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Owens Corning (OC) Declines More Than Market: Some Information for Investors

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In the latest trading session, Owens Corning (OC - Free Report) closed at $146.07, marking a -2.35% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. On the other hand, the Dow registered a gain of 0.57%, and the technology-centric Nasdaq decreased by 0.33%.

Prior to today's trading, shares of the construction materials company had lost 1.8% lagged the Construction sector's gain of 0.5% and the S&P 500's gain of 2.57%.

The upcoming earnings release of Owens Corning will be of great interest to investors. The company is forecasted to report an EPS of $3.82, showcasing a 12.79% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.72 billion, indicating a 10.59% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $13.84 per share and a revenue of $10.48 billion, demonstrating changes of -13.01% and -4.54%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Owens Corning. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Owens Corning presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Owens Corning has a Forward P/E ratio of 10.81 right now. For comparison, its industry has an average Forward P/E of 19.62, which means Owens Corning is trading at a discount to the group.

Also, we should mention that OC has a PEG ratio of 10.59. 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 average PEG ratio for the Building Products - Miscellaneous industry stood at 1.92 at the close of the market yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 37% of all 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.

To follow OC in the coming trading sessions, be sure to utilize Zacks.com.


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