Owens ning(US:OC) ZACKSยท2025-04-28 23:05Core Viewpoint - Owens Corning is facing a challenging earnings outlook with a projected decline in EPS while revenue is expected to increase, indicating mixed performance in the upcoming earnings report [2][3]. Group 1: Stock Performance - Owens Corning's stock closed at $143.96, reflecting a slight decrease of -0.08% compared to the previous day, underperforming against the S&P 500's gain of 0.06% [1]. - Over the past month, the stock has increased by 1.02%, contrasting with a 6.22% loss in the Construction sector and a 4.29% loss in the S&P 500 [1]. Group 2: Earnings Forecast - The company is expected to report an EPS of $2.82 for the upcoming earnings release on May 7, 2025, which represents a 21.45% decrease from the same quarter last year [2]. - The revenue forecast for the same quarter is $2.52 billion, indicating a 9.41% increase year-over-year [2]. - For the full year, analysts anticipate earnings of $14.10 per share and revenue of $10.58 billion, reflecting declines of -11.38% and -3.62% respectively from the previous year [3]. Group 3: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Owens Corning are crucial as they reflect changing business trends, with positive revisions seen as a favorable sign for the company's outlook [4]. - The Zacks Rank system currently rates Owens Corning at 4 (Sell), following a 3.35% decline in the Zacks Consensus EPS estimate over the past month [6]. Group 4: Valuation Metrics - Owens Corning has a Forward P/E ratio of 10.22, which is lower than the industry average of 15.47, indicating a potential undervaluation [7]. - The company has a PEG ratio of 3.57, compared to the industry average PEG ratio of 1.88, suggesting that the market may be pricing in lower growth expectations [8]. Group 5: Industry Context - The Building Products - Miscellaneous industry, which includes Owens Corning, ranks 152 out of over 250 industries, placing it in the bottom 39% of the Zacks Industry Rank [9].