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Owens Corning (OC) Exceeds Market Returns: Some Facts to Consider

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The most recent trading session ended with Owens Corning (OC - Free Report) standing at $182.30, reflecting a +1.23% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.07%.

The construction materials company's shares have seen an increase of 3.67% over the last month, not keeping up with the Construction sector's gain of 10.96% and outstripping the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of Owens Corning in its upcoming release. The company plans to announce its earnings on August 6, 2024. The company's earnings per share (EPS) are projected to be $4.37, reflecting a 3.55% 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.63 per share and a revenue of $11.21 billion, indicating changes of +8.39% and +15.84%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.97% higher. As of now, Owens Corning holds a Zacks Rank of #4 (Sell).

Digging into valuation, Owens Corning currently has a Forward P/E ratio of 11.52. This signifies a discount in comparison to the average Forward P/E of 21.57 for its industry.

Also, we should mention that OC has a PEG ratio of 1.59. 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 had an average PEG ratio of 1.8 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 53, putting 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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