Owens Corning (OC) ended the recent trading session at $114.16, demonstrating a -2.59% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.6%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.
The construction materials company's shares have seen a decrease of 8.07% over the last month, not keeping up with the Construction sector's loss of 3.85% and the S&P 500's gain of 1.34%.
The investment community will be paying close attention to the earnings performance of Owens Corning in its upcoming release. The company is expected to report EPS of $2.93, down 20.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, down 2.14% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.89 per share and revenue of $10.03 billion, which would represent changes of -17.93% and -0.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. Owens Corning is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Owens Corning is presently being traded at a Forward P/E ratio of 11.85. This indicates a discount in contrast to its industry's Forward P/E of 15.37.
It's also important to note that OC currently trades at a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OC's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 11% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Owens Corning Inc (OC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).