We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Office Depot (ODP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Office Depot (ODP - Free Report) closed at $1.68 in the latest trading session, marking a +0.3% move from the prior day. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 1.12%.
Prior to today's trading, shares of the office supply retailer had gained 30.86% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.54% and the S&P 500's loss of 1.07% in that time.
Investors will be hoping for strength from ODP as it approaches its next earnings release. On that day, ODP is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $2.83 billion, down 1.97% from the year-ago period.
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.
Any recent changes to analyst estimates for ODP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ODP is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note ODP's current valuation metrics, including its Forward P/E ratio of 4.59. This represents a discount compared to its industry's average Forward P/E of 11.05.
Investors should also note that ODP has a PEG ratio of 0.41 right now. 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. 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 68, putting it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Office Depot (ODP) Gains But Lags Market: What You Should Know
Office Depot (ODP - Free Report) closed at $1.68 in the latest trading session, marking a +0.3% move from the prior day. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 1.12%.
Prior to today's trading, shares of the office supply retailer had gained 30.86% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.54% and the S&P 500's loss of 1.07% in that time.
Investors will be hoping for strength from ODP as it approaches its next earnings release. On that day, ODP is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 7.69%. Our most recent consensus estimate is calling for quarterly revenue of $2.83 billion, down 1.97% from the year-ago period.
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.
Any recent changes to analyst estimates for ODP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ODP is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note ODP's current valuation metrics, including its Forward P/E ratio of 4.59. This represents a discount compared to its industry's average Forward P/E of 11.05.
Investors should also note that ODP has a PEG ratio of 0.41 right now. 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. 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 68, putting it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.