In the latest trading session, Owens Corning (OC) closed at $123.35, marking a +1.1% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1%.
The stock of construction materials company has risen by 7.31% in the past month, leading the Construction sector's gain of 4.47% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance 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. Simultaneously, our latest consensus estimate expects the revenue to be $2.16 billion, showing a 23.78% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.18 per share and revenue of $10.13 billion, which would represent changes of -23.44% and 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Owens Corning should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Owens Corning presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 11.87. This signifies a discount in comparison to the average Forward P/E of 19.91 for its industry.
It is also worth noting that OC currently has a PEG ratio of 11.64. 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 1.91 at the close of the market yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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