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Olin (OLN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Olin (OLN) closed at $65.70, marking a -1.82% move from the previous day. This change lagged the S&P 500's daily loss of 1.64%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the chlor-alkali and ammunition producer'had gained 4.25% in the past month. In that same time, the Basic Materials sector gained 3.76%, while the S&P 500 gained 0.73%.

Wall Street will be looking for positivity from Olin as it approaches its next earnings report date. On that day, Olin is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 49.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.53 billion, up 13.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.10 per share and revenue of $9.82 billion, which would represent changes of +25.15% and +10.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Olin. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.44% higher. Olin is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Olin is holding a Forward P/E ratio of 6.63. For comparison, its industry has an average Forward P/E of 10.68, which means Olin is trading at a discount to the group.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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