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Overstock.com (OSTK) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Overstock.com (OSTK) closed at $10.66, marking a +1.62% move from the previous day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.

Coming into today, shares of the online discount retailer had gained 9.16% in the past month. In that same time, the Retail-Wholesale sector gained 2.33%, while the S&P 500 gained 2.66%.

OSTK will be looking to display strength as it nears its next earnings release. On that day, OSTK is projected to report earnings of -$0.70 per share, which would represent year-over-year growth of 54.84%. Our most recent consensus estimate is calling for quarterly revenue of $404.59 million, down 8.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.31 per share and revenue of $1.63 billion, which would represent changes of +46.7% and -10.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for OSTK. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. OSTK is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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