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

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In the latest trading session, Olin (OLN - Free Report) closed at $44.39, marking a +1.39% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%.

Coming into today, shares of the chlor-alkali and ammunition producer'had lost 11.77% in the past month. In that same time, the Basic Materials sector lost 4.99%, while the S&P 500 gained 2.71%.

OLN will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. In that report, analysts expect OLN to post earnings of $1.36 per share. This would mark year-over-year growth of 315.87%. Meanwhile, our latest consensus estimate is calling for revenue of $2.02 billion, up 62.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.49 per share and revenue of $7.88 billion. These totals would mark changes of +506.67% and +36.84%, respectively, from last year.

Any recent changes to analyst estimates for OLN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.92% higher within the past month. OLN currently has a Zacks Rank of #2 (Buy).

In terms of valuation, OLN is currently trading at a Forward P/E ratio of 7.98. This valuation marks a discount compared to its industry's average Forward P/E of 13.02.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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