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Is Owens Corning (OC) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Owens Corning (OC - Free Report) . OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.34. This compares to its industry's average Forward P/E of 14.12. OC's Forward P/E has been as high as 14.56 and as low as 7.51, with a median of 10.32, all within the past year.
We also note that OC holds a PEG ratio of 0.59. 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. OC's industry has an average PEG of 1.04 right now. Within the past year, OC's PEG has been as high as 1.04 and as low as 0.30, with a median of 0.41.
Another notable valuation metric for OC is its P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OC's current P/B looks attractive when compared to its industry's average P/B of 2.93. Over the past year, OC's P/B has been as high as 2.85 and as low as 1.87, with a median of 2.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OC has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.41.
Finally, our model also underscores that OC has a P/CF ratio of 6.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OC's current P/CF looks attractive when compared to its industry's average P/CF of 17.71. Within the past 12 months, OC's P/CF has been as high as 9.25 and as low as 5.49, with a median of 6.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens Corning is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OC feels like a great value stock at the moment.
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Is Owens Corning (OC) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Owens Corning (OC - Free Report) . OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.34. This compares to its industry's average Forward P/E of 14.12. OC's Forward P/E has been as high as 14.56 and as low as 7.51, with a median of 10.32, all within the past year.
We also note that OC holds a PEG ratio of 0.59. 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. OC's industry has an average PEG of 1.04 right now. Within the past year, OC's PEG has been as high as 1.04 and as low as 0.30, with a median of 0.41.
Another notable valuation metric for OC is its P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. OC's current P/B looks attractive when compared to its industry's average P/B of 2.93. Over the past year, OC's P/B has been as high as 2.85 and as low as 1.87, with a median of 2.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OC has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.41.
Finally, our model also underscores that OC has a P/CF ratio of 6.10. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. OC's current P/CF looks attractive when compared to its industry's average P/CF of 17.71. Within the past 12 months, OC's P/CF has been as high as 9.25 and as low as 5.49, with a median of 6.74.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens Corning is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OC feels like a great value stock at the moment.