Owens Corning (OC) Laps the Stock Market: Here's Why
In the latest trading session, Owens Corning (OC) closed at $149.99, marking a +1.74% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.
Shares of the construction materials company have appreciated by 2.83% over the course of the past month, underperforming the Construction sector's gain of 7.47% and the S&P 500's gain of 2.9%.
The investment community will be closely monitoring the performance of Owens Corning in its forthcoming earnings report. On that day, Owens Corning is projected to report earnings of $2.80 per share, which would represent year-over-year growth of 12.45%. At the same time, our most recent consensus estimate is projecting a revenue of $2.22 billion, reflecting a 2.64% fall from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.55% increase. Owens Corning presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Owens Corning is currently being traded at a Forward P/E ratio of 10.64. Its industry sports an average Forward P/E of 16.96, so one might conclude that Owens Corning is trading at a discount comparatively.
Also, we should mention that OC has a PEG ratio of 1.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want 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
Owens Corning Inc (OC) : Free Stock Analysis Report
