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Here's How Much You'd Have If You Invested $1000 in Owens Corning a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Owens Corning (OC - Free Report) ten years ago? It may not have been easy to hold on to OC for all that time, but if you did, how much would your investment be worth today?
Owens Corning's Business In-Depth
With that in mind, let's take a look at Owens Corning's main business drivers.
Owens Corning is a world leader in building materials systems and composite solutions. Since its inception in 1938, the company has evolved as a market-leading innovator of glass fiber technology. Its products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
The company has three reportable segments — Composites, Insulation and Roofing.
Composites segment (accounting for 27.3% of total 2022 sales) includes vertically integrated downstream activities and specializes in the production of glass fiber reinforcement materials. Demand for composites is driven by general global economic activity and by the increasing replacement of traditional materials such as aluminum, wood and steel with composites that offer lighter weight, improved strength, lack of conductivity and corrosion resistance.
Insulation segment (38%) products include thermal and acoustical batts, loose-fill insulation, foam sheathing and accessories, glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation as well as foam insulation. Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency.
Roofing segment (37.5%) products include laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials and oxidized asphalt. Demand for products in the Roofing segment is generally driven by residential repair and remodeling activity and by new residential construction. Roofing damage from major storms can significantly increase demand in the segment.
[Note: For 2022, corporate eliminations constituted 2.8% of net sales]
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Owens Corning ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,944.88, or a 294.49% gain, as of December 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 165.82% and gold's return of 56.24% over the same time frame.
Looking ahead, analysts are expecting more upside for OC.
Shares of Owens Corning have outperformed its industry in the past year. The company is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization. Customer mix and strategic buyouts are added benefits. The company’s focus on new product and process innovation bodes well. In the first three quarters, the company has unveiled 25 new or refreshed products across the three businesses. Notably, earnings estimates for the fourth quarter have moved up in the past 30 days. However, increasing pressure in some of the industrial and international markets, higher interest rates and ongoing geopolitical tensions remain concerns. For the fourth quarter, it expects net sales to remain slightly below year over year.
The stock has jumped 16.03% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Owens Corning a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Owens Corning (OC - Free Report) ten years ago? It may not have been easy to hold on to OC for all that time, but if you did, how much would your investment be worth today?
Owens Corning's Business In-Depth
With that in mind, let's take a look at Owens Corning's main business drivers.
Owens Corning is a world leader in building materials systems and composite solutions. Since its inception in 1938, the company has evolved as a market-leading innovator of glass fiber technology. Its products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
The company has three reportable segments — Composites, Insulation and Roofing.
Composites segment (accounting for 27.3% of total 2022 sales) includes vertically integrated downstream activities and specializes in the production of glass fiber reinforcement materials. Demand for composites is driven by general global economic activity and by the increasing replacement of traditional materials such as aluminum, wood and steel with composites that offer lighter weight, improved strength, lack of conductivity and corrosion resistance.
Insulation segment (38%) products include thermal and acoustical batts, loose-fill insulation, foam sheathing and accessories, glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation as well as foam insulation. Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency.
Roofing segment (37.5%) products include laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials and oxidized asphalt. Demand for products in the Roofing segment is generally driven by residential repair and remodeling activity and by new residential construction. Roofing damage from major storms can significantly increase demand in the segment.
[Note: For 2022, corporate eliminations constituted 2.8% of net sales]
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Owens Corning ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $3,944.88, or a 294.49% gain, as of December 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 165.82% and gold's return of 56.24% over the same time frame.
Looking ahead, analysts are expecting more upside for OC.
Shares of Owens Corning have outperformed its industry in the past year. The company is benefiting from the solid performance of the Roofing segment driven by higher volumes related to storm activity, favorable mix and positive price realization. Customer mix and strategic buyouts are added benefits. The company’s focus on new product and process innovation bodes well. In the first three quarters, the company has unveiled 25 new or refreshed products across the three businesses. Notably, earnings estimates for the fourth quarter have moved up in the past 30 days. However, increasing pressure in some of the industrial and international markets, higher interest rates and ongoing geopolitical tensions remain concerns. For the fourth quarter, it expects net sales to remain slightly below year over year.
The stock has jumped 16.03% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023; the consensus estimate has moved up as well.