For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Owens Corning (OC) ten years ago? It may not have been easy to hold on to OC for all that time, but if you did, how much would your investment be worth today?
Owens Corning's Business In-Depth
With that in mind, let's take a look at Owens Corning's main business drivers.
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.
The company has three reportable segments — Composites, Insulation and Roofing.
Composites segment (accounting for 27.3% of total 2022 sales) includes vertically integrated downstream activities and specializes in the production of glass fiber reinforcement materials. Demand for composites is driven by general global economic activity and by the increasing replacement of traditional materials such as aluminum, wood and steel with composites that offer lighter weight, improved strength, lack of conductivity and corrosion resistance.
Insulation segment (38%) products include thermal and acoustical batts, loose-fill insulation, foam sheathing and accessories, glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation as well as foam insulation. Demand for Owens Corning’s insulating products is driven by new residential construction, remodeling and repair activity, commercial and industrial construction activity, increasingly stringent building codes and the growing need for energy efficiency.
Roofing segment (37.5%) products include laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials and oxidized asphalt. Demand for products in the Roofing segment is generally driven by residential repair and remodeling activity and by new residential construction. Roofing damage from major storms can significantly increase demand in the segment.
[Note: For 2022, corporate eliminations constituted 2.8% of net sales]
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Owens Corning a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2013 would be worth $3,278.26, or a 227.83% gain, as of July 11, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 166.82% and the price of gold went up 48.07% over the same time frame.
Going forward, analysts are expecting more upside for OC.
Shares of Owens Corning have outperformed its industry in the year-to-date period. The company is benefiting from high contributions from the Insulation and Roofing segments thanks to improved selling pricing. The Natural Polymers acquisition also added to the growth of the North American Residential insulation business. Introduction of 11 new or refreshed products, spanning core platforms in its roofing, insulation and composites businesses, is commendable. Although high costs and currency risks are pressuring the bottom line, earnings estimates for 2023 have been trending north over the past 30 days. This depicts analysts’ optimism over the stock’s growth potential.
The stock has jumped 7.17% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.4 Oil Stocks with Massive Upsides
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
