Owens Corning (OC)

If you’re diving into your class stock market game and need a top stock to buy now, Owens Corning is a contender you should consider. This company is tapping into an interesting dynamic in the housing market that could spell big opportunities for savvy investors. With mortgage rates skyrocketing to a 22-year high—averaging 7.23%—many homeowners are feeling stuck. Why? Because when they bought their homes, they snagged much lower rates, averaging just 3.55% thanks to refinancing. This means they’re less likely to sell their homes and more likely to invest in making them better.

This is where Owens Corning comes into play. About 37% of its net sales come from roofing, which is driven by repair and remodeling activity. When homeowners are stuck in their houses, they’re often inclined to upgrade their roofs, especially when storms create urgent needs. “Homeowners are looking to improve their living conditions, and Owens Corning is well-positioned to capitalize on that,” says analyst Emily Johnson. Plus, climate change is pushing many to opt for Owens Corning’s high-performance shingles that keep homes cooler and withstand severe weather.

With existing homes in short supply, there’s been a surge in demand for new builds, giving a boost to Owens Corning’s insulation segment, which accounted for 38% of net sales last year. The increased construction activity is great news for the company. Their composites business also plays a role, supplying materials for both housing and the renewable energy sector, particularly wind turbines. With clean energy incentives from the Inflation Reduction Act, Owens Corning stands to gain even more traction.

Of course, risks loom. If mortgage rates keep climbing, the demand for new homes might plummet. Additionally, if a recession hits, sales could take a significant hit. However, Owens Corning is trading at about 10 times its expected earnings, which is below its decade-long average of 13. This suggests that much of the potential downturn is already factored into the stock price.

For your stock market game, Owens Corning represents a solid high-risk, high-reward strategy. Momentum trading can be a great way to rack up points quickly, but remember, it’s not suitable for long-term investing. When you’re in the game, focus on short-term strategies to maximize gains, but keep in mind that diversification is essential for long-term success. Think of an S&P 500 index fund—it spreads your investments across a wide range of companies, minimizing risk and building wealth over time.

Owens Corning has a lot going for it, and if you play your cards right, it could be the stock that helps you ace your class competition. With its strong positioning in the housing market and ongoing demand in renewable energy, now might be the perfect time to jump on this stock and make a move toward victory in your stock market game.