Back to top

Analyst Blog

Building material producer Owens Corning (OC - Snapshot Report) has taken over the mineral wool commercial and industrial insulation products manufacturer Thermafiber Inc.

The acquisition includes a145,000-square-foot manufacturing location of Thermafiber located in Wabash, IN. The buyout provides Owens Corning with a broad insulation portfolio of fiberglass, foam and mineral wool insulation products.

The insulation produced by Thermafiber contains up to 90 percent recycled content and is non-combustible, inorganic and mold-resistant. It is used in fire blankets, fire block and curtain wall applications in commercial, residential, and industrial markets.

Recently, in March 2013, Toledo, OH-based Owens Corning entered into a strategic alliance with leading chemical company BASF and a multi-national thermoplastic producer, TenCate Advanced Composites. Under the alliance the two companies will work together to develop thermoplastic composites for mass production of automobiles in an attempt to make vehicles lighter, durable, environment friendly and more fuel efficient.

Owens Corning which produces residential and commercial building materials, glass-fiber reinforcements and engineered materials for composite systems is slowly gaining momentum from improving new home demand.

With the overall new home construction market improving steadily, building and other construction material companies like Vulcan Materials Company (VMC - Analyst Report) and Eagle Materials Inc. (EXP - Snapshot Report) as well as building product makers Masco Corporation (MAS - Analyst Report) and Louisiana-Pacific Corporation (LPX - Snapshot Report) are seeing a concomitant rise in demand and volume.

The housing market has steadily made a comeback from the lows witnessed in mid-2006 from the severe and widespread downturn. The stability in the home buying market, combined with low interest rates and increased rentals, has increased the affordability of homes.

The U.S. housing market has seen significant upside in new home sales volume for 2012 with industry-wide sales increasing roughly 25% from prior-year levels. New home construction activity improved 25% in 2012. Faced with the fiscal cliff at 2012 end, and the threat of sequestration and a mounting national debt, the recovery of the housing market was one bright spot on the U.S. economic horizon.

Owens Corning currently retains a short-term Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%