In the latest close session, Owens Corning (OC) was down 3.03% at $129.79. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.08%.
The stock of construction materials company has fallen by 12.59% in the past month, lagging the Construction sector's loss of 2.52% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Owens Corning in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.78, signifying a 13.70% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.72 billion, indicating a 10.59% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.65 per share and a revenue of $10.48 billion, indicating changes of -14.2% and -4.54%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.43% lower. Right now, Owens Corning possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 9.81. For comparison, its industry has an average Forward P/E of 19.67, which means Owens Corning is trading at a discount to the group.
We can also see that OC currently has a PEG ratio of 9.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Miscellaneous industry stood at 1.89 at the close of the market yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Owens Corning Inc (OC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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