In the latest trading session, Olin (OLN) closed at $46.98, marking a +0.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%.
Heading into today, shares of the chlor-alkali and ammunition producer'had lost 2.37% over the past month, outpacing the Basic Materials sector's loss of 4.41% and lagging the S&P 500's gain of 2.17% in that time.
OLN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.36, up 315.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.02 billion, up 62.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.49 per share and revenue of $7.88 billion. These totals would mark changes of +506.67% and +36.84%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for OLN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. OLN is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, OLN currently has a Forward P/E ratio of 8.5. Its industry sports an average Forward P/E of 14.49, so we one might conclude that OLN is trading at a discount comparatively.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 63, putting 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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