27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Roofing company Owens Corning (NYSE:OC) is expected to discuss on its third-quarter conference call signs of an improving residential end market, according to Buckingham.
The Analyst
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Buckingham Research Group analyst Megan McGrath upgraded Owens Corning from Neutral to Buy with a price target lifted from $59 to $79.
The Thesis
McGrath said the case for turning bullish on Owens Corning's stock isn't based on exceptions for a strong third quarter, but rather due to longer-term trends. Specifically, the company's insulation business should show signs of momentum in Wednesday's earnings print but will improve in 2020 from a lack of curtailment expenses, better U.S. volumes and potential pricing stability. As such, the insulation business could show a 100 basis point year-over-year margin improvement next year.
The roofing market could benefit from improvements in asphalt pricing and easier top-line comps, the analyst wrote in the note. While it's too early to determine if the IMO 2020 regulation will be a catalyst for the roofing business, McGrath said there are signs of "early benefits," such as downside to asphalt prices.
Composites represents the company's most notable near-term concern, McGrath said, especially at a time when trends in Europe and manufacturing indicators are weakening. Expectations for weakness are built in to the research firm's model, which calls for 1% revenue growth in 2020 along with a 50 basis point improvement in margins next year.
Price Action
Shares of Owens Corning were trading higher by 0.28% Tuesday at $63.61. On Wednesday morning, the company is expected to report earnings of $1.50 per share on revenue of $1.85 billion.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.