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Owens Corning (OC) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest market close, Owens Corning (OC - Free Report) reached $166.80, with a -0.25% movement compared to the previous day. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the construction materials company had gained 11.55% over the past month, outpacing the Construction sector's gain of 7.71% and the S&P 500's gain of 3.55% in that time.

Investors will be eagerly watching for the performance of Owens Corning in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.03, signifying a 9.39% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.27 billion, down 2.83% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.08 per share and revenue of $9.62 billion. These totals would mark changes of -2.36% and -0.61%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% lower. Owens Corning presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 11.88. This expresses a discount compared to the average Forward P/E of 19.96 of its industry.

One should further note that OC currently holds a PEG ratio of 0.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.86 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 8, placing it within the top 4% 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.

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