Core Viewpoint - Owens Corning's strategic growth initiatives and investments are expected to drive future growth, particularly in the Insulation and Roofing segments, despite facing inflationary pressures and labor challenges [1][2]. Factors Supporting Owens Corning's Growth - Strategic growth initiatives focus on expanding product offerings, optimizing networks, and automating processes, enhancing efficiency and cost-effectiveness, leading to stronger profits and growth [3]. - The Composites segment is expanding key product platforms like non-wovens and investing in new product lines, including structural composite lumber and decking [4]. - In the Roofing segment, the company is expanding its contractor network, innovating new products, and increasing shingle capacity, which has led to significant capital investments over the past two years [5]. - The acquisition of Masonite strengthens Owens Corning's position in residential and commercial markets, diversifying its portfolio and accelerating growth [6]. - Commitment to product innovation, including new weather-resistant barriers and product lines, ensures the company stays ahead of market trends, with 13 new or improved products launched in Q1 2024 [7]. - The roofing segment has shown steady growth, with a 2% year-over-year increase in top-line performance during the first half of 2024, driven by higher selling prices and a favorable product mix [8]. Financial Strength - Owens Corning maintains a solid liquidity position of $1.4 billion as of June 30, consisting of $254 million in cash and cash equivalents and $1.1 billion available on bank debt facilities, with a debt-to-EBITDA ratio of 2.2x [10][9]. Hurdles to Cross - The company anticipates flat or declining revenues in certain segments for Q3, particularly in roofing and doors, with industry shipments for U.S. shingle end-market demand expected to decline mid-to-high single digits [10][11]. - Inflationary pressures and rising costs of raw materials continue to challenge profitability, particularly in insulation and roofing segments [12]. - Currency risks from operations in Europe and Asia-Pacific have affected sales and profits, with global economic uncertainties potentially exacerbating these issues [13]. - The company's performance is closely tied to the housing market, with higher inflation impacting housing affordability and potentially dampening demand for building materials [14].

Core Viewpoint - Owens Corning (OC) has been a highly searched stock recently, indicating potential interest and volatility in its performance [1] Group 1: Stock Performance - Shares of Owens Corning have returned +8.8% over the past month, outperforming the Zacks S&P 500 composite's +5.4% and the Zacks Building Products - Miscellaneous industry's +9.1% [2] - The key question remains regarding the stock's direction in the near term, influenced by both media reports and fundamental factors [2] Group 2: Earnings Estimates - Owens Corning is expected to post earnings of $4.01 per share for the current quarter, reflecting a year-over-year decline of -3.4% [5] - The consensus earnings estimate for the current fiscal year is $15.39, indicating a year-over-year increase of +6.7% [5] - For the next fiscal year, the consensus estimate is $16.04, suggesting a growth of +4.3% compared to the previous year [6] Group 3: Revenue Growth - The consensus sales estimate for the current quarter is $3.04 billion, representing a year-over-year increase of +22.7% [9] - Estimated revenues for the current and next fiscal years are $10.97 billion and $11.89 billion, indicating changes of +13.4% and +8.4%, respectively [9] Group 4: Recent Results and Surprises - In the last reported quarter, Owens Corning achieved revenues of $2.79 billion, a year-over-year increase of +8.8%, with an EPS of $4.64 compared to $4.22 a year ago [10] - The reported revenues were -2.95% below the Zacks Consensus Estimate, while the EPS exceeded estimates by +6.18% [11] - The company has consistently beaten consensus EPS estimates over the last four quarters and has topped revenue estimates twice [11] Group 5: Valuation - Owens Corning is graded B in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [13][14] Group 6: Overall Outlook - The Zacks Rank 3 (Hold) suggests that Owens Corning may perform in line with the broader market in the near term [7][16]

Owens Corning (OC) closed at $182.08 in the latest trading session, marking a +0.36% move from the prior day. The stock lagged the S&P 500's daily gain of 0.97%. At the same time, the Dow added 0.3%, and the techheavy Nasdaq gained 1.45%. Prior to today's trading, shares of the construction materials company had gained 15.89% over the past month. This has outpaced the Construction sector's gain of 8.21% and the S&P 500's gain of 5.41% in that time. Market participants will be closely following the financial ...

Owens Corning (OC) ended the recent trading session at $170.79, demonstrating a +1.8% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.2%. Prior to today's trading, shares of the construction materials company had gained 3.19% over the past month. This has lagged the Construction sector's gain of 5.35% and outpaced the S&P 500's gain of 1.54% in that time. Analysts and ...

Core Viewpoint - Owens Corning reported mixed results for Q2 2024, with earnings exceeding estimates while net sales fell short, driven by strong commercial execution and the acquisition of Masonite [2][3]. Financial Performance - Adjusted EPS was $4.64, surpassing the consensus estimate of $4.37 by 6.2% and increasing 9% from $4.25 a year ago [3]. - Net sales reached $2.79 billion, missing the consensus mark of $2.87 billion by 3% but reflecting a 9% year-over-year increase from $2.56 billion [3]. Segment Performance - Composites segment net sales decreased 12% year-over-year to $546 million due to lower volumes and price declines [4]. - Insulation segment net sales were $916 million, up 1% year-over-year, with strong North American demand but weaker European performance [6]. - Roofing segment net sales decreased 2% year-over-year to $1.11 billion, affected by lower volumes but offset by positive price realization [8]. - Doors segment reported net sales of $311 million, meeting expectations despite market pressures [9]. Margin Analysis - EBIT margin contracted to 11% from 14% year-over-year, while EBITDA margins decreased to 19% from 21% [5]. - Insulation segment EBIT margin rose 200 bps to 20%, with EBITDA margin increasing to 26% from 24% [7]. - Roofing segment EBIT and EBITDA margins expanded to 34% and 35%, respectively, due to strong commercial execution [9]. Cash Flow and Balance Sheet - Net cash provided by operating activities was $517 million, up from $330 million in the previous year [11]. - As of June 30, 2024, cash and cash equivalents totaled $254 million, down from $1.62 billion at the end of 2023, while long-term debt rose to $5.02 billion from $2.62 billion [10]. Q3 and 2024 Outlook - For Q3, the company expects net sales growth in the low-20% range and EBIT margin in the high teens [14]. - The 2024 outlook includes increased corporate expenses and interest expenses, with capital additions estimated at approximately $650 million [15]. Market Trends - The company anticipates ongoing demand for single-family new construction and solid non-discretionary repair and remodeling activity, despite soft discretionary activity [12][13].

In the latest trading session, Owens Corning (OC) closed at $159.98, marking a +0.23% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.3%. Shares of the construction materials company have appreciated by 1.29% over the course of the past month, underperforming the Construction sector's gain of 1.53% and the S&P 500's gain of 3.64%. Analysts and investors alike will be keeping a close ey ...

Core Viewpoint - Owens Corning (OC) has experienced a 7.1% decline in stock value over the past three months, contrasting with a 9.5% growth in the Zacks Building Products - Miscellaneous industry, despite healthy demand in the North American building and construction market [1][2] Group 1: Volume and Revenue Expectations - For Q3, Owens Corning anticipates flat to slightly declining Roofing revenues year-over-year, with U.S. shingle end-market demand expected to decrease by mid-to-high single digits [4] - The company projects a decline in discretionary repair and remodeling activity, particularly affecting demand for Doors products, with expected top-line performance down by high-single digits [5] - In the Composites segment, overall revenues are expected to decrease by low to mid-single digits, with pricing anticipated to decline year-over-year [6] Group 2: Cost Pressures - Owens Corning is facing significant inflationary pressures, with total restructuring, acquisition, and divestiture-related costs amounting to $129 million in the first half of 2024, compared to gains of $124 million in the same period last year [7] - Input materials are expected to experience inflationary pressures across all business segments, impacting manufacturing investments in U.S. fiberglass insulation [8] Group 3: Currency and Economic Challenges - The company is exposed to risks from unfavorable foreign currency movements due to its operations in Europe and Asia-Pacific, alongside dependence on housing market demand [9]

Core Points - Cincinnati Affordable Contracting has been recognized as an Owens Corning Preferred Contractor, highlighting its commitment to high-quality work and customer satisfaction [1][2][8] - The recognition allows the company to offer better warranties and exclusive access to premium Owens Corning materials, enhancing service delivery [5][10] - The company has built a strong reputation in the Greater Cincinnati area, supported by a comprehensive portfolio of successful projects [6][10] Company Services - Cincinnati Affordable Contracting provides a wide range of services including roofing, gutter installation, siding repair, painting, junk removal, fence installation, deck staining, and drywall work [3][7] - The roofing services include thorough inspections, repairs, and replacements, focusing on extending the longevity of roofs [3][4] - The company emphasizes the use of top-quality materials and advanced techniques for leak detection and repair [4][8] Commitment to Quality - The recognition as an Owens Corning Preferred Contractor reaffirms the company's dedication to maintaining high standards in the construction industry [4][8] - The company aims to exceed industry benchmarks and ensure client satisfaction through professional services [4][8] - Cincinnati Affordable Contracting's focus on quality workmanship and customer service is integral to its operations [2][10]

Wall Street analysts understand that their reputations and careers are on the line each time they issue a recommendation for—or against—a stock. Knowing this, investors would find the weight of the decisionmaking and stock rating all the more important now that the S&P 500 has survived one of the worst weeks of 2024. During volatile times, each analyst boost carries double weight. After the so-called "Carry Trade" between U.S. dollars and the Japanese yen started to unwind due to interest rate hikes in Japa ...

Company Performance - Owens Corning reported revenue of $2.79 billion, missing analysts' expectations of $2.92 billion but showing an increase from $2.56 billion in the same quarter of 2023 [2] - The company realized revenue of $311 million from its acquisition of Masonite, which significantly impacted overall revenue performance [3] - Owens Corning generated $336 million of free cash flow in the quarter and returned $52 million to shareholders via dividends [8] Market Context - The stock of Owens Corning is down over 10% for the week following the earnings report, attributed to a broader market sell-off [1] - The company is heavily reliant on a healthy market for new home construction and remodeling activities, which are currently under pressure [5] - Investors are cautious as discretionary repair and remodeling activities are expected to remain soft in the near term, while demand for non-discretionary items is anticipated to be healthy [6] Analyst Sentiment - Analysts maintain a Moderate Buy rating on Owens Corning stock, with a consensus price target of $184.23, indicating an 18.19% upside potential [11] - The Royal Bank of Canada raised its price target for Owens Corning from $211 to $213, reflecting continued bullish sentiment [11] - Historical trends suggest that the current dip in stock price may present a buying opportunity, as the stock has previously recovered from similar sell-offs [9][10] Financial Metrics - The company ended the quarter with a debt-to-adjusted EBITDA ratio of 2.2x, at the low end of its target range of 2x to 3x [8] - Owens Corning's forward P/E ratio of 9.8x is significantly lower than the average in the Construction Materials sector, indicating potential value [8] Trading Activity - Short interest in Owens Corning stock spiked by 11% in the last month, suggesting increased pressure on the stock [12] - The Options Chain indicates significant interest in Put options as a hedge, with strike prices at $170 and $175 [12]