The ODP Corporation (ODP) is Attracting Investor Attention: Here is What You Should Know

Core Insights - ODP Corp. has experienced a stock return of -1.4% over the past month, underperforming the Zacks S&P 500 composite's +3.6% and the Zacks Retail - Miscellaneous industry's -0.2% [1] Earnings Estimates - The expected earnings for ODP Corp. for the current quarter is $1.04 per share, reflecting a year-over-year increase of +5.1% [2] - The consensus earnings estimate for the current fiscal year stands at $6.03, indicating a year-over-year change of +7.7% [3] - For the next fiscal year, the consensus estimate is $7.81, representing a significant increase of +29.6% compared to the previous year [3] Revenue Estimates - The consensus sales estimate for the current quarter is $1.77 billion, showing a year-over-year decline of -7.5% [6] - For the current fiscal year, the revenue estimate is $7.45 billion, indicating a decrease of -4.9%, while the next fiscal year's estimate is $7.53 billion, reflecting a slight increase of +1.1% [6] Recent Performance - In the last reported quarter, ODP Corp. generated revenues of $1.87 billion, a decrease of -11.2% year-over-year, and an EPS of $1.05, down from $1.78 a year ago [7] - The company reported a revenue surprise of -3.88% compared to the Zacks Consensus Estimate and an EPS surprise of -35.98% [7] - Over the last four quarters, ODP Corp. has surpassed consensus EPS estimates three times but has not beaten revenue estimates in any of those quarters [7] Valuation - ODP Corp. is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [10] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [8][9] Conclusion - The Zacks Rank 2 suggests that ODP Corp. may outperform the broader market in the near term, despite recent challenges [11]