Owens Corning (OC) is a Dividend Aristocrat with a decade-long track record of revenue growth at 8%+ and earnings growth at over 10%. The company has been on the author's dividend growth watchlist and has compounded well.
Owens Corning Inc. (OC) has been a consistent performer in the stock market, with a decade-long track record of revenue growth at 8%+ and earnings growth at over 10%. The company's stock price has shown resilience, gaining 1.01% on Friday, July 25, 2025, to close at $145.90 [1].
The stock has been in a horizontal trend, with a 90% probability of being traded between $133.73 and $153.13 at the end of the 3-month period. The company's Moving Averages (both short-term and long-term) indicate a positive forecast, with a general buy signal from the relation between the two averages [1].
The stock's recent performance includes a double bottom formation, which was identified on Wednesday, June 18, 2025, with a target of $144.37. Despite the formation, the stock has continued to perform well, with a 5.85% rise since the pivot bottom point on Monday, July 21, 2025 [1].
Owens Corning operates in three segments: roofing, insulation, and doors. The company's business model is focused on renovation, replacement, and commercial construction, with a significant portion of its revenue coming from the U.S. market [2].
The company's recent earnings report for the first quarter of 2025 showed solid performance, with revenue rising by 25% year-over-year and earnings per share (EPS) coming in at $2.97, just ahead of expectations. The adjusted EBITDA margin extended the company's long-running streak above the 20% mark [2].
The company's acquisition of Masonite in 2024 has added a new segment to its operations, with the doors segment contributing $540M in revenue at a 13% margin in its first full quarter under OC. Management expects more of the same in the second quarter, with high single-digit revenue growth and margins in the low-to-mid 20s [2].
The stock's valuation has been attractive, with a forward P/E ratio under 11x and a dividend yield above its five-year average. These factors, along with the company's strong business fundamentals, support a buy thesis for the stock [2].
References:
[1] https://stockinvest.us/stock/OC
[2] https://seekingalpha.com/article/4804854-owens-corning-from-watchlist-to-buy
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