In the latest trading session, Olin (OLN) closed at $49.24, marking a -0.79% move from the previous day. This move lagged the S&P 500’s daily gain of 0.15%.
Heading into today, shares of the chlor-alkali and ammunition producer’had gained 3.68% over the past month, outpacing the Basic Materials sector’s loss of 3.98% and the S&P 500’s loss of 0.58% in that time.
Investors will be hoping for strength from OLN as it approaches its next earnings release, which is expected to be October 21, 2021. The company is expected to report EPS of $2.01, up 1105% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.29 billion, up 59.59% from the year-ago period.
OLN’s full-year Zacks Consensus Estimates are calling for earnings of $7.28 per share and revenue of $8.42 billion. These results would represent year-over-year changes of +639.26% and +46.22%, respectively.
It is also important to note the recent changes to analyst estimates for OLN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% higher. OLN is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, OLN is currently trading at a Forward P/E ratio of 6.82. This represents a discount compared to its industry’s average Forward P/E of 12.73.
It is also worth noting that OLN currently has a PEG ratio of 0.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Chemical – Diversified stocks are, on average, holding a PEG ratio of 1.02 based on yesterday’s closing prices.
The Chemical – Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Olin Corporation (OLN): Free Stock Analysis Report
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