Owens Corning (OC): A Bull Case Theory

We came across a bullish thesis on Owens Corning (OC) on Twitter by Brian Coughlin. In this article, we will summarize the bulls’ thesis on OC. Owens Corning (OC)’s share was trading at $187.77 as of Jan 23rd. OC’s trailing and forward P/E were 15.94 and 11.57 respectively according to Yahoo Finance.

A construction site with workers wearing hard hats and safety vests, installing roofing materials.

Owens Corning (OC) is an industry leader in insulation, roofing, and fiberglass composite materials, offering a compelling investment opportunity at 9.6x EV/EBIT and 11.3x EV/FCF. The company appears undervalued, with strong risk/reward dynamics supported by its robust market position and favorable industry trends. OC’s business performance is closely tied to U.S. residential repair and remodeling (R&R) activity, housing starts, global commercial construction, and industrial production, all of which are experiencing steady growth. CEO Brian Chambers emphasizes that the company’s strategic initiatives and investments are enhancing growth, strengthening earnings power, and reshaping the organization for long-term success.

The U.S. R&R market remains resilient, with demand expected to grow at a CAGR of over 5% from 2025 to 2030, offering sustained tailwinds for OC. The increasingly severe and unpredictable nature of storms further amplifies the need for repair and remodeling, creating additional demand for OC’s products. With strong execution and a favorable macro backdrop, the company is well-positioned to capitalize on these trends. Its valuation disconnect from its underlying fundamentals makes OC an attractive entry point for investors seeking both growth and value, presenting significant upside potential with limited downside risk.

Owens Corning (OC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held OC at the end of the third quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of OC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.