This story originally appeared on Zacks
In the latest trading session, Olin (OLN) closed at $48.82, marking a -1.87% move from the previous day. This change lagged the S&P 500’s daily loss of 0.16%.
Prior to today’s trading, shares of the chlor-alkali and ammunition producer’had gained 9.51% over the past month. This has outpaced the Basic Materials sector’s loss of 4.55% and the S&P 500’s gain of 0.46% in that time.
Wall Street will be looking for positivity from OLN as it approaches its next earnings report date. In that report, analysts expect OLN to post earnings of $2.01 per share. This would mark year-over-year growth of 1105%. Our most recent consensus estimate is calling for quarterly revenue of $2.29 billion, up 59.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.28 per share and revenue of $8.42 billion. These totals would mark changes of +639.26% and +46.22%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for OLN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.79% higher. OLN is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, OLN is holding a Forward P/E ratio of 6.83. For comparison, its industry has an average Forward P/E of 12.16, which means OLN is trading at a discount to the group.
Meanwhile, OLN’s PEG ratio is currently 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. The Chemical – Diversified industry currently had an average PEG ratio of 0.99 as of yesterday’s close.
The Chemical – Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.
To follow OLN in the coming trading sessions, be sure to utilize Zacks.com.
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