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

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In the latest market close, Owens Corning (OC - Free Report) reached $159.90, with a +1.36% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 1.07%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.17%.

Shares of the construction materials company have depreciated by 1.08% over the course of the past month, underperforming the Construction sector's gain of 2.28% and the S&P 500's gain of 2.92%.

The investment community will be paying close attention to the earnings performance of Owens Corning in its upcoming release. The company's earnings per share (EPS) are projected to be $4.01, reflecting a 3.37% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.04 billion, up 22.67% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.39 per share and a revenue of $10.97 billion, signifying shifts of +6.73% and +13.35%, respectively, from the last year.

Investors might also notice recent changes to 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Owens Corning is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, Owens Corning is presently trading at a Forward P/E ratio of 10.25. This denotes a discount relative to the industry's average Forward P/E of 17.7.

It is also worth noting that OC currently has a PEG ratio of 3.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous was holding an average PEG ratio of 1.81 at yesterday's closing price.

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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