Olin (OLN) Stock Moves -0.8%: What You Should Know

Olin (OLN Free Report) closed at $52.08 in the latest trading session, marking a -0.8% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.85%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the chlor-alkali and ammunition producer’had lost 13.89% over the past month, lagging the Basic Materials sector’s loss of 1.7% and the S&P 500’s loss of 0.97% in that time.

Olin will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.43, up 2125% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.34 billion, up 41.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.64 per share and revenue of $8.84 billion, which would represent changes of +740% and +53.45%, respectively, from the prior year.

Any recent changes to analyst estimates for Olin should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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.

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 remained stagnant within the past month. Olin is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Olin is holding a Forward P/E ratio of 6.08. This represents a discount compared to its industry’s average Forward P/E of 11.74.

Investors should also note that OLN has a PEG ratio of 0.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Chemical – Diversified stocks are, on average, holding a PEG ratio of 1.11 based on yesterday’s closing prices.

The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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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