Owens Corning (OC) closed at $182.15 in the latest trading session, marking a +0.79% move from the prior day. This change outpaced the S&P 500's 0.39% gain on the day. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.
The construction materials company's stock has climbed by 7.08% in the past month, exceeding the Construction sector's loss of 0.7% and the S&P 500's gain of 1.7%.
Investors will be eagerly watching for the performance of Owens Corning in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.87, showcasing a 10.59% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.78 billion, indicating a 20.53% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.59% higher. As of now, Owens Corning holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Owens Corning is holding a Forward P/E ratio of 11.4. This signifies a discount in comparison to the average Forward P/E of 17.7 for its industry.
One should further note that OC currently holds a PEG ratio of 1.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.82.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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