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

Zacks Equity Research

Overstock.com (OSTK) closed the most recent trading day at $10.67, moving -1.66% from the previous trading session. This change lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.

Heading into today, shares of the online discount retailer had lost 59.39% over the past month, lagging the Retail-Wholesale sector's loss of 3.08% and the S&P 500's loss of 1.17% in that time.

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. Our most recent consensus estimate is calling for quarterly revenue of $404.59 million, down 8.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.31 per share and revenue of $1.63 billion. These totals would mark changes of +46.7% and -10.69%, respectively, from last year.

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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. OSTK is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.

To follow OSTK in the coming trading sessions, be sure to utilize Zacks.com.


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