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

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In the latest trading session, Olin (OLN - Free Report) closed at $43.71, marking a -1.38% move from the previous day. This change lagged the S&P 500's 0.2% gain on the day.

Prior to today's trading, shares of the chlor-alkali and ammunition producer'had lost 4.97% over the past month. This has lagged the Basic Materials sector's gain of 2.47% and the S&P 500's gain of 3.28% in that time.

Wall Street will be looking for positivity from OLN as it approaches its next earnings report date. This is expected to be July 27, 2021. The company is expected to report EPS of $1.55, up 346.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.05 billion, up 65.34% from the year-ago period.

OLN's full-year Zacks Consensus Estimates are calling for earnings of $6.16 per share and revenue of $8.01 billion. These results would represent year-over-year changes of +556.3% and +39.07%, respectively.

It is also important to note the recent changes to analyst estimates for OLN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 12.35% higher within the past month. OLN currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that OLN has a Forward P/E ratio of 7.19 right now. This represents a discount compared to its industry's average Forward P/E of 12.45.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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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