Here's Why You Should Retain GFF Stock in Your Portfolio Now

Griffon Corporation GFF is well-poised for growth in the coming quarters, courtesy of strength across the Home and Building Products (HBP) segment. The company's efforts to reward its shareholders handsomely add to its appeal.Based in New York, Griffon Corporation is a diversified holding company with exposure in several industries. The company engages in the manufacture and sale of a wide range of consumer and professional, and home and building products, including garage doors, shutters, materials for disposable diapers and disposable health care products.GFF currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 22.7% against the industry’s 9.2% decline.Image Source: Zacks Investment ResearchLet’s discuss the factors that should influence investors to retain this company for the time being.Business Strength: Griffon is witnessing strong momentum in the HBP segment. Increased demand for residential products, supported by the resiliency of repair and remodeling activity in the residential construction market, is driving the segment’s results. The U.S. residential construction market is recovering in single-family housing, supported by lower interest rates and builder incentives, which is likely to be beneficial for the segment in the quarters ahead. The recovery in the commercial construction market, driven by several projects undertaken by customers, is expected to benefit the segment.Expansion Initiatives: GFF solidifies its product portfolio and leverages business opportunities through asset additions. In July 2024, it acquired an Australia-based company, Pope (a provider of residential watering products), through its subsidiary, The AMES Companies, Inc. (AMES). Pope, which has been added to Griffon’s CPP segment, has expanded its product portfolio in the Australian market. The acquisition of Pope is anticipated to generate annual revenues of around $25 million and positively impact the company's earnings in the first full year of ownership.Investment in Innovation and Capacity Expansion: Griffon continues to invest in productivity, innovation and capacity expansion to further drive growth. For instance, in 2023, the company expanded Clopay's Troy manufacturing facility, which will improve Griffon’s manufacturing efficiencies and introduce new product lines. This apart, the company also expanded the sectional door manufacturing capacity in Ohio to cater to increasing demand for its premium products. These projects signify a significant investment in the expansion and modernization of the company’s key manufacturing and distribution facilities. Griffon plans to make additional investments in capacity expansion and technology in 2025.Rewards to Shareholders: GFF has a strong balance sheet that has enabled it to reward its shareholders handsomely through dividend payments and share buybacks. In fiscal 2024 (ended September 2024), it paid dividends worth $35.8 million and repurchased shares for $309.9 million. In November 2024, Griffon announced that the board of directors approved a new $400,000 share repurchase authorization. Also, in November 2024, the company hiked its quarterly dividend by 20%.Downsides of GFF StockSegmental Weakness: Weakness in the CPP segment raises concerns for Griffon. Reduced consumer demand in North America has been weighing on the segment's performance. Demand for products like outdoor tools, project tools and outdoor decor and watering products has been particularly weak.Forex Woes: GFF's international presence keeps it exposed to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar is likely to require the company to either raise prices or contract profit margins in locations outside the United States. Thus, adverse currency movements are a worry.Stocks to ConsiderBetter-ranked companies are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.Federal Signal Corporation FSS presently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 11.8%.In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2024 earnings has increased 1.8%.Gates Industrial Corporation plc GTES currently carries a Zacks Rank of 2. GTES delivered a trailing four-quarter average earnings surprise of 11.8%.In the past 60 days, the Zacks Consensus Estimate for Gates Industrial’s 2024 earnings has remained unchanged.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Federal Signal Corporation (FSS): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Griffon Corporation (GFF): Free Stock Analysis Report Gates Industrial Corporation PLC (GTES): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks