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Owens Corning (OC) to Buy Masonite, Eyes Strategic Reviews for GR
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Owens Corning (OC - Free Report) , a renowned player in global building materials, has signed an agreement to acquire Masonite International Corporation (DOOR - Free Report) , a leading provider of doors and door systems. The acquisition, valued at approximately $3.9 billion, signifies OC's commitment to expanding its offerings in residential building materials.
Shares of Owens Corning lost 7.1% during the trading session but gained 1.8% in the after-hour trading session on Feb 9, 2024.
Masonite Acquisition
Masonite's doors business, known for its innovation and quality, aligns seamlessly with OC's existing product portfolio. With Masonite's market-leading position and OC's commercial prowess, the synergy is expected to drive growth in the doors market. Leveraging OC's go-to-market model, the combined entity aims to capitalize on opportunities in residential construction.
Founded in 1925, Masonite operates globally with a vertically integrated manufacturing model. Its strong presence in North America, coupled with more than 10,000 employees, enhances OC's footprint in key markets. The strategic acquisition not only boosts OC's revenue potential but also presents opportunities for margin expansion.
Strategic Alternatives for Global Glass Reinforcements (GR)
In parallel, OC has announced its intention to explore strategic alternatives for its global GR business. This decision aligns with OC's focus on building and construction materials. The GR business, generating approximately $1.3 billion in annual revenues, operates across 11 countries and serves various markets, including wind energy and transportation.
OC's move to evaluate options for the GR business underscores its commitment to optimizing performance and capital allocation. By honing its focus on core activities like the glass nonwovens business and recent acquisitions such as WearDeck, OC aims to strengthen its position in building materials.
In conclusion, OC's acquisition of Masonite positions the company for growth in the residential building materials segment. Simultaneously, its strategic review of the GR business reflects OC's dedication to maximizing shareholder value and capitalizing on emerging opportunities in the building and construction sector. As OC continues to evolve its strategic roadmap, investors can anticipate further advancements in its market position and revenue diversification.
Share Price Performance
Shares of Owens Corning have surged 45.6% in the past year, outperforming the Zacks Building Products - Miscellaneous industry’s 41% growth. Owens Corning’s consistent focus on productivity and process innovations will help it to ensure growth momentum in the upcoming period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2024 earnings has increased to $13.95 per share from $13.86 over the past 30 days, depicting analysts’ optimism over the stock’s prospects.
Zacks Rank & Key Picks
Owens Corning currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
NOA surpassed earnings expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 22.4%. The Zacks Consensus Estimate for NOA’s 2024 sales and EPS indicates growth of 44.1% and 51.7%, respectively, from a year ago.
Howmet Aerospace Inc. (HWM - Free Report) currently carries a Zacks Rank #2. The stock has gained 42.6% in the past year.
HWM surpassed earnings expectations in three of the trailing four quarters and met on one occasion, the average surprise being 5%. The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates growth of 7.5% and 21.7%, respectively, from a year ago.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Owens Corning (OC) to Buy Masonite, Eyes Strategic Reviews for GR
Owens Corning (OC - Free Report) , a renowned player in global building materials, has signed an agreement to acquire Masonite International Corporation (DOOR - Free Report) , a leading provider of doors and door systems. The acquisition, valued at approximately $3.9 billion, signifies OC's commitment to expanding its offerings in residential building materials.
Shares of Owens Corning lost 7.1% during the trading session but gained 1.8% in the after-hour trading session on Feb 9, 2024.
Masonite Acquisition
Masonite's doors business, known for its innovation and quality, aligns seamlessly with OC's existing product portfolio. With Masonite's market-leading position and OC's commercial prowess, the synergy is expected to drive growth in the doors market. Leveraging OC's go-to-market model, the combined entity aims to capitalize on opportunities in residential construction.
Founded in 1925, Masonite operates globally with a vertically integrated manufacturing model. Its strong presence in North America, coupled with more than 10,000 employees, enhances OC's footprint in key markets. The strategic acquisition not only boosts OC's revenue potential but also presents opportunities for margin expansion.
Strategic Alternatives for Global Glass Reinforcements (GR)
In parallel, OC has announced its intention to explore strategic alternatives for its global GR business. This decision aligns with OC's focus on building and construction materials. The GR business, generating approximately $1.3 billion in annual revenues, operates across 11 countries and serves various markets, including wind energy and transportation.
OC's move to evaluate options for the GR business underscores its commitment to optimizing performance and capital allocation. By honing its focus on core activities like the glass nonwovens business and recent acquisitions such as WearDeck, OC aims to strengthen its position in building materials.
In conclusion, OC's acquisition of Masonite positions the company for growth in the residential building materials segment. Simultaneously, its strategic review of the GR business reflects OC's dedication to maximizing shareholder value and capitalizing on emerging opportunities in the building and construction sector. As OC continues to evolve its strategic roadmap, investors can anticipate further advancements in its market position and revenue diversification.
Share Price Performance
Shares of Owens Corning have surged 45.6% in the past year, outperforming the Zacks Building Products - Miscellaneous industry’s 41% growth. Owens Corning’s consistent focus on productivity and process innovations will help it to ensure growth momentum in the upcoming period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2024 earnings has increased to $13.95 per share from $13.86 over the past 30 days, depicting analysts’ optimism over the stock’s prospects.
Zacks Rank & Key Picks
Owens Corning currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
North American Construction Group Ltd. (NOA - Free Report) currently carries a Zacks Rank #2 (Buy). The stock has declined 51.9% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NOA surpassed earnings expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 22.4%. The Zacks Consensus Estimate for NOA’s 2024 sales and EPS indicates growth of 44.1% and 51.7%, respectively, from a year ago.
Howmet Aerospace Inc. (HWM - Free Report) currently carries a Zacks Rank #2. The stock has gained 42.6% in the past year.
HWM surpassed earnings expectations in three of the trailing four quarters and met on one occasion, the average surprise being 5%. The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates growth of 7.5% and 21.7%, respectively, from a year ago.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.