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Is Office Depot (ODP) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Office Depot (ODP - Free Report) . ODP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.26. This compares to its industry's average Forward P/E of 13.53. Over the last 12 months, ODP's Forward P/E has been as high as 9.47 and as low as 4.42, with a median of 7.26.
Investors should also note that ODP holds a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ODP's industry currently sports an average PEG of 1. Over the last 12 months, ODP's PEG has been as high as 1.17 and as low as 0.29, with a median of 0.52.
Finally, our model also underscores that ODP has a P/CF ratio of 5.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.73. Over the past year, ODP's P/CF has been as high as 6.52 and as low as 3.10, with a median of 4.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Office Depot is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ODP feels like a great value stock at the moment.
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Is Office Depot (ODP) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Office Depot (ODP - Free Report) . ODP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.26. This compares to its industry's average Forward P/E of 13.53. Over the last 12 months, ODP's Forward P/E has been as high as 9.47 and as low as 4.42, with a median of 7.26.
Investors should also note that ODP holds a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ODP's industry currently sports an average PEG of 1. Over the last 12 months, ODP's PEG has been as high as 1.17 and as low as 0.29, with a median of 0.52.
Finally, our model also underscores that ODP has a P/CF ratio of 5.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.73. Over the past year, ODP's P/CF has been as high as 6.52 and as low as 3.10, with a median of 4.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Office Depot is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ODP feels like a great value stock at the moment.