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

Zacks Equity Research

In the latest trading session, Overstock.com (OSTK) closed at $10.22, marking a -1.35% move from the previous day. This move lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 1.4%.

Heading into today, shares of the online discount retailer had lost 35.81% over the past month, lagging the Retail-Wholesale sector's loss of 1.25% and the S&P 500's gain of 0.38% in that time.

Wall Street will be looking for positivity from OSTK as it approaches its next earnings report date. On that day, OSTK is projected to report earnings of -$0.70 per share, which would represent year-over-year growth of 54.84%. Meanwhile, our latest consensus estimate is calling for revenue of $404.59 million, down 8.17% from the prior-year quarter.

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.

Any recent changes to analyst estimates for OSTK should also be noted by investors. 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.

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. 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 group has a Zacks Industry Rank of 69, putting it in the top 28% 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.


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