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Owens Corning (OC) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Owens Corning (OC - Free Report) closed at $132.37, marking a +1.58% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 1.35%.

Shares of the construction materials company have depreciated by 8.11% over the course of the past month, outperforming the Construction sector's loss of 11.17% and lagging the S&P 500's loss of 6.19%.

Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $2.52 billion, reflecting a 0.23% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.60 per share and revenue of $9.68 billion, indicating changes of +5.59% and -0.86%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Owens Corning currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 9.58. This indicates a discount in contrast to its industry's Forward P/E of 14.36.

We can also see that OC currently has a PEG ratio of 1.22. 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. By the end of yesterday's trading, the Building Products - Miscellaneous industry had an average PEG ratio of 1.43.

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 10% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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