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Is Owens Corning (OC) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Owens Corning (OC - Free Report) . OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.81. This compares to its industry's average Forward P/E of 16.06. Over the last 12 months, OC's Forward P/E has been as high as 12.28 and as low as 7.93, with a median of 10.08.
Investors should also note that OC holds a PEG ratio of 1.06. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OC's PEG compares to its industry's average PEG of 1.31. Over the past 52 weeks, OC's PEG has been as high as 2.14 and as low as 0.75, with a median of 1.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OC has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.58.
Finally, our model also underscores that OC has a P/CF ratio of 7.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OC's P/CF compares to its industry's average P/CF of 20.48. Over the past year, OC's P/CF has been as high as 7.46 and as low as 4.37, with a median of 5.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Owens Corning is likely undervalued currently. And when considering the strength of its earnings outlook, OC sticks out at as one of the market's strongest value stocks.
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Is Owens Corning (OC) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Owens Corning (OC - Free Report) . OC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.81. This compares to its industry's average Forward P/E of 16.06. Over the last 12 months, OC's Forward P/E has been as high as 12.28 and as low as 7.93, with a median of 10.08.
Investors should also note that OC holds a PEG ratio of 1.06. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OC's PEG compares to its industry's average PEG of 1.31. Over the past 52 weeks, OC's PEG has been as high as 2.14 and as low as 0.75, with a median of 1.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. OC has a P/S ratio of 1.37. This compares to its industry's average P/S of 1.58.
Finally, our model also underscores that OC has a P/CF ratio of 7.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OC's P/CF compares to its industry's average P/CF of 20.48. Over the past year, OC's P/CF has been as high as 7.46 and as low as 4.37, with a median of 5.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Owens Corning is likely undervalued currently. And when considering the strength of its earnings outlook, OC sticks out at as one of the market's strongest value stocks.