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Owens Corning (OC) Rises But Trails Market: What Investors Should Know

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Owens Corning (OC - Free Report) closed the most recent trading day at $137.10, moving +1.99% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%.

The the stock of construction materials company has fallen by 11.09% in the past month, lagging the Construction sector's loss of 9.21% and the S&P 500's loss of 8.86%.

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 May 7, 2025. The company's upcoming EPS is projected at $2.82, signifying a 21.45% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.52 billion, up 9.41% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $14.33 per share and a revenue of $10.58 billion, demonstrating changes of -9.93% and -3.62%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.78% decrease. Owens Corning is currently a Zacks Rank #4 (Sell).

Looking at valuation, Owens Corning is presently trading at a Forward P/E ratio of 9.38. This represents a discount compared to its industry's average Forward P/E of 14.35.

Also, we should mention that OC has a PEG ratio of 2.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Building Products - Miscellaneous industry stood at 1.66 at the close of the market yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 38% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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