Office Depot (ODP - Free Report) closed at $1.68 in the latest trading session, marking a +0.3% move from the prior day. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 1.12%.
Prior to today's trading, shares of the office supply retailer had gained 30.86% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.54% and the S&P 500's loss of 1.07% 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 $0.14 per share, which would represent year-over-year growth of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $2.83 billion, down 1.97% from the year-ago period.
ODP's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $10.82 billion. These results would represent year-over-year changes of +5.71% and -1.78%, respectively.
Any recent changes to analyst estimates for ODP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ODP is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note ODP's current valuation metrics, including its Forward P/E ratio of 4.59. This represents a discount compared to its industry's average Forward P/E of 11.05.
Investors should also note that ODP has a PEG ratio of 0.41 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Miscellaneous industry currently had an average PEG ratio of 1.46 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.