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Owens Corning (OC) Ascends While Market Falls: Some Facts to Note

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The most recent trading session ended with Owens Corning (OC - Free Report) standing at $174.39, reflecting a +0.77% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.7%.

The construction materials company's stock has dropped by 3.49% in the past month, falling short of the Construction sector's gain of 4.32% and the S&P 500's gain of 2.14%.

Investors will be eagerly watching for the performance of Owens Corning in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2024. The company's earnings per share (EPS) are projected to be $4.31, reflecting a 2.13% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.87 billion, indicating a 12.13% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.44 per share and a revenue of $11.23 billion, representing changes of +7.07% and +16.03%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.26% decrease. Owens Corning is currently a Zacks Rank #3 (Hold).

Investors should also note Owens Corning's current valuation metrics, including its Forward P/E ratio of 11.21. This expresses a discount compared to the average Forward P/E of 20.47 of its industry.

We can also see that OC currently has a PEG ratio of 5.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Miscellaneous industry stood at 1.82 at the close of the market yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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