Office Depot (ODP - Free Report) closed the most recent trading day at $1.75, making no change from the previous trading session. This move lagged the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 1.02%.
Heading into today, shares of the office supply retailer had gained 4.17% over the past month, outpacing the Retail-Wholesale sector's loss of 4.73% and the S&P 500's loss of 2.74% in that time.
Investors will be hoping for strength from ODP as it approaches its next earnings release. In that report, analysts expect ODP to post earnings of $0.14 per share. This would mark year-over-year growth of 7.69%. Meanwhile, our latest consensus estimate is calling for revenue of $2.83 billion, down 1.97% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for ODP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ODP is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ODP has a Forward P/E ratio of 4.79 right now. This represents a discount compared to its industry's average Forward P/E of 11.35.
Meanwhile, ODP's PEG ratio is currently 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company'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 110, putting it in the top 44% 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.