Track market-moving stories before they get noisy

In the latest trading session, Owens Corning (OC - Free Report) closed at $141.11, marking a -1.56% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.

Shares of the construction materials company witnessed a gain of 18.04% over the previous month, beating the performance of the Construction sector with its gain of 2.79%, and the S&P 500's gain of 4.28%.

The upcoming earnings release of Owens Corning will be of great interest to investors. The company is forecasted to report an EPS of $3.02, showcasing a 28.27% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.67 billion, indicating a 2.75% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and revenue of $9.93 billion, which would represent changes of -20.91% and -1.68%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Owens Corning. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Owens Corning holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Owens Corning is holding a Forward P/E ratio of 15.05. This expresses a discount compared to the average Forward P/E of 18.01 of its industry.

Meanwhile, OC's PEG ratio is currently 2.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.54.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Owens Corning (OC +0.32%), a storied company though rarely an investor darling, was a popular stock on the exchange in the holiday-shortened trading week. That was traceable to a media report that stated the company had received a buyout offer. According to data compiled by S&P Global Market Intelligence, Owens Corning's equity zoomed almost 11% higher over the four-day stretch.

A big deal, if it's agreed Owens Corning, a construction supplies company perhaps best known for its pink residential insulation products, was the target of an unsolicited bid from industry peer Carlisle.

Image source: Getty Images.

That's the assertion of The Wall Street Journal, which published an article stating that Carlisle made a series of bids, at least one of which valued a deal at well over $10 billion. Citing unidentified "people familiar with the matter," the financial newspaper added that Owens Corning hasn't yet "engaged substantially" with its apparent suitor.

According to the article's sources, Carlisle was considering its next move in the effort. The WSJ said that its offers consisted of a mix of cash and stock.

Neither company has yet officially commented on the report.

Today's Change

(

0.32

%) $

0.48

Current Price

$

151.06

Potent combination On paper, it makes a great deal of sense to combine these two complementary businesses.

But if the article is accurate, Owens Corning could either be holding out for a higher price or shunning Carlisle entirely -- it recently retooled its business strategy, and management might be waiting for the change to take effect before evaluating the company's future. Given all that, I wouldn't trade into or out of Owens Corning on this speculation.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Carlisle Companies and Owens Corning. The Motley Fool has a disclosure policy.