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Owens Corning (OC) Ascends But Remains Behind Market: Some Facts to Note

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Owens Corning (OC - Free Report) closed at $182.08 in the latest trading session, marking a +0.36% move from the prior day. The stock lagged the S&P 500's daily gain of 0.97%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.45%.

Prior to today's trading, shares of the construction materials company had gained 15.89% over the past month. This has outpaced the Construction sector's gain of 8.21% and the S&P 500's gain of 5.41% in that time.

Market participants will be closely following the financial results of Owens Corning in its upcoming release. It is anticipated that the company will report an EPS of $4.01, marking a 3.37% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.04 billion, showing a 22.67% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.39 per share and a revenue of $10.97 billion, representing changes of +6.73% and +13.35%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Owens Corning. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Owens Corning presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Owens Corning is currently trading at a Forward P/E ratio of 11.79. This valuation marks a discount compared to its industry's average Forward P/E of 19.56.

We can also see that OC currently has a PEG ratio of 3.61. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.9 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 56, which puts it in the top 23% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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