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Owens Corning (OC) Laps the Stock Market: Here's Why

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In the latest trading session, Owens Corning (OC - Free Report) closed at $118.36, marking a +1.08% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.

Shares of the construction materials company have depreciated by 13.08% over the course of the past month, underperforming the Construction sector's loss of 2.15%, and the S&P 500's gain of 0.55%.

The upcoming earnings release of Owens Corning will be of great interest to investors. The company is forecasted to report an EPS of $2.97, showcasing a 19.07% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 2.14% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.89 per share and a revenue of $10.03 billion, representing changes of -17.93% and -0.69%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.58% lower. Currently, Owens Corning is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Owens Corning is presently trading at a Forward P/E ratio of 11.84. This expresses a discount compared to the average Forward P/E of 15.64 of its industry.

One should further note that OC currently holds a PEG ratio of 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 22% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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