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Olin (OLN) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·2-min read

Olin (OLN) closed at $55.47 in the latest trading session, marking a +1.19% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Coming into today, shares of the chlor-alkali and ammunition producer'had lost 1.54% in the past month. In that same time, the Basic Materials sector gained 7.48%, while the S&P 500 gained 0.22%.

Wall Street will be looking for positivity from Olin as it approaches its next earnings report date. This is expected to be January 27, 2022. The company is expected to report EPS of $2.53, up 2208.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 41.33% from the prior-year quarter.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.64% higher. Olin is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Olin is currently trading at a Forward P/E ratio of 6.02. For comparison, its industry has an average Forward P/E of 13.17, 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 101, putting it in the top 40% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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