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Are Investors Undervaluing Office Depot (ODP) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Office Depot (ODP - Free Report) . ODP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.04 right now. For comparison, its industry sports an average P/E of 14.80. ODP's Forward P/E has been as high as 9.47 and as low as 4.42, with a median of 7.26, all within the past year.
Investors should also note that ODP holds a PEG ratio of 0.52. 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 1.10. Over the past 52 weeks, ODP's PEG has been as high as 1.17 and as low as 0.29, with a median of 0.51.
Finally, we should also recognize that ODP has a P/CF ratio of 6.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ODP's P/CF compares to its industry's average P/CF of 21.83. Over the past year, ODP's P/CF has been as high as 6.57 and as low as 3.09, with a median of 4.76.
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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Are Investors Undervaluing Office Depot (ODP) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Office Depot (ODP - Free Report) . ODP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.04 right now. For comparison, its industry sports an average P/E of 14.80. ODP's Forward P/E has been as high as 9.47 and as low as 4.42, with a median of 7.26, all within the past year.
Investors should also note that ODP holds a PEG ratio of 0.52. 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 1.10. Over the past 52 weeks, ODP's PEG has been as high as 1.17 and as low as 0.29, with a median of 0.51.
Finally, we should also recognize that ODP has a P/CF ratio of 6.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ODP's P/CF compares to its industry's average P/CF of 21.83. Over the past year, ODP's P/CF has been as high as 6.57 and as low as 3.09, with a median of 4.76.
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.