In the latest close session, ODP Corp. (ODP) was up +1.87% at $18.25. The stock's performance was ahead of the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%.
Shares of the office supply retailer witnessed a gain of 8.12% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.05%, and the S&P 500's gain of 4.2%.
Analysts and investors alike will be keeping a close eye on the performance of ODP Corp. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.33, showcasing a 41.07% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.57 billion, showing a 8.39% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $6.58 billion, which would represent changes of -8.18% and -5.83%, respectively, from the prior year.
Any recent changes to analyst estimates for ODP Corp. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, ODP Corp. possesses a Zacks Rank of #3 (Hold).
In the context of valuation, ODP Corp. is at present trading with a Forward P/E ratio of 5.92. This represents a discount compared to its industry average Forward P/E of 13.54.
It's also important to note that ODP currently trades at a PEG ratio of 0.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Miscellaneous industry had an average PEG ratio of 2.88 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 26% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ODP in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The ODP Corporation (ODP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
