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Why Owens Corning (OC) Outpaced the Stock Market Today

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Owens Corning (OC - Free Report) ended the recent trading session at $170.79, demonstrating a +1.8% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.2%.

Prior to today's trading, shares of the construction materials company had gained 3.19% over the past month. This has lagged the Construction sector's gain of 5.35% and outpaced the S&P 500's gain of 1.54% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.01, marking a 3.37% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.04 billion, indicating a 22.67% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.39 per share and a revenue of $10.97 billion, representing changes of +6.73% and +13.35%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Owens Corning possesses a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 10.9. This expresses a discount compared to the average Forward P/E of 19.38 of its industry.

It is also worth noting that OC currently has a PEG ratio of 3.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.89 as of yesterday's close.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 40% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow OC in the coming trading sessions, be sure to utilize Zacks.com.


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