Why Owens Corning (OC) is Soaring

NEW YORK (TheStreet) -- Owens Corning (OC) is soaring following better-than-expected quarterly results thanks to a recovering U.S. housing market.

By midday, shares had added 10.2% to $43.78.

In the three months to December, the construction supplies company earned 44 cents a share on revenue 10.3% higher year-over-year to $1.28 billion.

Analysts surveyed by Thomson Reuters had expected per-share earnings of 27 cents a share on $1.2 billion in sales.

CEO Mike Thaman said in a statement that the Toledo, Ohio-based company benefited from "a stable and growing global economy and a recovering U.S. housing market."

Full-year net income of $1.86 a share came in 20 cents above consensus. Revenue increased 2% since 2012 to $5.3 billion.

"We expect similar growth in 2014 and we are working to maintain the momentum we established last year," Thaman added.

Its roofing and insulation segments are expected to drive growth on U.S. residential new construction and improved pricing.

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TheStreet Ratings team rates OWENS CORNING as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate OWENS CORNING (OC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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