In the latest trading session, Owens Corning (OC) closed at $122.66, marking a -1.39% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.43%.
Coming into today, shares of the construction materials company had gained 9.36% in the past month. In that same time, the Construction sector gained 5.42%, while the S&P 500 gained 0.18%.
The investment community will be closely monitoring the performance of Owens Corning in its forthcoming earnings report. On that day, Owens Corning is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 58.7%. At the same time, our most recent consensus estimate is projecting a revenue of $2.2 billion, reflecting a 22.59% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.31 per share and a revenue of $10.14 billion, demonstrating changes of -22.63% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.23% upward. Owens Corning presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 11.61. This represents a discount compared to its industry average Forward P/E of 19.68.
Investors should also note that OC has a PEG ratio of 2.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Miscellaneous industry had an average PEG ratio of 1.86.
The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Owens Corning Inc (OC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
