Owens Corning (OC) Valuation Check As Shares Show Short Term Momentum Shift
Why Owens Corning Is On Investors’ Radar Today
Owens Corning (OC) has drawn attention after a period of mixed share performance, with a small move higher over the past week and month contrasting with weaker returns in the past 3 months and year.
See our latest analysis for Owens Corning.
At a share price of $114.15, Owens Corning’s recent 1 day share price return of 2.0% and weaker 1 year total shareholder return of 32.3% suggest short term momentum is picking up while longer term performance has been more mixed.
If this kind of move has your attention, it could be a good moment to widen your watchlist and check out fast growing stocks with high insider ownership.
With a value score of 5, a recent share price of $114.15, and an indicated intrinsic discount, the key question is simple: are you looking at an undervalued building products player, or is the market already pricing in future growth?
Most Popular Narrative: 18.8% Undervalued
Against a last close of $114.15, the most followed narrative points to a higher fair value, built on detailed earnings and margin assumptions.
Analysts expect earnings to reach $1.6 billion (and earnings per share of $16.52) by about September 2028, up from $702.0 million today. In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 11.1x on those 2028 earnings, down from 17.8x today.
Want to see what ties those earnings, margins and future P/E together into a single fair value? The narrative connects them in a way the share price does not.
Result: Fair Value of $140.56 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on Owens Corning avoiding prolonged weakness in housing related demand and effectively managing pricing pressure in roofing and insulation markets.
Find out about the key risks to this Owens Corning narrative.
Build Your Own Owens Corning Narrative
If you are not fully on board with this view, or prefer to lean on your own research, you can build a custom story in minutes with Do it your way.
A great starting point for your Owens Corning research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
Ready For More Investment Ideas?
If Owens Corning has you thinking more broadly about opportunities, do not stop here. Your next strong idea could be sitting in plain sight.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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