Owens Corning (OC) Stock Sinks As Market Gains: What You Should Know
Owens Corning (OC) closed the most recent trading day at $142.85, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the construction materials company had gained 1.19% over the past month. This has outpaced the Construction sector's loss of 3.85% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from Owens Corning as it approaches its next earnings release. The company is expected to report EPS of $3.78, up 5.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.52 billion, down 0.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.59 per share and revenue of $9.67 billion, which would represent changes of +5.51% and -0.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Owens Corning. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Owens Corning is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 10.53. Its industry sports an average Forward P/E of 17.95, so we one might conclude that Owens Corning is trading at a discount comparatively.
Also, we should mention that OC has a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Owens Corning Inc (OC) : Free Stock Analysis Report
