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

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Olin (OLN - Free Report) closed the most recent trading day at $54.82, moving +0.24% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.42%. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Prior to today's trading, shares of the chlor-alkali and ammunition producer'had lost 1.34% over the past month. This has lagged the Basic Materials sector's gain of 7.56% and the S&P 500's gain of 0.39% in that time.

Olin will be looking to display strength as it nears its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $2.53, up 2208.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 41.33% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Olin. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.64% higher. Olin is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Olin is currently trading at a Forward P/E ratio of 6.01. This represents a discount compared to its industry's average Forward P/E of 12.8.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

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