Back to top

Image: Bigstock

Owens Corning (OC) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

In the latest trading session, Owens Corning (OC - Free Report) closed at $137.99, marking a +1.88% move from the previous day. This change outpaced the S&P 500's 1.11% gain on the day. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.

Shares of the construction materials company witnessed a gain of 1.23% over the previous month, trailing the performance of the Construction sector with its gain of 2.35%, and the S&P 500's gain of 3.92%.

The investment community will be paying close attention to the earnings performance of Owens Corning in its upcoming release. The company's earnings per share (EPS) are projected to be $3.8, reflecting a 18.1% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.7 billion, down 3.03% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.24 per share and revenue of $10.38 billion, which would represent changes of -16.78% and -5.46%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Owens Corning. Such recent modifications usually signify the changing landscape of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Owens Corning currently has a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Owens Corning is currently being traded at a Forward P/E ratio of 10.23. This valuation marks a discount compared to its industry average Forward P/E of 16.42.

One should further note that OC currently holds a PEG ratio of 3.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Miscellaneous industry had an average PEG ratio of 1.75 as trading concluded yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Owens Corning Inc (OC) - free report >>

Published in