In the latest trading session, ODP Corp. (ODP) closed at $24.36, marking a -1.81% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.89%.
Prior to today's trading, shares of the office supply retailer had lost 4.72% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56% in that time.
Market participants will be closely following the financial results of ODP Corp. in its upcoming release. On that day, ODP Corp. is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 13.04%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, down 11.77% from the year-ago period.
Investors should also pay attention to any latest changes in 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 company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Right now, ODP Corp. possesses a Zacks Rank of #3 (Hold).
With respect to valuation, ODP Corp. is currently being traded at a Forward P/E ratio of 5.7. This expresses a discount compared to the average Forward P/E of 12.35 of its industry.
Meanwhile, ODP's PEG ratio is currently 0.41. 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. As the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 1.22.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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