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In the latest trading session, ODP Corp. (ODP) closed at $22.12, marking a +0.55% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.26%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.
Shares of the office supply retailer witnessed a loss of 15.42% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.93% and the S&P 500's loss of 2.82%.
Market participants will be closely following the financial results of ODP Corp. in its upcoming release. The company is expected to report EPS of $0.80, down 13.04% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.59 billion, reflecting a 11.77% fall from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for ODP Corp. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, ODP Corp. boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, ODP Corp. is presently trading at a Forward P/E ratio of 5.05. This expresses a discount compared to the average Forward P/E of 12.03 of its industry.
We can additionally observe that ODP currently boasts a PEG ratio of 0.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ODP's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Miscellaneous industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.