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Olin (OLN) Outpaces Stock Market Gains: What You Should Know

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Olin (OLN - Free Report) closed at $46.26 in the latest trading session, marking a +0.17% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%.

Heading into today, shares of the chlor-alkali and ammunition producer'had lost 9.34% over the past month, lagging the Basic Materials sector's loss of 4.91% and the S&P 500's gain of 2.16% in that time.

OLN will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. On that day, OLN is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 315.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.02 billion, up 62.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $7.88 billion, which would represent changes of +506.67% and +36.84%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for OLN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. OLN is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, OLN is currently trading at a Forward P/E ratio of 8.42. This valuation marks a discount compared to its industry's average Forward P/E of 14.44.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.


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