In the latest close session, Owens Corning (OC) was up +1.94% at $122.17. The stock outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.56%.
The stock of construction materials company has risen by 4.98% in the past month, leading the Construction sector's gain of 4.9% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.33, marking a 58.7% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.2 billion, indicating a 22.59% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.31 per share and revenue of $10.14 billion, which would represent changes of -22.63% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 4.23% higher within the past month. Right now, Owens Corning possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Owens Corning is presently being traded at a Forward P/E ratio of 11.19. Its industry sports an average Forward P/E of 19.15, so one might conclude that Owens Corning is trading at a discount comparatively.
We can additionally observe that OC currently boasts a PEG ratio of 2.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.71 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 31% of all 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.
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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