In the latest trading session, Office Depot (ODP) closed at $2.08, marking no change from the previous day. This change lagged the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the office supply retailer had gained 21.64% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.33% and the S&P 500's gain of 2.66% in that time.
ODP will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2019. The company is expected to report EPS of $0.14, up 7.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.83 billion, down 1.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $10.82 billion, which would represent changes of +5.71% and -1.78%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ODP. These revisions help to show the ever-changing nature 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ODP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ODP is currently trading at a Forward P/E ratio of 5.7. For comparison, its industry has an average Forward P/E of 11.72, which means ODP is trading at a discount to the group.
Meanwhile, ODP's PEG ratio is currently 0.51. 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. Retail - Miscellaneous stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow ODP in the coming trading sessions, be sure to utilize Zacks.com.
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Office Depot, Inc. (ODP) : Free Stock Analysis Report
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