Owens Corning Incorporated (OC): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Owens Corning Incorporated ( OC) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Owens Corning Incorporated fell $1.30 (-4%) to $30.96 on average volume. Throughout the day, 2.6 million shares of Owens Corning Incorporated exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $30.86-$32.76 after having opened the day at $32.76 as compared to the previous trading day's close of $32.26. Other companies within the Industrial Goods sector that declined today were: Spirit AeroSystems Holdings ( SPR), down 30.2%, China Valves Technology ( CVVT), down 9.3%, Wowjoint Holdings ( BWOW), down 9.1%, and Meritage Homes Corporation ( MTH), down 8.2%.
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Owens Corning engages in the provision of composite and building materials systems worldwide. It operates in two segments, Composites and Building Materials. Owens Corning Incorporated has a market cap of $3.83 billion and is part of the materials & construction industry. The company has a P/E ratio of 23.8, equal to the average materials & construction industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Owens Corning Incorporated a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Owens Corning Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, A123 Systems ( AONE), up 23.1%, Proto Labs ( PRLB), up 20.1%, GrafTech International ( GTI), up 14.6%, and Gardner Denver ( GDI), up 11.5%, were all gainers within the industrial goods sector with Parker Hannifin Corporation ( PH) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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