On September 11, 2026, Owens-Corning Inc OC shares rose by 3.5% to a current price of $131.90. Despite today’s gain, the stock has experienced significant volatility, with a 52-week range between $97.53 and $159.91.
- GF Valueâ„¢ verdict: Current price of $131.90 vs. GF Value of $156.34, indicating a potential upside of 15.6%.
- GF Scoreâ„¢: 85/100, suggesting a strong overall performance.
- Most notable signal: Insiders sold $0.4M worth of shares over the past 12 months, with no purchases.
Is OC Overvalued or Undervalued?
Owens-Corning Inc's current price of $131.90 is assessed against the GF Valueâ„¢, which estimates the fair value to be $156.34, marking the stock as approximately 15.6% undervalued. However, it's essential to note that the GF Valueâ„¢ is derived from a blend of historical trading multiples, past growth rates, and projections for future performance. In the case of OC, which has had periods of unprofitability and cash-flow challenges, this valuation may not serve as a precise fair-value target but rather a directional indication of potential upside.
The GF Valuation label categorizes OC as "Modestly Undervalued," which suggests that there may be an opportunity for investors. However, caution is advised due to the company's cash-flow-negative status, making traditional earnings-based valuation metrics like Price-to-Earnings (P/E) less applicable. Instead, a focus on Price-to-Sales (P/S) analysis may be more illuminating in understanding OC’s valuation landscape.
How Does OC's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 11.0x (Forward) | 10.1x (5-Year Median) |
OC's forward P/E ratio of 11.0x is slightly above its 5-year median P/E of 10.1x, indicating that the stock is trading at a higher valuation compared to its historical averages. This uptick suggests a divergence from the GF Value™ assessment, which may highlight a market perception of future growth potential that contrasts with the company’s recent financial performance.
What Does OC's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite measure that evaluates a stock's performance across various dimensions, including financial strength, profitability, growth, valuation, and momentum. With a GF Scoreâ„¢ of 85/100, OC demonstrates strong performance, particularly in the momentum and valuation categories.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 85 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 7/10 |
| Valuation | 8/10 |
| Momentum | 10/10 |
OC’s strongest area is its momentum rank of 10/10, indicating robust recent performance. In contrast, the financial strength rank of 5/10 suggests room for improvement, particularly given the recent cash-flow challenges. The score reflects a mixed outlook; while profitability and valuation metrics are solid, the financial strength and growth scores indicate caution.
What Are Gurus and Insiders Doing with OC?
Currently, five gurus hold shares of Owens-Corning Inc, with one guru adding to their position and four trimming their holdings in recent quarters. This mixed activity among gurus suggests a cautious sentiment regarding the stock's future performance, emphasizing the importance of following such ownership trends.
On the insider front, the sale of $0.4 million in shares without any purchases over the past year may indicate a lack of confidence from insiders in the company’s short-term prospects. This selling trend could raise concerns for potential investors, highlighting the need to scrutinize the company's financial health closely.
What This Means for Investors
Overall, Owens-Corning Inc appears to be modestly undervalued based on the GF Valueâ„¢ assessment, although caution is warranted due to its cash-flow challenges and the mixed signals from guru and insider activities. Investors should be aware of the risks associated with earnings-based valuations in the context of a company that has faced profitability issues. For more details on Owens-Corning Inc, visit the Owens-Corning Inc OC stock page, and explore the insights available on the GF Valueâ„¢ page.
Frequently Asked Questions
What is OC's GF Scoreâ„¢?
The GF Scoreâ„¢ for Owens-Corning Inc is 85/100, indicating a strong overall performance in various aspects of its business.
Is OC overvalued or undervalued?
According to the GF Valueâ„¢, OC is currently undervalued, with a current price of $131.90 compared to a GF Value of $156.34.
What is OC's P/E ratio?
Owens-Corning Inc's forward P/E ratio is 11.0x, which is above its 5-year median of 10.1x, suggesting a higher valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
