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In the latest trading session, Olin (OLN) closed at $47.48, marking a +0.53% move from the previous day. This change outpaced the S&P 500's 2.01% loss on the day. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the chlor-alkali and ammunition producer'had lost 29.32% over the past month, lagging the Basic Materials sector's loss of 15.03% and the S&P 500's loss of 6.08% 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 $2.58, up 49.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.53 billion, up 13.71% from the year-ago period.
OLN's full-year Zacks Consensus Estimates are calling for earnings of $10.06 per share and revenue of $9.82 billion. These results would represent year-over-year changes of +24.66% and +10.19%, respectively.
Investors should also note any recent changes to analyst estimates for Olin. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Olin is currently a Zacks Rank #3 (Hold).
Digging into valuation, Olin currently has a Forward P/E ratio of 4.69. For comparison, its industry has an average Forward P/E of 9.42, which means Olin is trading at a discount to the group.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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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