ODP vs. TSCO: Which Stock Is the Better Value Option?

Core Viewpoint - ODP Corp. is currently positioned as a more attractive investment option compared to Tractor Supply based on valuation metrics and earnings outlook [3][7]. Group 1: Zacks Rank and Earnings Outlook - ODP Corp. holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while Tractor Supply has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for ODP is a significant factor in its favorable ranking [7]. Group 2: Valuation Metrics - ODP has a forward P/E ratio of 5.31, significantly lower than Tractor Supply's forward P/E of 24.15 [5]. - The PEG ratio for ODP is 0.38, while Tractor Supply's PEG ratio is 2.71, suggesting ODP is undervalued relative to its expected earnings growth [5]. - ODP's P/B ratio is 0.61, compared to Tractor Supply's P/B of 11.93, further indicating ODP's relative undervaluation [6]. - These valuation metrics contribute to ODP receiving a Value grade of A, while Tractor Supply has a Value grade of C [6].