In the latest trading session, ODP Corp. (ODP) closed at $20.88, marking a -4.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.72%.
Coming into today, shares of the office supply retailer had gained 8.72% in the past month. In that same time, the Retail-Wholesale sector gained 2.3%, while the S&P 500 gained 2.99%.
Market participants will be closely following the financial results of ODP Corp. in its upcoming release. The company is forecasted to report an EPS of $0.82, showcasing a 15.49% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, down 6.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $6.53 billion, which would represent changes of -12.73% and -6.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ODP Corp. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ODP Corp. presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ODP Corp. has a Forward P/E ratio of 7.58 right now. This denotes a discount relative to the industry average Forward P/E of 18.43.
It is also worth noting that ODP currently has a PEG ratio of 0.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Miscellaneous industry had an average PEG ratio of 2.63.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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