Is Griffon (GFF) Stock Outpacing Its Conglomerates Peers This Year?

Investors interested in Conglomerates stocks should always be looking to find the best-performing companies in the group. Griffon (GFF) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Griffon is one of 26 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Griffon is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for GFF's full-year earnings has moved 14.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that GFF has returned about 15% since the start of the calendar year. Meanwhile, the Conglomerates sector has returned an average of 6.2% on a year-to-date basis. This means that Griffon is performing better than its sector in terms of year-to-date returns.

One other Conglomerates stock that has outperformed the sector so far this year is Sumitomo Corp. (SSUMY). The stock is up 7.7% year-to-date.

For Sumitomo Corp. the consensus EPS estimate for the current year has increased 1.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Griffon is a member of the Diversified Operations industry, which includes 26 individual companies and currently sits at #28 in the Zacks Industry Rank. On average, this group has gained an average of 6.2% so far this year, meaning that GFF is performing better in terms of year-to-date returns. Sumitomo Corp. is also part of the same industry.

Story continues

Investors interested in the Conglomerates sector may want to keep a close eye on Griffon and Sumitomo Corp. as they attempt to continue their solid performance.

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