Back to top

Image: Bigstock

Owens Corning (OC) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

Owens Corning (OC - Free Report) closed the most recent trading day at $145.57, moving +1.48% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.

Heading into today, shares of the construction materials company had gained 5.63% over the past month, lagging the Construction sector's gain of 6.17% and outpacing the S&P 500's gain of 5.13%.

Market participants will be closely following the financial results of Owens Corning in its upcoming release. On that day, Owens Corning is projected to report earnings of $3.8 per share, which would represent a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $2.7 billion, down 3.03% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.24 per share and a revenue of $10.38 billion, representing 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. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Owens Corning boasts a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Owens Corning has a Forward P/E ratio of 10.83 right now. Its industry sports an average Forward P/E of 17.74, so one might conclude that Owens Corning is trading at a discount comparatively.

We can additionally observe that OC currently boasts a PEG ratio of 3.79. 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 1.89 as trading concluded yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

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

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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