U.S. benefit the building materials market. Therefore, considering top building material stocks like Owens Corning (OC), Apogee Enterprises (APOG), and Griffon (GFF) could be a wise choice, as they stand to gain. Read on... The building materials market remains resilient, bolstered by robust government spending on construction, declining interest rates, and a positive economic outlook. Amid this construction surge, investing in fundamentally strong stocks like Owens Corning (<a href="https://stocknews.com/stock/OC/">OC</a>), Apogee Enterprises, Inc. (<a href="https://stocknews.com/stock/APOG/">APOG</a>), and Griffon Corporation (<a href="https://stocknews.com/stock/GFF/">GFF</a>), could be a wise choice.
Given the substantial demand for materials in construction activities, the building material industry stands to gain from significant infrastructure investments. U.S. construction starts are forecasted to grow by <a href="https://www.constructconnect.com/construction-economic-news/us-construction-starts-2025-growth-forecast-by-sector#:~:text=Moving%20into%20the%20new%20year,Residential%20and%20Nonresidential%20Building%20sectors.">8.5% in 2025</a>, with non-residential starts rising by 6.9% and residential buildings surging by 12%. Notably, manufacturing construction is expected to rebound after declines in 2023 and 2024.
The market is poised to benefit from the U.S. government's 2025 construction plan, which includes <a href="https://thehill.com/homenews/administration/4739630-biden-administration-grants-infrastructure/">$1.8 billion in grants</a> for 148 infrastructure projects, and funding initiatives such as road repairs, electric buses, and bridge constructions across various states. Additionally, the global construction materials market is expected to surpass $2.01 trillion by 2034, growing at a healthy <a href="https://www.precedenceresearch.com/construction-materials-market#:~:text=Construction%20Materials%20Market%20Size%2C%20Share,3.90%25%20between%202024%20and%202034.">CAGR of 3.9%</a> from 2024 to 2034.
Furthermore, the building materials sector has a bright outlook in 2025, driven by growing demand for sustainable and resilient construction projects across the U.S. Let's take a closer look at the fundamentals of the three featured <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> stocks, starting with number three.
Stock #3: Owens Corning (<a href="https://stocknews.com/stock/OC/">OC</a>)
OC manufactures and sells insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, Asia Pacific, Latin America, and internationally. It operates in three segments: Composites, Insulation, and Roofing.
In terms of the trailing-12-month <a href="https://www.investopedia.com/terms/e/ebitda-margin.asp#:~:text=The%20EBITDA%20margin%20is%20a%20performance%20metric%20that%20measures%20a,by%20dividing%20EBITDA%20by%20revenue.">EBITDA margin</a>, OC's 23.12% is 65.8% higher than the 13.94% industry average. Likewise, its 9.92% trailing-12-month net income margin is 53.1% higher than the 6.48% industry average. Furthermore, its 7.81% trailing-12-month levered FCF margin is 14.3% higher than the 6.83% industry average.
OC's net sales for the third quarter, ended September 30, 2024, increased 22.9% year-over-year to $3.05 billion. The company's adjusted earnings and adjusted EPS attributable to OC common stockholders were $385 million and $4.38, representing increases of 1.3% and 4.8% from the year-ago values, respectively. Additionally, its adjusted EBITDA rose 18.9% year-over-year to $766 million.
For the quarter ended December 31, 2024, OC's revenue is expected to increase 20.4% year-over-year to $2.77 billion. Its revenue for the quarter ending June 30, 2025, is expected to rise marginally year-over-year to $4.67. It surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 15.7%.
OC's strong fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Growth, Momentum, and Sentiment. Within the <a href="https://stocknews.com/category/industrial-building-materials/">Industrial - Building Materials</a> industry, it is ranked #4 out of 42 stocks. To view all other grades for OC's Value, Stability, and Quality ratings, <a href="https://stocknews.com/stock/OC/">click here</a>.
Stock #2: Apogee Enterprises, Inc. (<a href="https://stocknews.com/stock/APOG/">APOG</a>)
APOG provides architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical (LSO).
On November 4, 2024, APOG announced the completion of its $242 million acquisition of UW Interco, LLC, enhancing its Large-Scale Optical segment and projecting significant revenue growth by fiscal 2026.
In terms of the trailing-12-month levered FCF margin, APOG's 9.50% is 39.1% higher than the 6.83% industry average. Likewise, its 15.93% trailing-12-month Return on Total Capital is 124.6% higher than the 7.09% industry average. Furthermore, the stock's 1.51x trailing-12-month asset turnover ratio is 92.9% higher than the 0.78x industry average.
For the second quarter ended August 31, 2024, APOG reported net sales of $342.44 million. Likewise, the company's adjusted operating income grew 6.4% from the prior year's quarter to $43.14 million. Its adjusted net earnings were $31.46 million, or $1.44 per share, up 6% and 5.9% from the year-ago values, respectively.
Street expects APOG's revenues for the quarter ending May 31, 2025, to increase 9.7% year-over-year to $363.80 million. Its EPS for fiscal 2025 is expected to grow 6.5% year-over-year to $5.08. APOG surpassed the consensus estimates in each of the four trailing quarters. Over the past year, the stock has gained 35.5%.
APOG's promising outlook is reflected in its POWR Ratings. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has a B grade for Value, Momentum, and Quality. It is ranked #3 in the same industry. To see APOG's ratings for Growth, Stability, and Sentiment, <a href="https://stocknews.com/stock/APOG/">click here</a>.
Stock #1: Griffon Corporation (<a href="https://stocknews.com/stock/GFF/">GFF</a>)
GFF, through its subsidiaries, provides consumer and professional, home and building products internationally. It operates under the Consumer and Professional Products and Home &amp; Building Products segments.
In terms of the trailing-12-month EBITDA margin, GFF's 19.10% is 37% higher than the 13.94% industry average. Likewise, its 10.87% trailing-12-month levered FCF margin is 59.1% higher than the 6.83% industry average. Furthermore, the stock's 40.26% trailing-12-month gross profit margin is 27.5% higher than the 31.57% industry average.
During the fiscal fourth quarter ended September 30, 2024, GFF's revenue increased by 2.9% year-over-year to $659.67 million. Its income from operations came in at $111.67 million, up 40.6% year-over-year. For the same period, GFF's adjusted net income was $70.94 million, a 12.5% increase from the same quarter last year, and its adjusted EPS was $1.47, reflecting a 23.5% rise from the prior-year quarter.
Analysts expect GFF's EPS for the quarter ended December 31, 2024, to increase 11.6% year-over-year to $1.19. Its revenue for the quarter ending June 30, 2025, is expected to increase 3.1% year-over-year to $667.64 million. It surpassed the consensus estimates in three of the four trailing quarters. Over the past year, the stock has gained 22.7% to close the last trading session at $72.87.
GFF's promising prospects are reflected in its POWR Ratings. It has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Value, Momentum, and Quality. Within the Industrial - Building Materials industry, it is ranked first. <a href="https://stocknews.com/stock/GFF/">Click here</a>, to access the additional ratings of GFF (Stability and Sentiment).
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
OC shares closed at $172.14 on Friday, up $2.85 (+1.68%). Year-to-date, OC has gained 1.07%, versus a 1.00% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/oc-gff-apog-3-building-materials-stocks-benefiting-from-the-construction-surge/>3 Building Materials Stocks Benefiting from the Construction Surge</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Building Materials Stocks Benefiting from the Construction Surge

Griffon's Margins Showing Strength, Should Accelerate Further In 2025

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