Owens Corning (OC) closed at $122.88 in the latest trading session, marking a -2.98% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Shares of the construction materials company have depreciated by 13.61% over the course of the past month, underperforming the Construction sector's loss of 5.73%, and the S&P 500's gain of 1.26%.
The investment community will be paying close attention to the earnings performance of Owens Corning in its upcoming release. The company's earnings per share (EPS) are projected to be $3.2, reflecting a 12.81% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.63 billion, indicating a 2.14% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.94 per share and a revenue of $9.97 billion, signifying shifts of -17.51% and -1.35%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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 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, there's been no change in the Zacks Consensus EPS estimate. Right now, Owens Corning possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Owens Corning is presently being traded at a Forward P/E ratio of 12.74. This represents a discount compared to its industry average Forward P/E of 16.01.
We can also see that OC currently has a PEG ratio of 1.9. 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 average PEG ratio for the Building Products - Miscellaneous industry stood at 1.48 at the close of the market yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Owens Corning Inc (OC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).