Back to top

Image: Bigstock

ODP Corp. (ODP) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, ODP Corp. (ODP - Free Report) closed at $47.50, marking a +1.56% move from the previous day. This change outpaced the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.95%.

Prior to today's trading, shares of the office supply retailer had gained 26.34% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.59% and the S&P 500's gain of 4.41% in that time.

Investors will be hoping for strength from ODP as it approaches its next earnings release. On that day, ODP is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 32.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.34 billion, down 6.62% from the year-ago period.

Investors might also notice recent changes to analyst estimates for ODP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. ODP currently has a Zacks Rank of #3 (Hold).

Investors should also note ODP's current valuation metrics, including its Forward P/E ratio of 8.19. This valuation marks a discount compared to its industry's average Forward P/E of 14.09.

Investors should also note that ODP has a PEG ratio of 1.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Miscellaneous was holding an average PEG ratio of 1.99 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The ODP Corporation (ODP) - free report >>

Published in