ODP Corp. (ODP) ended the recent trading session at $18.16, demonstrating a -2.21% change from the preceding day's closing price. This change lagged the S&P 500's 0.33% loss on the day. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.22%.
The stock of office supply retailer has risen by 2.54% in the past month, leading the Retail-Wholesale sector's gain of 0.67% and undershooting the S&P 500's gain of 4.07%.
The upcoming earnings release of ODP Corp. will be of great interest to investors. In that report, analysts expect ODP Corp. to post earnings of $0.33 per share. This would mark a year-over-year decline of 41.07%. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, down 8.39% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $6.58 billion, representing changes of -8.18% and -5.83%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for ODP Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ODP Corp. is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ODP Corp. is holding a Forward P/E ratio of 6.14. This indicates a discount in contrast to its industry's Forward P/E of 14.54.
One should further note that ODP currently holds a PEG ratio of 0.44. 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 the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 2.89.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The ODP Corporation (ODP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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