Why Owens Corning (OC) Outpaced the Stock Market Today

Owens Corning (OC) closed at $107.90 in the latest trading session, marking a +1.35% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.01%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Prior to today's trading, shares of the construction materials company had lost 20.67% lagged the Construction sector's loss of 12.24% and the S&P 500's loss of 2.86%.

The upcoming earnings release of Owens Corning will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 59.26% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.13 billion, indicating a 15.64% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.01 per share and a revenue of $9.74 billion, signifying shifts of -16.93% and -3.58%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Owens Corning. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.42% downward. As of now, Owens Corning holds a Zacks Rank of #4 (Sell).

Looking at valuation, Owens Corning is presently trading at a Forward P/E ratio of 10.64. This indicates a discount in contrast to its industry's Forward P/E of 16.86.

It is also worth noting that OC currently has a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Miscellaneous industry had an average PEG ratio of 1.32.

The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 183, this industry ranks in the bottom 26% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Owens Corning Inc (OC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research