In the latest trading session, Olin (OLN) closed at $52.56, marking a +1.86% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.17%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.31%.
Prior to today’s trading, shares of the chlor-alkali and ammunition producer’had gained 3.01% over the past month. This has lagged the Basic Materials sector’s gain of 6.54% and outpaced the S&P 500’s gain of 0.88% in that time.
Investors will be hoping for strength from Olin as it approaches its next earnings release. On that day, Olin is projected to report earnings of $2.33 per share, which would represent year-over-year growth of 52.29%. Our most recent consensus estimate is calling for quarterly revenue of $2.37 billion, up 23.3% from the year-ago period.
OLN’s full-year Zacks Consensus Estimates are calling for earnings of $9.05 per share and revenue of $9.56 billion. These results would represent year-over-year changes of +12.14% and +7.32%, respectively.
Investors should also note any recent changes to analyst estimates for Olin. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% lower. Olin is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Olin is holding a Forward P/E ratio of 5.7. This represents a discount compared to its industry’s average Forward P/E of 12.45.
The Chemical – Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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