Yahoo Finance Why ODP Corp. (ODP) Dipped More Than Broader Market Today
The most recent trading session ended with ODP Corp. (ODP) standing at $39.27, reflecting a -0.71% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.71%.
Heading into today, shares of the office supply retailer had gained 3.29% over the past month, outpacing the Retail-Wholesale sector's gain of 2.65% and lagging the S&P 500's gain of 3.53% in that time.
The upcoming earnings release of ODP Corp. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.13, reflecting a 14.14% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.77 billion, down 7.47% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.40 per share and revenue of $7.45 billion. These totals would mark changes of +14.29% and -4.89%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for ODP Corp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ODP Corp. is currently a Zacks Rank #1 (Strong Buy).
Investors should also note ODP Corp.'s current valuation metrics, including its Forward P/E ratio of 6.18. This denotes a discount relative to the industry's average Forward P/E of 12.39.
Investors should also note that ODP has a PEG ratio of 0.44 right now. 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 1.68 as trading concluded yesterday.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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The ODP Corporation (ODP): Free Stock Analysis Report
