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ODP Corp. (ODP) Rises Higher Than Market: Key Facts

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In the latest trading session, ODP Corp. (ODP - Free Report) closed at $17.10, marking a +2.46% move from the previous day. This move outpaced the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.

Shares of the office supply retailer witnessed a gain of 4.64% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.02%, and the S&P 500's gain of 0.5%.

The upcoming earnings release of ODP Corp. will be of great interest to investors. The company is predicted to post an EPS of $0.33, indicating a 41.07% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.57 billion, indicating a 8.39% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $6.58 billion, representing changes of -8.18% and -5.83%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for ODP Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ODP Corp. is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that ODP Corp. has a Forward P/E ratio of 5.52 right now. This valuation marks a discount compared to its industry average Forward P/E of 13.17.

We can additionally observe that ODP currently boasts a PEG ratio of 0.39. 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 2.47 as trading concluded yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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