Owens Corning (OC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Core Viewpoint - Owens Corning's stock has underperformed in recent weeks, with significant declines in both monthly and quarterly earnings projections, indicating potential challenges ahead for the company [1][2][3]. Financial Performance - In the latest trading session, Owens Corning's stock fell by 3.03% to $129.79, which is less than the S&P 500's daily loss of 0.28% [1]. - The company is projected to report an EPS of $3.78, reflecting a 13.70% decrease compared to the same quarter last year, with revenue expected to be $2.72 billion, down 10.59% year-over-year [2]. - For the entire fiscal year, earnings are estimated at $13.65 per share and revenue at $10.48 billion, representing declines of 14.2% and 4.54%, respectively, from the previous year [3]. Analyst Estimates and Market Sentiment - Recent changes in analyst estimates for Owens Corning suggest a cautious outlook, with positive revisions indicating some confidence in the company's performance [4]. - The Zacks Consensus EPS estimate has decreased by 1.43% over the past month, and Owens Corning currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - Owens Corning is trading at a Forward P/E ratio of 9.81, significantly lower than the industry average of 19.67, indicating it is undervalued compared to its peers [7]. - The company has a PEG ratio of 9.62, while the average PEG ratio for the Building Products - Miscellaneous industry is 1.89, suggesting a disparity in growth expectations [8]. Industry Context - The Building Products - Miscellaneous industry, which includes Owens Corning, ranks 157 out of over 250 industries, placing it in the bottom 37% of the Zacks Industry Rank [8][9].