Owens Corning (OC) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Owens Corning (OC) closed at $158.96, marking a +1.86% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 1.52%.

Heading into today, shares of the construction materials company had gained 27.26% over the past month, outpacing the Construction sector's gain of 5.5% and the S&P 500's loss of 1.82%.

Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.02, showcasing a 28.27% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.66 billion, indicating a 3.26% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and a revenue of $9.83 billion, representing changes of -20.91% and -2.67%, respectively, from the prior year.

Any recent changes to analyst estimates for Owens Corning should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Owens Corning possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 16.38. This signifies a discount in comparison to the average Forward P/E of 18.95 for its industry.

Also, we should mention that OC has a PEG ratio of 2.83. 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 average PEG ratio for the Building Products - Miscellaneous industry stood at 1.59 at the close of the market yesterday.

Story Continues

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 26% of over 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.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments