Owens Corning Inc (OC) Hits Fresh High: Is There Still Room to Run?

Company Performance - Owens Corning's shares have increased by 7.6% over the past month and reached a new 52-week high of $181.6, with a year-to-date gain of 22.3% compared to 10% for the Zacks Construction sector and 11.1% for the Zacks Building Products - Miscellaneous industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $3.59 against a consensus estimate of $3.04 in its last earnings report [2] - For the current fiscal year, Owens Corning is projected to achieve earnings of $15.48 per share on revenues of $11.23 billion, reflecting a 7.35% increase in EPS and a 16.03% increase in revenues [3] Valuation Metrics - The stock trades at 11.7X current fiscal year EPS estimates, below the peer industry average of 19.1X, and at 8.4X trailing cash flow compared to the peer group's average of 12.9X [7] - The company has a PEG ratio of 5.4, indicating it is not among the top value stocks [7] Zacks Rank and Style Scores - Owens Corning holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The company has a Value Score of B, a Growth Score of C, and a Momentum Score of D, resulting in a combined VGM Score of B [6] Industry Comparison - The Building Products - Miscellaneous industry is performing well, ranking in the top 18% of all industries, providing favorable conditions for both Owens Corning and its peer Frontdoor Inc. [11] - Frontdoor Inc. also has a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, beating consensus estimates by 115% [10]