In the latest close session, ODP Corp. (ODP) was down 4.53% at $17.29. The stock's change was less than the S&P 500's daily loss of 1.13%. Meanwhile, the Dow experienced a drop of 1.79%, and the technology-dominated Nasdaq saw a decrease of 1.3%.
The office supply retailer's shares have seen an increase of 0.67% over the last month, surpassing the Retail-Wholesale sector's loss of 1.63% and falling behind the S&P 500's gain of 3.55%.
The upcoming earnings release of ODP Corp. will be of great interest to investors. On that day, ODP Corp. is projected to report earnings of $0.33 per share, which would represent 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $6.58 billion. These totals would mark changes of -8.18% and -5.83%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ODP Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ODP Corp. presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, ODP Corp. is presently trading at a Forward P/E ratio of 5.99. For comparison, its industry has an average Forward P/E of 13.17, which means ODP Corp. is trading at a discount to the group.
Meanwhile, ODP's PEG ratio is currently 0.43. 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 2.63 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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