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Owens Corning (OC) Outpaces Stock Market Gains: What You Should Know

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Owens Corning (OC - Free Report) closed at $137.42 in the latest trading session, marking a +0.46% move from the prior day. This move outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.

Heading into today, shares of the construction materials company had gained 0.31% over the past month, outpacing the Construction sector's loss of 5.03% and lagging the S&P 500's gain of 0.38% in that time.

Owens Corning will be looking to display strength as it nears its next earnings release. In that report, analysts expect Owens Corning to post earnings of $3.78 per share. This would mark year-over-year growth of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $2.52 billion, down 0.23% from the prior-year quarter.

OC's full-year Zacks Consensus Estimates are calling for earnings of $13.60 per share and revenue of $9.68 billion. These results would represent year-over-year changes of +5.59% and -0.86%, respectively.

Any recent changes to analyst estimates for Owens Corning should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 0.04% higher. Owens Corning is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 10.06. This represents a discount compared to its industry's average Forward P/E of 15.21.

It is also worth noting that OC currently has a PEG ratio of 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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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