Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Owens Corning (OC)
Owens Corning is a world leader in building materials systems and composite solutions. Since its inception in 1938, the company has evolved as a market-leading innovator of glass fiber technology. Its products include glass fiber that is used to support composite materials for transportation, electronics, marine, infrastructure, wind energy and other high-performance markets for insulation as well as roofing for residential, commercial and industrial applications.
OC is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 7.2X for the current fiscal year compared to the Building Products - Miscellaneous industry's P/E of 12.5X. Additionally, OC has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 6.2X. Value investors should also note OC's Price/Sales ratio of 0.9X.
A company's earnings performance is important for value investors as well. For fiscal 2022, six analysts revised their earnings estimate higher in the last 60 days for OC, while the Zacks Consensus Estimate has increased $0.18 to $12.67 per share. OC also holds an average earnings surprise of 15.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding OC to their portfolios.
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