Owens Corning (OC) Laps the Stock Market: Here's Why
In the latest trading session, Owens Corning (OC) closed at $150.90, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.58%.
Shares of the construction materials company witnessed a loss of 2.62% over the previous month, trailing the performance of the Construction sector with its gain of 9.47% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of Owens Corning in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.03, reflecting a 9.39% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.27 billion, indicating a 2.83% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.08 per share and revenue of $9.62 billion, which would represent changes of -2.36% and -0.61%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.93% higher. Currently, Owens Corning is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Owens Corning is presently being traded at a Forward P/E ratio of 10.6. Its industry sports an average Forward P/E of 18.99, so one might conclude that Owens Corning is trading at a discount comparatively.
Investors should also note that OC has a PEG ratio of 0.41 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 16, placing it within the top 7% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Owens Corning Inc (OC) : Free Stock Analysis Report
