Here's How Much You'd Have If You Invested $1000 in Owens Corning a Decade Ago

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

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 — Roofing, Insulation and Composites.

Roofing segment (accounting for 41.6% of total 2023 sales) 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.

Insulation segment (37.9%) 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.

Composites segment (23.6%) 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.

[Note: For 2023, corporate eliminations constituted 3.1% of net sales]

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Owens Corning ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in May 2014 would be worth $4,339.55, or a 333.96% gain, as of May 27, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 179.12% and gold's return of 77.20% over the same time frame.

Analysts are forecasting more upside for OC too.

Owens Corning’s first-quarter 2024 earnings and net sales topped the Zacks Consensus Estimate by 18.1% and 1.8%, respectively. The bottom line grew year over year thanks to favorable delivery, lower input and manufacturing costs and higher selling prices. The company’s Roofing segment is also driving to the uptrend on the back of carryover prices and favorable mix and increased volumes. Moreover, its focus on new product and process innovation along with inorganic moves bode well. Shares of Owens Corning have outperformed its industry in the year-to-date period. Although soft contributions from the Insulation and Composites segments along with cost volatility are concerning, earnings estimates for 2024 have increased in the past seven days. This depicts analysts’ optimism about the stock’s growth potential.

Over the past four weeks, shares have rallied 7.63%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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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.

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