ODP Corp. (ODP) closed the most recent trading day at $13.55, moving +1.35% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.
The office supply retailer's stock has dropped by 6.7% in the past month, falling short of the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84%.
The investment community will be closely monitoring the performance of ODP Corp. in its forthcoming earnings report. The company is scheduled to release its earnings on May 7, 2025. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 38.1% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.65 billion, down 11.86% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.56 per share and a revenue of $6.57 billion, indicating changes of -22.42% and -5.99%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for ODP Corp. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ODP Corp. is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, ODP Corp. is currently trading at a Forward P/E ratio of 5.23. This valuation marks a discount compared to its industry's average Forward P/E of 13.72.
Meanwhile, ODP's PEG ratio is currently 0.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The ODP Corporation (ODP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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