In the latest trading session, Owens Corning (OC) closed at $117.20, marking a +2.2% move from the previous day. This change outpaced the S&P 500's 0.47% loss on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 1.25%.
The stock of construction materials company has fallen by 10.87% in the past month, lagging the Construction sector's loss of 4.19% and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Owens Corning in its upcoming release. The company's upcoming EPS is projected at $2.97, signifying a 19.07% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.63 billion, down 2.14% from the prior-year quarter.
OC's full-year Zacks Consensus Estimates are calling for earnings of $9.89 per share and revenue of $10.03 billion. These results would represent year-over-year changes of -17.93% and -0.69%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Owens Corning. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.58% lower. Owens Corning is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Owens Corning has a Forward P/E ratio of 11.6 right now. This represents a discount compared to its industry average Forward P/E of 15.83.
It's also important to note that OC currently trades at a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.43.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 11% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow OC in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).