Why ODP Corp. (ODP) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
ODP Corp. (ODP)
The ODP Corporation is one of the leading providers of business services, products and digital workplace technology solutions through an integrated B2B distribution platform. The ODP Corporation replaces Office Depot, Inc. as the public company trading on Nasdaq under the ticker symbol — ODP.
ODP boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of ODP Corp. are trading at a forward earnings multiple of 9.2X, as well as a PEG Ratio of 0.7, a Price/Cash Flow ratio of 6X, and a Price/Sales ratio of 0.3X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.30 to $5.93 per share. ODP has an average earnings surprise of 23.5%.
ODP should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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The ODP Corporation (ODP) : Free Stock Analysis Report
