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Overstock.com (OSTK) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Overstock.com (OSTK) closed at $10.03, marking a -1.86% move from the previous day. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.02%.

Coming into today, shares of the online discount retailer had lost 8.91% in the past month. In that same time, the Retail-Wholesale sector gained 2.92%, while the S&P 500 gained 4.42%.

OSTK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.70, up 54.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $404.59 million, down 8.17% from the prior-year quarter.

OSTK's full-year Zacks Consensus Estimates are calling for earnings of -$3.31 per share and revenue of $1.63 billion. These results would represent year-over-year changes of +46.7% and -10.69%, respectively.

It is also important to note the recent changes to analyst estimates for OSTK. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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. OSTK currently has a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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