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Owens Corning (OC) Advances While Market Declines: Some Information for Investors

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Owens Corning (OC - Free Report) closed the most recent trading day at $159.79, moving +1.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.65%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.

The the stock of construction materials company has risen by 10.76% in the past month, leading the Construction sector's gain of 6.05% and the S&P 500's gain of 3.27%.

Market participants will be closely following the financial results of Owens Corning in its upcoming release. The company's earnings per share (EPS) are projected to be $3.03, reflecting a 9.39% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.27 billion, indicating a 2.83% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.08 per share and a revenue of $9.62 billion, signifying shifts of -2.36% and -0.61%, respectively, from the last year.

Any recent changes to analyst estimates for Owens Corning should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.93% higher within the past month. As of now, Owens Corning holds a Zacks Rank of #3 (Hold).

Looking at valuation, Owens Corning is presently trading at a Forward P/E ratio of 11.19. This valuation marks a discount compared to its industry's average Forward P/E of 18.78.

Meanwhile, OC's PEG ratio is currently 0.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.82.

The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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