Office Depot (ODP) closed the most recent trading day at $3.15, moving -0.94% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 1.49%, and the Nasdaq, a tech-heavy index, added 1.46%.
Coming into today, shares of the office supply retailer had gained 7.8% in the past month. In that same time, the Retail-Wholesale sector gained 2.37%, while the S&P 500 gained 4.57%.
ODP will be looking to display strength as it nears its next earnings release. In that report, analysts expect ODP to post earnings of $0.08 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $2.68 billion, up 3.99% from the prior-year quarter.
Any recent changes to analyst estimates for ODP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ODP currently has a Zacks Rank of #2 (Buy).
Investors should also note ODP's current valuation metrics, including its Forward P/E ratio of 7.88. Its industry sports an average Forward P/E of 9.63, so we one might conclude that ODP is trading at a discount comparatively.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
Office Depot, Inc. (ODP): Free Stock Analysis Report
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