Owens Corning (OC – Free Report) closed the most recent trading day at $154.04, moving +1.3% from the previous trading session. The stock’s performance was behind the S&P 500’s daily gain of 1.59%. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 1.63%.
The construction materials company’s stock has dropped by 20.31% in the past month, falling short of the Construction sector’s loss of 9.68% and the S&P 500’s loss of 2.42%.
The upcoming earnings release of Owens Corning will be of great interest to investors. The company is forecasted to report an EPS of $3, showcasing a 16.43% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.53 billion, indicating a 9.82% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.03 per share and revenue of $10.74 billion. These totals would mark changes of -5.53% and -2.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 5.16% lower. Owens Corning is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Owens Corning is currently exchanging hands at a Forward P/E ratio of 10.11. Its industry sports an average Forward P/E of 17.05, so one might conclude that Owens Corning is trading at a discount comparatively.
It is also worth noting that OC currently has a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As the market closed yesterday, the Building Products – Miscellaneous industry was having an average PEG ratio of 1.79.
The Building Products – Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 199, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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