ODP(ODP, $46.72) beats Q1 earnings expectations
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.
ODP in downward trend: 10-day moving average crossed below 50-day moving average on May 02, 2022
The 10-day Moving Average for ODP crossed bearishly below the 50-day moving average on May 02, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 16 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 89%.
Throughout the month of 04/26/22 - 05/26/22, the price experienced a -11% Downtrend. During the week of 05/19/22 - 05/26/22, the stock fell -4%.
The Momentum Indicator moved below the 0 level on May 09, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on ODP as a result. In 73 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 82%.
ODP moved below its 50-day Moving Average on May 09, 2022 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 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for ODP entered a downward trend on May 26, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ODP's RSI Oscillator exited the oversold zone, 23 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +4.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where ODP advanced for three days, in 207 of 284 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
ODP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 77%. During the last month, the daily ratio of advancing to declining volumes was 1 to 2.32.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ODP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average 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 Valuation Rating of 74 (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 (1.288) is normal, around the industry mean (8.093). P/E Ratio (11.123) is within average values for comparable stocks, (27.917). ODP's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.401). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (0.248) is also within normal values, averaging (31.210).
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. ODP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 38 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a 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 specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
The average market capitalization across the Specialty Stores Industry is 6.4B. The market cap for tickers in the group ranges from 48 to 301.7B. HD holds the highest valuation in this group at 301.7B. The lowest valued company is CALI at 48.
The average weekly price growth across all stocks in the Specialty Stores Industry was -1.05%. For the same Industry, the average monthly price growth was -10.94%, and the average quarterly price growth was -21.01%. CYYHF experienced the highest price growth at 43.87%, while ECXJ experienced the biggest fall at -48.89%.
The average weekly volume growth across all stocks in the Specialty Stores Industry was 1.49%. For the same stocks of the Industry, the average monthly volume growth was 81.72% and the average quarterly volume growth was 148.3%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the 15 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 45%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.27.
52 stocks in the group of tickers exhibit a similar negative trend based on the Aroon indicator with an average likelihood of 74%.
The most notable companies in this group are Costco Wholesale Corp (NASDAQ:COST), Target Corp (NYSE:TGT), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Advance Auto Parts (NYSE:AAP), RH (NYSE:RH), Just Eat Takeaway.com NV (OTC:JTKWY), Signet Jewelers Limited (NYSE:SIG), Bed Bath & Beyond (NASDAQ:BBBY).
The average market capitalization across the group is 6.9B. The market cap for tickers in the group ranges from 0 to 206.1B. COST holds the highest valuation in this group at 206.1B. The lowest valued company is INSHF at 0.
- 5/19/22 8:24 AM: Target (TGT, $161.61), market cap dropped by $24.9B
The average weekly price growth across all stocks in the group was 2.66%. For the same group, the average monthly price growth was -9.05%, and the average quarterly price growth was -17.55%. CYYHF experienced the highest price growth at 43.87%, while FJHL experienced the biggest fall at -58.4%.
- 5/25/22 7:32 AM: CarMax (KMX, $90.79) was a top loser this week, declining -6.85%
- 5/25/22 7:32 AM: China Yongda Automobile Svcs (CYYHF, $0.87) was a top weekly gainer, with a +43.87% jump
- 5/24/22 7:01 AM: Monro (MNRO, $42.98) was a top loser this week, declining -6.34%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was 153.44%. For the same stocks of the group, the average monthly volume growth was 205.98% and the average quarterly volume growth was 235.22%
- 5/17/22 6:45 AM: The volume for Vroom stock increased for four consecutive days, resulting in a record-breaking daily growth of 182% of the 65-Day Volume Moving Average
- 5/14/22 4:17 AM: The volume for Vroom stock increased for three consecutive days, resulting in a record-breaking daily growth of 191% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for Vroom stock increased for one day, resulting in a record-breaking daily growth of 283% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows