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Owens Corning (OC) Suffers a Larger Drop Than the General Market: Key Insights

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Owens Corning (OC - Free Report) closed the most recent trading day at $130.59, moving -1.52% from the previous trading session. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.13%.

The stock of construction materials company has fallen by 6.06% in the past month, lagging the Construction sector's loss of 3.76% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company is expected to report EPS of $3.8, down 18.1% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.7 billion, reflecting a 3.03% fall from the equivalent quarter last year.

OC's full-year Zacks Consensus Estimates are calling for earnings of $13.24 per share and revenue of $10.38 billion. These results would represent year-over-year changes of -16.78% and -5.46%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Owens Corning boasts a Zacks Rank of #4 (Sell).

With respect to valuation, Owens Corning is currently being traded at a Forward P/E ratio of 10.01. For comparison, its industry has an average Forward P/E of 16.31, which means Owens Corning is trading at a discount to the group.

Also, we should mention that OC has a PEG ratio of 3.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Miscellaneous industry had an average PEG ratio of 1.7 as trading concluded yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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