ODP shares climbed on first-quarter earnings beat and plans to spin off its distribution business into a separate publicly traded company.
For the first quarter, adjusted earnings came in at $1.21 a share, exceeding the FactSet consensus estimate of 72 cents a share.
Revenue rose +13% from the year-ago quarter to $2.36 billion, but was below the FactSet estimate of $2.41 billion.
Office Depot owner ODP Corp said it would spin off its distribution platform, which schools and offices use to buy supplies, into a separate company. The separated company would include ODP's business solutions division and Canadian office supplies retailer Grand & Toy.
The new company will also own ODP's regional office supply distribution businesses, it said.
The Aroon Indicator for ODP entered a downward trend on April 30, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 193 similar instances where the Aroon Indicator formed such a pattern. In of the 193 cases the stock moved lower. This puts the odds of a downward move at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where ODP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
ODP moved below its 50-day moving average on April 30, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ODP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ODP broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on April 23, 2024. You may want to consider a long position or call options on ODP as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ODP just turned positive on April 23, 2024. Looking at past instances where ODP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ODP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.745) is normal, around the industry mean (12.888). P/E Ratio (14.991) is within average values for comparable stocks, (35.906). Projected Growth (PEG Ratio) (0.661) is also within normal values, averaging (2.536). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (0.268) is also within normal values, averaging (88.545).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of office products, services and solutions
Industry SpecialtyStores