Owens Corning (OC) Outpaces Stock Market Gains: What You Should Know


Owens Corning (OC) closed at $88.83 in the latest trading session, marking a +1.75% move from the prior day. This change outpaced the S&P 500’s 0.62% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Prior to today’s trading, shares of the construction materials company had lost 2.4% over the past month. This has lagged the Construction sector’s gain of 0.44% and the S&P 500’s gain of 0.87% in that time.

Owens Corning will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.90, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 4.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.74 per share and revenue of $8.38 billion. These totals would mark changes of +67.75% and +18.79%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Owens Corning. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, the Zacks Consensus EPS estimate remained stagnant. Owens Corning is currently a Zacks Rank #3 (Hold).

Investors should also note Owens Corning’s current valuation metrics, including its Forward P/E ratio of 10.16. This represents a discount compared to its industry’s average Forward P/E of 24.9.

Meanwhile, OC’s PEG ratio is currently 0.35. 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 industry currently had an average PEG ratio of 0.9 as of yesterday’s close.

The Building Products – Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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