In the latest trading session, Office Depot (ODP - Free Report) closed at $1.89, marking a -0.53% move from the previous day. This change lagged the S&P 500's daily gain of 1%.
Coming into today, shares of the office supply retailer had gained 11.47% in the past month. In that same time, the Retail-Wholesale sector lost 2.76%, while the S&P 500 lost 1.22%.
Wall Street will be looking for positivity from ODP as it approaches its next earnings report date. The company is expected to report EPS of $0.14, up 7.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.83 billion, down 1.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $10.82 billion, which would represent changes of +5.71% and -1.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ODP. These revisions help to show the ever-changing nature of near-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 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 past month, the Zacks Consensus EPS estimate remained stagnant. ODP is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, ODP currently has a Forward P/E ratio of 5.19. This valuation marks a discount compared to its industry's average Forward P/E of 11.29.
Also, we should mention that ODP has a PEG ratio of 0.47. 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. ODP's industry had an average PEG ratio of 1.62 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.