ODP Corp. (ODP – Free Report) closed the latest trading day at $18.11, indicating a +0.22% change from the previous session’s end. The stock’s performance was ahead of the S&P 500’s daily loss of 1.71%. Meanwhile, the Dow experienced a drop of 1.7%, and the technology-dominated Nasdaq saw a decrease of 2.2%.
Coming into today, shares of the office supply retailer had lost 19.69% in the past month. In that same time, the Retail-Wholesale sector gained 4%, while the S&P 500 gained 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of ODP Corp. in its upcoming earnings disclosure. The company’s earnings report is set to go public on February 26, 2025. The company is forecasted to report an EPS of $0.80, showcasing a 13.04% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.59 billion, down 11.77% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ODP Corp. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, ODP Corp. possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, ODP Corp. is currently exchanging hands at a Forward P/E ratio of 4.15. This denotes a discount relative to the industry’s average Forward P/E of 15.58.
Also, we should mention that ODP has a PEG ratio of 0.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Retail – Miscellaneous industry held an average PEG ratio of 2.17.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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