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Should Value Investors Buy Owens Corning (OC) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Owens Corning (OC - Free Report) . OC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.11, while its industry has an average P/E of 14.90. OC's Forward P/E has been as high as 12.28 and as low as 6.49, with a median of 8.75, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.21. This compares to its industry's average P/S of 1.53.

Finally, investors will want to recognize that OC has a P/CF ratio of 6.19. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.77. OC's P/CF has been as high as 6.51 and as low as 4.07, with a median of 4.83, all within the past year.

Another great Building Products - Miscellaneous stock you could consider is PGT Innovations , which is a # 1 (Strong Buy) stock with a Value Score of A.

PGT Innovations sports a P/B ratio of 2.59 as well; this compares to its industry's price-to-book ratio of 101.48. In the past 52 weeks, PGTI's P/B has been as high as 2.76, as low as 1.70, with a median of 2.15.

These are only a few of the key metrics included in Owens Corning and PGT Innovations strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, OC and PGTI look like an impressive value stock at the moment.


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