Olin (OLN) closed at $49.21 in the latest trading session, marking a +1.13% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.75%.
Coming into today, shares of the chlor-alkali and ammunition producer’had lost 0.33% in the past month. In that same time, the Basic Materials sector gained 1%, while the S&P 500 lost 0.05%.
Investors will be hoping for strength from OLN as it approaches its next earnings release, which is expected to be October 21, 2021. In that report, analysts expect OLN to post earnings of $2.07 per share. This would mark year-over-year growth of 1135%. Meanwhile, our latest consensus estimate is calling for revenue of $2.38 billion, up 65.55% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.59 per share and revenue of $8.55 billion, which would represent changes of +662.22% and +48.52%, respectively, from the prior year.
Any recent changes to analyst estimates for OLN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.11% higher within the past month. OLN is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, OLN is currently trading at a Forward P/E ratio of 6.42. Its industry sports an average Forward P/E of 12.7, so we one might conclude that OLN is trading at a discount comparatively.
Also, we should mention that OLN has a PEG ratio of 0.12. 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 1.16 as of yesterday’s close.
The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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