OC - 3 Mystifyingly Cheap Stocks
By conventional valuation measure shares in roofing, insulation, and composite materials manufacturer Owens Corning (NYSE: OC), axle and drivetrain technology company Dana (NYSE: DAN) and automation and power transmission technology company Altra Industrial (NASDAQ: AIMC) are cheap stocks. Although all three face headwinds in 2020, their valuations appear to have Armageddon scenarios built in, and merely avoiding worst-case outcomes could lead to strong price rises. Let's take a closer look at all three.
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It hasn't been a perfect year for the company. Slowing industrial production growth negatively affected its composites segment and lower volumes and production curtailments in the North American residential fiberglass market led to lower profits at insulation. Meanwhile, management expects U.S. industry shingle shipments to be flat in 2019. On the bright side, Owens Corning's roofing sales are expected to rise due to taking market share -- partly down to more favorable geographic exposure.