ODP Corp. (ODP – Free Report) closed the most recent trading day at $22.35, making no change from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Heading into today, shares of the office supply retailer had lost 21% over the past month, lagging the Retail-Wholesale sector’s loss of 4.61% and the S&P 500’s loss of 2.7% in that time.
Market participants will be closely following the financial results of ODP Corp. in its upcoming release. In that report, analysts expect ODP Corp. to post earnings of $0.80 per share. This would mark a year-over-year decline of 13.04%. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 11.77% drop compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ODP Corp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, ODP Corp. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, ODP Corp. is currently trading at a Forward P/E ratio of 5.13. For comparison, its industry has an average Forward P/E of 11.65, which means ODP Corp. is trading at a discount to the group.
It’s also important to note that ODP currently trades at a PEG ratio of 0.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. ODP’s industry had an average PEG ratio of 1.18 as of yesterday’s close.
The Retail – Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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