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ODP Corp. (ODP) Dips More Than Broader Market: What You Should Know

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In the latest market close, ODP Corp. (ODP - Free Report) reached $41.23, with a -1.13% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.7%.

Coming into today, shares of the office supply retailer had gained 5.36% in the past month. In that same time, the Retail-Wholesale sector gained 1.58%, while the S&P 500 gained 2.14%.

The investment community will be paying close attention to the earnings performance of ODP Corp. in its upcoming release. It is anticipated that the company will report an EPS of $1.13, marking a 14.14% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.73 billion, reflecting a 9.28% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $7.4 billion, which would represent changes of +14.29% and -5.55%, respectively, from the prior year.

Any recent changes to analyst estimates for ODP Corp. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ODP Corp. is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ODP Corp.'s current valuation metrics, including its Forward P/E ratio of 6.52. This indicates a discount in contrast to its industry's Forward P/E of 13.45.

We can additionally observe that ODP currently boasts 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. As the market closed yesterday, the Retail - Miscellaneous industry was having an average PEG ratio of 1.85.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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