Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Office Depot

(

ODP

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Office Depot as such a stock due to the following factors:

  • ODP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $94.4 million.
  • ODP is up 2.5% today from today's close.

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More details on ODP:

Office Depot, Inc., together with its subsidiaries, supplies office products and services. Currently there are 4 analysts that rate Office Depot a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Office Depot has been 9.6 million shares per day over the past 30 days. Office Depot has a market cap of $4.2 billion and is part of the services sector and specialty retail industry. The stock has a beta of 2.95 and a short float of 3.9% with 1.86 days to cover. Shares are down 9.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Office Depot as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 141.3% when compared to the same quarter one year prior, rising from -$109.00 million to $45.00 million.
  • Powered by its strong earnings growth of 138.09% and other important driving factors, this stock has surged by 49.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • OFFICE DEPOT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OFFICE DEPOT INC reported poor results of -$0.67 versus -$0.22 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus -$0.67).
  • The gross profit margin for OFFICE DEPOT INC is currently lower than what is desirable, coming in at 26.08%. Regardless of ODP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.16% trails the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market, OFFICE DEPOT INC's return on equity significantly trails that of both the industry average and the S&P 500.

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