Yahoo Finance Why ODP Corp. (ODP) Outpaced the Stock Market Today
The latest trading session saw ODP Corp. (ODP) ending at $39.28, denoting a +0.56% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.49%.
Shares of the office supply retailer have depreciated by 0.46% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.04% and the S&P 500's gain of 3.22%.
The investment community will be paying close attention to the earnings performance of ODP Corp. in its upcoming release. On that day, ODP Corp. is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 14.14%. In the meantime, our current consensus estimate forecasts the revenue to be $1.77 billion, indicating a 7.47% decline compared to the corresponding quarter of the prior year.
ODP's full-year Zacks Consensus Estimates are calling for earnings of $6.40 per share and revenue of $7.45 billion. These results would represent year-over-year changes of +14.29% and -4.89%, respectively.
It is also important to note the recent changes to analyst estimates for ODP Corp. These recent revisions tend to reflect the evolving nature of short-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been no change in the Zacks Consensus EPS estimate. ODP Corp. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, ODP Corp. is presently trading at a Forward P/E ratio of 6.1. For comparison, its industry has an average Forward P/E of 12.61, which means ODP Corp. is trading at a discount to the group.
Investors should also note that ODP has a PEG ratio of 0.44 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Miscellaneous industry held an average PEG ratio of 1.69.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 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.
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
