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Owens Corning (OC) Stock Sinks As Market Gains: Here's Why
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Owens Corning (OC - Free Report) ended the recent trading session at $116.58, demonstrating a -2.37% change from the preceding day's closing price. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 1.6%.
Prior to today's trading, shares of the construction materials company had gained 9.6% outpaced the Construction sector's gain of 7.69% and the S&P 500's gain of 5.15%.
Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.94, reflecting a 68.35% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.16 billion, indicating a 14.77% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.43 per share and revenue of $9.69 billion, indicating changes of -21.74% and -4.08%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.79% downward. Owens Corning is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 12.66. This denotes a discount relative to the industry average Forward P/E of 17.59.
Investors should also note that OC has a PEG ratio of 2.05 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.33 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Owens Corning (OC) Stock Sinks As Market Gains: Here's Why
Owens Corning (OC - Free Report) ended the recent trading session at $116.58, demonstrating a -2.37% change from the preceding day's closing price. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 1.6%.
Prior to today's trading, shares of the construction materials company had gained 9.6% outpaced the Construction sector's gain of 7.69% and the S&P 500's gain of 5.15%.
Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.94, reflecting a 68.35% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.16 billion, indicating a 14.77% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.43 per share and revenue of $9.69 billion, indicating changes of -21.74% and -4.08%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.79% downward. Owens Corning is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 12.66. This denotes a discount relative to the industry average Forward P/E of 17.59.
Investors should also note that OC has a PEG ratio of 2.05 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.33 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.