Owens Corning (OC) closed at $171.61 in the latest trading session, marking a +1.68% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The construction materials company's shares have seen a decrease of 14.3% over the last month, not keeping up with the Construction sector's loss of 11.66% and the S&P 500's loss of 2.8%.
Analysts and investors alike will be keeping a close eye on the performance of Owens Corning in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.84, showcasing a 11.53% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.78 billion, up 20.53% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Owens Corning presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 10.71. This expresses a discount compared to the average Forward P/E of 17.23 of its industry.
One should further note that OC currently holds a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.85.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 22% of over 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.
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