Top Stock to Buy #4 — Owens Corning (OC)
Owens Corning (NYSE:OC) is a producer of glass fiber reinforcements and building materials, including roofing materials. The company predicted that roofing demand could reach the highest levels in 15 years, and wall-board shipments rose 4% in Q3, the first year-to-year increase since 2006. A 35% increase in wall-board prices will take effect this year, according to Fitch.
The results of an increase in home construction would directly benefit OC with a dramatic increase in earnings from the estimate of $2.30 in 2011.
Technically the stock has formed a “V” bottom and a break through the resistance band at $30 to $32 should result in a quick run to $36-$38. Longer term expect much higher prices that will track an economic recovery.