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Owens Corning (OC) Falls More Steeply Than Broader Market: What Investors Need to Know

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Owens Corning (OC - Free Report) ended the recent trading session at $176.56, demonstrating a -1.65% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the construction materials company had gained 2.8% over the past month. This has outpaced the Construction sector's loss of 0.27% and lagged the S&P 500's gain of 4.59% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.31, reflecting a 2.13% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.87 billion, up 12.13% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.48 per share and revenue of $11.23 billion. These totals would mark changes of +7.35% and +16.03%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Owens Corning. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, there's been a 0.72% rise in the Zacks Consensus EPS estimate. Owens Corning is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Owens Corning currently has a Forward P/E ratio of 11.6. This denotes a discount relative to the industry's average Forward P/E of 19.13.

Investors should also note that OC has a PEG ratio of 5.34 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Miscellaneous industry had an average PEG ratio of 1.74.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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