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ODP Corp. (ODP) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, ODP Corp. (ODP - Free Report) was down 2.68% at $20.73. The stock's change was less than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq added 0.45%.

The office supply retailer's stock has climbed by 2.5% in the past month, falling short of the Retail-Wholesale sector's gain of 4.45% and the S&P 500's gain of 3.44%.

Market participants will be closely following the financial results of ODP Corp. in its upcoming release. The company's upcoming EPS is projected at $0.82, signifying a 15.49% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.67 billion, indicating a 6.21% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.88 per share and a revenue of $6.53 billion, representing changes of -12.73% and -6.54%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ODP Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ODP Corp. is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note ODP Corp.'s current valuation metrics, including its Forward P/E ratio of 7.4. This signifies a discount in comparison to the average Forward P/E of 18.52 for its industry.

Meanwhile, ODP's PEG ratio is currently 0.53. 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 2.52 at yesterday's closing price.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 38, this industry ranks in the top 16% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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