In the latest trading session, Owens Corning (OC) closed at $158.96, marking a +1.86% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 1.52%.
Heading into today, shares of the construction materials company had gained 27.26% over the past month, outpacing the Construction sector’s gain of 5.5% and the S&P 500’s loss of 1.82%.
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 $3.02, showcasing a 28.27% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.66 billion, indicating a 3.26% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and a revenue of $9.83 billion, representing changes of -20.91% and -2.67%, respectively, from the prior year.
Any recent changes to analyst estimates for Owens Corning should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Owens Corning possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 16.38. This signifies a discount in comparison to the average Forward P/E of 18.95 for its industry.
Also, we should mention that OC has a PEG ratio of 2.83. 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. The average PEG ratio for the Building Products – Miscellaneous industry stood at 1.59 at the close of the market yesterday.
