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Owens Corning (OC) Stock Dips While Market Gains: Key Facts

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Owens Corning (OC - Free Report) closed at $138.72 in the latest trading session, marking a -1.53% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the construction materials company had lost 7.53% in the past month. In that same time, the Construction sector gained 2.27%, while the S&P 500 gained 4.83%.

The investment community will be closely monitoring the performance of Owens Corning in its forthcoming earnings report. The company is forecasted to report an EPS of $3.78, showcasing a 13.7% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.72 billion, reflecting a 10.59% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.65 per share and revenue of $10.48 billion, which would represent changes of -14.2% and -4.54%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Owens Corning. Such recent modifications usually signify the changing landscape of near-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.43% lower. Currently, Owens Corning is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 10.32. This indicates a discount in contrast to its industry's Forward P/E of 19.17.

One should further note that OC currently holds a PEG ratio of 10.12. 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 1.91 as trading concluded yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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