5 Best Retail Stocks To Invest In Right Now: Office Depot Inc.(ODP)
Office Depot, Inc., together with its subsidiaries, supplies office products and services. Its North American Retail division sells an assortment of merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture under various labels, including Office Depot, Viking Office Products, Foray, Ativa, Break Escapes, Niceday, and Worklife through its chain of office supply stores. It also provides printing, reproduction, mailing, shipping, and other services, as well as personal computer support and network installation service. As of December 25, 2010, this division operated 1,147 office supply stores in the United States and Canada. The company?s North American Business Solutions division sells nationally branded and private brand office supplies, technology products, furniture, and services to small- to medium-sized customers through a dedicated sales force, catalogs, and Internet. Its International division sells o ffice products and services through direct mail catalogs, contract sales forces, Internet sites, and retail stores using a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 25, 2010, it sold its office products to customers in 53 countries in North America, Europe, Asia, and Latin America. This division operated, through wholly-owned or majority-owned entities, 97 retail stores in France, Hungary, South Korea, and Sweden; and participates under licensing and merchandise arrangements in South Korea, Thailand, India, Israel, Japan, and the Middle East. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Advisors' Opinion:- [By Dan Burrows]
Office supply retailers have long seen their market eroded by online rivals, notably Amazon (AMZN). That’s why Office Depot (ODP) merged with OfficeMaxlast year.
[By Michael Lewis] - [By Ben Levisohn]
Office Depot (ODP) has plunged 17% to $4.45 after missing earnings and revenue forecasts.Home Depot (HD), however, has gained 2.2% to $79.60 after beating forecasts by two cents thanks to a stronger U.S. housing market.
- [By Jon C. Ogg]
We still have many key oil and energy companies reporting in the week ahead but we have now seen the sector leaders report earnings. Earnings previews have been prepared for the following stocks:
CME Group Inc. (NASDAQ: CME) Hertz Global Holdings Inc. (NYSE: HTZ) Kellogg Company (NYSE: K) DirecTV (NASDAQ: DTV) Office Depot Inc. (NYSE: ODP) and OfficeMax Incorporated (NYSE: OMX) Tesla Motors Inc. (NASDAQ: TSLA) T-Mobile US, Inc. (NYSE: TMUS) American Water Works Company Inc. (NYSE: AWK) Duke Energy Corp. (NYSE: DUK) QUALCOMM Inc. (NASDAQ: QCOM) Time Warner Inc. (NYSE: TWX) Whole Foods Market Inc. (NASDAQ: WFM) Groupon Inc. (NASDAQ: GRPN) Molycorp Inc. (NYSE: MCP) The Walt Disney Company (NYSE: DIS) Priceline.com Inc. (NASDAQ: PCLN) The Wendy’s Company (NYSE: WEN)CME Group Inc. (NASDAQ: CME) reports earnings on Monday morning. With all of the exchange mergers of the last decade this remains one of the dominant exchanges. Estim! ates are ! $0.73 EPS and $713.3 million in revenue. Keep in mind that this exchange is now worth $25 billion. At $74.70, the consensus analyst price target is only just barely higher at almost $75.50.
Foolish bottom line
Though I was not a fan of brick-and-mortar Staples, I am inclined to take a deeper look at its slimmer self. The company seems to be shifting to a more asset-light, high-ROIC, low-capex model that resembles that of growth companies -- tech in particular. The company is planning to pay down nearly $870 million in debt this year, and still has $1.4 billion in cash and equivalents. A year-end enterprise value of roughly $10 billion (an approximation) implies an EV/FCF ratio of 11.1 times. For comparison, Office Depot (NYSE: ODP ) expects $10million to $20 million in free cash flow for the year, implying an EV/EBITDA of 64 times to 128 times. On an EV/EBITDA basis, however, the two look nearly identical.
source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/5-best-retail-stocks-to-invest-in-right-now.html
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