Owens Corning (OC) ended the recent trading session at $126.62, demonstrating a -1.59% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
The construction materials company's shares have seen a decrease of 14.57% over the last month, not keeping up with the Construction sector's loss of 11.29% and the S&P 500's loss of 2.43%.
Market participants will be closely following the financial results 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. Simultaneously, our latest consensus estimate expects the revenue to be $2.63 billion, showing a 2.14% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.94 per share and revenue of $9.97 billion, which would represent changes of -17.51% and -1.35%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Owens Corning is carrying a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Owens Corning is presently being traded at a Forward P/E ratio of 12.94. This expresses a discount compared to the average Forward P/E of 16.2 of its industry.
It's also important to note that OC currently trades at a PEG ratio of 1.93. 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 1.42 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 100, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).