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ODP Corp. (ODP) Registers a Bigger Fall Than the Market: Important Facts to Note

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ODP Corp. (ODP - Free Report) ended the recent trading session at $18.78, demonstrating a -4.48% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq depreciated by 0.92%.

Prior to today's trading, shares of the office supply retailer had gained 10.64% outpaced the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22%.

Investors will be eagerly watching for the performance of ODP Corp. in its upcoming earnings disclosure. In that report, analysts expect ODP Corp. to post earnings of $0.33 per share. This would mark a year-over-year decline of 41.07%. Alongside, our most recent consensus estimate is anticipating revenue of $1.57 billion, indicating a 8.39% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.03 per share and revenue of $6.58 billion, indicating changes of -8.18% and -5.83%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for ODP Corp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. ODP Corp. is currently a Zacks Rank #1 (Strong Buy).

With respect to valuation, ODP Corp. is currently being traded at a Forward P/E ratio of 6.5. This represents a discount compared to its industry average Forward P/E of 14.35.

Also, we should mention that ODP has a PEG ratio of 0.46. 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. By the end of yesterday's trading, the Retail - Miscellaneous industry had an average PEG ratio of 2.9.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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