Wells Fargo Maintains Overweight on Owens Corning, Raises PT to $165.

Wells Fargo Maintains Overweight on Owens Corning, Raises PT to $165.

Wells Fargo & Company (WFC) has maintained an Overweight rating on Owens Corning (OC) and raised its price target to $165. The update comes amidst a backdrop of mixed analyst sentiment and recent earnings projections for Owens Corning. The move by Wells Fargo reflects the company's positive outlook on Owens Corning's future performance and growth prospects.

Owens Corning closed the most recent trading day at $145.57, moving +1.48% from the previous trading session. This change outpaced the S&P 500's 0.48% gain on the day. Heading into today, shares of the construction materials company had gained 5.63% over the past month, lagging the Construction sector's gain of 6.17% and outpacing the S&P 500's gain of 5.13% [2].

The company is projected to report earnings of $3.8 per share, which would represent a year-over-year decline of 18.1%. Meanwhile, the latest consensus estimate is calling for revenue of $2.7 billion, down 3.03% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.24 per share and a revenue of $10.38 billion, representing changes of -16.78% and -5.46%, respectively, from the prior year [2].

Wells Fargo's decision to raise the price target to $165 comes despite the recent downward revisions in earnings estimates. The company's Zacks Rank of #5 (Strong Sell) reflects a cautious outlook, but the new price target suggests that Wells Fargo believes the stock is undervalued. The PEG ratio of 3.79 indicates that the company's expected earnings growth trajectory is favorable compared to the industry average [2].

Investors should keep an eye on the upcoming earnings report for Owens Corning, as it is projected to be released soon. The Zacks Rank system, which has an impressive outside-audited track record of outperformance, will provide a simple, actionable rating system for investors to consider. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and can help investors make informed decisions based on the latest estimate changes and stock-moving metrics [2].

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46289369/wells-fargo-gears-up-for-q2-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-analysts
[2] https://finance.yahoo.com/news/owens-corning-oc-exceeds-market-220004410.html