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ODP Corp. (ODP) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, ODP Corp. (ODP - Free Report) closed at $31.48, marking a -1.25% move from the previous day. This change lagged the S&P 500's 0.16% gain on the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.78%.

Prior to today's trading, shares of the office supply retailer had gained 7.16% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.07% and the S&P 500's gain of 1.67% in that time.

Investors will be eagerly watching for the performance of ODP Corp. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2024. It is anticipated that the company will report an EPS of $1.49, marking a 20.74% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.83 billion, down 9.13% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.29 per share and a revenue of $7.13 billion, demonstrating changes of -23.39% and -8.96%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ODP Corp. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, ODP Corp. holds a Zacks Rank of #3 (Hold).

In terms of valuation, ODP Corp. is presently being traded at a Forward P/E ratio of 7.44. Its industry sports an average Forward P/E of 12.26, so one might conclude that ODP Corp. is trading at a discount comparatively.

Meanwhile, ODP's PEG ratio is currently 0.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Miscellaneous industry stood at 2.18 at the close of the market yesterday.

The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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