In the latest close session, Owens Corning (OC) was up +2.64% at $123.91. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.48%.
The stock of construction materials company has fallen by 15.98% in the past month, lagging the Construction sector's loss of 6.82% and the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Owens Corning in its forthcoming earnings report. The company's upcoming EPS is projected at $3.2, signifying a 12.81% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, down 2.14% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.94 per share and revenue of $9.97 billion. These totals would mark changes of -17.51% and -1.35%, respectively, from last year.
Any recent changes to analyst estimates for Owens Corning should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Owens Corning is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Owens Corning's current valuation metrics, including its Forward P/E ratio of 12.14. This signifies a discount in comparison to the average Forward P/E of 15.15 for its industry.
It's also important to note that OC currently trades at a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 29% echelons of all 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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