Owens Corning (OC) closed at $116.21 in the latest trading session, marking a +2.24% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.65%.
Shares of the construction materials company have appreciated by 1.87% over the course of the past month, outperforming the Construction sector's gain of 0.6%, and the S&P 500's gain of 0.59%.
Market participants will be closely following the financial results of Owens Corning in its upcoming release. The company's upcoming EPS is projected at $1.29, signifying a 59.94% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.16 billion, reflecting a 23.78% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.18 per share and a revenue of $10.13 billion, signifying shifts of -23.44% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Owens Corning possesses a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Owens Corning has a Forward P/E ratio of 11.06 right now. This valuation marks a discount compared to its industry average Forward P/E of 19.04.
It's also important to note that OC currently trades at a PEG ratio of 10.84. 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 Building Products - Miscellaneous industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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