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Owens Corning (OC) closed at $169.41 in the latest trading session, marking a -0.05% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.03%.
Heading into today, shares of the construction materials company had lost 14.21% over the past month, lagging the Construction sector's loss of 8.88% and the S&P 500's loss of 0.71% in that time.
The upcoming earnings release of Owens Corning will be of great interest to investors. The company is forecasted to report an EPS of $2.84, showcasing a 11.53% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.78 billion, showing a 20.53% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.46 per share and a revenue of $10.91 billion, representing changes of +7.21% and +12.76%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Owens Corning. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Owens Corning holds a Zacks Rank of #3 (Hold).
In the context of valuation, Owens Corning is at present trading with a Forward P/E ratio of 10.96. This denotes a discount relative to the industry's average Forward P/E of 17.72.
It is also worth noting that OC currently has a PEG ratio of 1.9. 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. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.