Should You Consider Adding Owens Corning (OC) to Your Portfolio?

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Owens Corning (NYSE:OC). Owens Corning (NYSE:OC) is a residential and commercial building products manufacturer. The one-month return of Owens Corning (NYSE:OC) was 8.84%, and its shares lost 20.52% of their value over the last 52 weeks. On July 14, 2025, Owens Corning (NYSE:OC) stock closed at $144.33 per share, with a market capitalization of $12.275 billion.

Oakmark Equity and Income Fund stated the following regarding Owens Corning (NYSE:OC) in its second quarter 2025 investor letter:

“Owens Corning (NYSE:OC) is one of the world’s largest building products companies, specializing in roofing, insulation, and doors. We like that Owens Corning has a dominant market position in roofing that has historically benefited from attractive pricing, scale advantages, the nondiscretionary nature of the product, and contractor loyalty. In our view, market participants underappreciate the quality of the roofing segment and are overly concerned with the insulation segment’s exposure to new housing starts. Economic uncertainty and cyclical forces have weighed on sentiment for the industry, presenting the opportunity to invest in a quality business with a management team that is taking advantage of their underpriced stock through share buybacks.”

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A crane carrying heavy building materials, representing the robust civil engineering products of the company.

Owens Corning (NYSE:OC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Owens Corning (NYSE:OC) at the end of the first quarter, which was 48 in the previous quarter. Owens Corning (NYSE:OC) reported revenue of $2.5 billion in the first quarter of 2025, marking an increase of 25% from Q1 2024. While we acknowledge the risk and potential of OC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Owens Corning (NYSE:OC) and shared the list of most undervalued industrial stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.