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Is Owens Corning (OC) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Owens Corning (OC - Free Report) is a stock many investors are watching right now. OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.18, while its industry has an average P/E of 10.61. Over the last 12 months, OC's Forward P/E has been as high as 10.70 and as low as 6.44, with a median of 8.28.
We also note that OC holds a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OC's PEG compares to its industry's average PEG of 1.03. OC's PEG has been as high as 1.23 and as low as 0.30, with a median of 0.62, all within the past year.
Investors should also recognize that OC has a P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. OC's current P/B looks attractive when compared to its industry's average P/B of 2.91. Within the past 52 weeks, OC's P/B has been as high as 2.34 and as low as 1.57, with a median of 2.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OC has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.04.
Finally, our model also underscores that OC has a P/CF ratio of 4.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.43. Over the past year, OC's P/CF has been as high as 6.85 and as low as 4.39, with a median of 5.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens Corning is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OC feels like a great value stock at the moment.
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Is Owens Corning (OC) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Owens Corning (OC - Free Report) is a stock many investors are watching right now. OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.18, while its industry has an average P/E of 10.61. Over the last 12 months, OC's Forward P/E has been as high as 10.70 and as low as 6.44, with a median of 8.28.
We also note that OC holds a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OC's PEG compares to its industry's average PEG of 1.03. OC's PEG has been as high as 1.23 and as low as 0.30, with a median of 0.62, all within the past year.
Investors should also recognize that OC has a P/B ratio of 1.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. OC's current P/B looks attractive when compared to its industry's average P/B of 2.91. Within the past 52 weeks, OC's P/B has been as high as 2.34 and as low as 1.57, with a median of 2.06.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. OC has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.04.
Finally, our model also underscores that OC has a P/CF ratio of 4.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.43. Over the past year, OC's P/CF has been as high as 6.85 and as low as 4.39, with a median of 5.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Owens Corning is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, OC feels like a great value stock at the moment.