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Aggressive Growth

Owens Corning (OC - Snapshot Report) analysts have drastically increased their estimates, keeping shares fairly priced. With the market weighing on stocks, this could be a good buying opportunity.

Company Description

Owens Corning makes residential and commercial building materials. The company also makes glass-fiber reinforcement and engineered material for composite systems used in many industries.

Beat the Street

On Apr 28 Owens Corning reported an 18% increase in revenue for the first quarter. Net sales were $1.3 billion. Adjusted earnings for the quarter was up 10 fold, to $53 million.

Earnings broke down to 42 cents per share, 27 cents ahead of the Zacks Consensus Estimate. Owens Corning also went on to raise their full-year guidance.

Analysts Respond

Following the report analysts quickly raised their forecasts. The full-year consensus for 2010 is up 58 cents, to $2.08. Next year's estimates are averaging $2.64, up 54 cents.

If the Zacks #1 Rank (Strong Buy) can reach these targets, the year-over-year growth rates will be 82% and 27%, respectively.

Valuations

Those impressive growth rates are coming at a solid value. The forward P/E is about 16 times and the PEG ratio is just 0.7. Owens Corning's price-to-book is about 1.5 times.

The Chart

Shares of OC are in a nice trend right now, despite the market's best efforts to weigh them down. You can see that the stock continues to set higher highs and higher lows. Volatility has picked up since the earnings report, but this could be a good chance to buy on the dip.

A chart for Owens Corning

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