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

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Owens Corning (OC - Free Report) closed at $157.69 in the latest trading session, marking a +2.98% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.85%. Elsewhere, the Dow saw an upswing of 1.36%, while the tech-heavy Nasdaq appreciated by 0.72%.

The stock of construction materials company has fallen by 1.47% in the past month, lagging the Construction sector's gain of 3.27% and the S&P 500's gain of 2.38%.

The upcoming earnings release of Owens Corning will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.82, reflecting a 12.79% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.72 billion, down 10.59% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.84 per share and revenue of $10.48 billion, which would represent changes of -13.01% and -4.54%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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 a 2.28% increase. As of now, Owens Corning holds a Zacks Rank of #3 (Hold).

With respect to valuation, Owens Corning is currently being traded at a Forward P/E ratio of 11.06. This represents a discount compared to its industry average Forward P/E of 19.59.

We can also see that OC currently has a PEG ratio of 10.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.87.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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