|Bid||0.00 x 800|
|Ask||56.25 x 900|
|Day's Range||53.69 - 54.40|
|52 Week Range||40.64 - 78.68|
|Beta (3Y Monthly)||1.61|
|PE Ratio (TTM)||11.10|
|Earnings Date||Apr 24, 2019|
|Forward Dividend & Yield||0.88 (1.87%)|
|1y Target Est||60.06|
Owens Corning (OC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Owens Corning (NYSE:OC) may not be a household name for investors, but you've probably used their products in your everyday life. The company is a global leader in roofing shingles, building insulation materials and fiberglass composites. The firm generates more than $7 billion in annual sales, has 20,000 employees, sells to 33 different countries and has been on the Fortune 500 list for more than 60 consecutive years. * 7 Energy Stocks to Buy as Oil Booms Source: Shutterstock Unfortunately, Owens Corning stock hasn't been a safe shelter for shareholders over the past year. If anything, the stock has developed a serious water leak, with shares tumbling from as high as $95 to just $52 now. But the downside seems seriously overdone. Here's why OC stock can make a full recovery in coming quarters. Owens Corning Isn't Primarily a New Homes PlayPart of the reason that OC stock has struggled over the past year is that investors are worried about new home demand. After several robust years, the new housing market has slowed dramatically across much of the United States. It's not hard to understand why. The Fed's rather aggressive rate-hiking campaign caused mortgage rates to surge. This, in turn, caused prospective homeowners to delay or forgo new home buying decisions altogether.OC stock, like many other building-materials plays, slumped. This isn't fair or correct on the market's part, however. Owens Corning does not primarily rely on new home sales for its revenues.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAccording to the latest corporate presentation, the company gets just 13% of its revenues from U.S. new residential construction. U.S. residential and remodeling is one-third of the overall business, with international sales being another third. The remaining 19% of revenues come from U.S. commercial and industrial uses. Thus, tying OC stock's fate to that of the home-building market makes little sense. A Relatively Diversified BusinessThe good news doesn't stop there. The company's bread-and-butter business is roofing. Within roofing, more than 80% of revenues come from home repair and maintenance. This is recurring revenue, rain or shine. Roofs get old, they get hit with hail, excessive snowfall and the like. Regardless of the economy, people need to keep their roofs weatherproof. Roof sales for new homes make up less than 10% of revenues.The company has another business, composites, that has very little exposure to the housing market at all. Within composites, 58% of sales go to international markets, while 29% of revenues come from U.S. industrial and commercial buyers. Again, that's solid diversification away from housing. Only insulation draws a major chunk of revenues from new homes, but, even there, international is a bigger buyer as well.Make no mistake, OC stock is powered by a diverse and robust line of businesses. Interestingly enough, all three primary business lines had between $2 billion and $3 billion in sales in 2018, showing how the company isn't overly reliant on any one business segment or end customer. Bargain Basement PricingAs a result of the shellacking over the last year, OC stock is now trading at a compelling valuation. In fact, it is selling for just 10 times trailing earnings and 9x forward earnings. That's right, despite the huge drop in the stock price, Owens Corning's earnings are still set to increase nicely in 2019.If you're wondering how Owens Corning has traded historically, it looks very cheap on that metric as well. OC stock hasn't sold at this low of a P/E ratio since 2011. Between 2014 and last year, it tended to trade in the 17-20x earnings range, while periodically moving above that level. Merely returning to 18x earnings would imply that that stock doubles in fairly short order.Other metrics support the notion that Owens Corning is cheap as well. For example, it is selling at less than 1x sales, which is generally cheap for a building materials company, particularly one that is not so levered to the more volatile new housing cycle. It is also selling at a PEG ratio of less than 1, suggesting that analysts are relatively confident of future earnings growth, rather than the current valuation being a so-called value trap.Finally, the company, while never known as a dividend stock, hit its highest level of dividend yield to date during the 2018 correction and is still paying a close to 2% annual yield. Owens Corning Stock VerdictDespite the battered stock price, OC stock still offers a great deal of value for shareholders. For one thing, the company is getting serious about shareholders returns. The company has cut costs and used the savings to pay the dividend and simultaneously pay down debt. Additionally, the company has suggested that it may have wiggle room for a stock buyback in 2019 as well.Its cost savings have almost doubled profit margins from a decade ago, setting up a rather attractive growth trajectory when combined with a starting P/E ratio of 10. There's no guarantee that OC stock will soar in 2019. The new housing market may remain subdued for quite awhile, leaving Owens Corning's stock sector out to dry for the time being. Eventually though, the market should wake up to the strong earnings and improving prospects for the dividend and potential share buyback going forward. * 10 Stocks That Are Screaming Buys Right Now At 9x forward earnings, it doesn't take much for shareholders to win here.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Owens Corning: What to Do When the Roof Caves In appeared first on InvestorPlace.
Owens Corning NYSE:OCView full report here! Summary * Perception of the company's creditworthiness is negative and weakening * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for OC with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $1.38 billion over the last one-month into ETFs that hold OC are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator with a weakening bias over the past 1-month. OC credit default swap spreads are at their highest levels for the past 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! After Owens Corning's (NYSE:OC) recent earnings announcement in December 2018...
Owens Corning is scheduled to announce first-quarter 2019 financial results on Wednesday, April 24, before the New York Stock Exchange opens. The company will host a call to discuss its financial results at 9 a.m.
Despite housing starts dropping in February, lower mortgage rates are giving the housing market a rosier outlook. Reuters reported that the Commerce Department recorded an 8.7% decrease in housing starts to a seasonally adjusted annual rate of 1.162 million units, the largest percent decline in eight months as a result, in part, of bad weather. Warning! GuruFocus has detected 2 Warning Sign with BLDR.
Homebuilding stocks, which fell deep into a bear market in 2018, have rebounded an impressive 17% the year, as measured by the SPDR S&P Homebuilders ETF (XHB). The once beaten-down sector has charged well ahead of the market, beating the S&P 500’s 12.5% gain year-to-date, on track for its best quarter in seven years. Investors and analysts say the rebound can be attributed to Fed-induced low mortgage rates and interest rates, per several articles including a CNBC column.
Owens Corning (OC) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Owens Corning (NYSE:OC), which is in the building business, and is based in United States, saw a double-digit share price rise of over 10% in the past couple of monthsRead More...
NEW YORK, March 05, 2019 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
For the second consecutive year, Owens Corning (OC) has been recognized by the Ethisphere Institute as one of the 2019 World’s Most Ethical Companies. The Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, recognized Owens Corning again this year as one of four honorees in the Construction & Building Materials industry, underscoring its commitment to leading with integrity and prioritizing ethical business practices. In 2019, the Ethisphere Institute honored 128 companies from 21 countries and 50 industries.
Solid Insulation business and improved pricing help Owens Corning (OC) to post higher fourth-quarter 2018 earnings. Significant volume decline in Composites and Roofing business offsets the positives.
posted stronger-than-expected fourth quarter profits Wednesday and said it sees returning to a "strong conversion of adjusted earnings into free cash flow" over the coming year. Owens Corning said adjusted earnings for the three months ending in December came in at $1.38 per share, up 24.3% from the same period last year and well ahead of the Street consensus forecast of $1.21. Group sales, the company said, were 6.2%% higher from last year at $1.7 billion and narrowly topped the consensus estimate of $1.6 billion.
Owens Corning (OC) delivered earnings and revenue surprises of 6.98% and 2.44%, respectively, for the quarter ended December 2018. Do the numbers hold clues to what lies ahead for the stock?
On a per-share basis, the Toledo, Ohio-based company said it had net income of $1.55. Earnings, adjusted for non-recurring gains, came to $1.38 per share. The results topped Wall Street expectations. The ...
On Wednesday, Feb. 20, Owens-Corning (NYSE: OC ) will release its latest earnings report. Check out Benzinga's report to understand the earnings report's implications. Earnings and Revenue Owens-Corning ...
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize! If you are currently a shareholder in Owens Corning (NYSE:OC),Read More...
Strong contributions from its segments, solid backlog level and acquisitions are likely to aid Quanta Services (PWR) to post higher Q4 earnings.