According to Zacks Equity Research, there are several reasons why Office Depot, Inc could be a promising stock option in 2019.
Zacks explains that, in the midst of “a plethora of woes”, including the current US-China trade war and “slowing global economy”, one of the bright spots on the stocks horizon could be Office Depot.
This is due to the company looking “well poised on growth track”, due to its “strategic endeavours” and its attempts to “give itself a complete makeover”.
Looking to the future, Office Depot “is concentrating on ecommerce platforms and providing innovative products and services” and is looking to bolster sales in the contract channel via “increasing penetration into adjacent categories and enhancing share of wallet with existing customers”.
In addition, the company has been making a number of strategic acquisitions across the United States, including in Wisconsin, Hawaii and New Mexico.
Among its new purchases is CompuCom Systems, the acquisition of which has helped Office Depot “acclimatise to the fast-changing retail landscape along with providing enterprise-level tech services and products to customers.”
Office Depot has also installed Tech-Zone services desks across its various branches, and “launched a subscription-based business services platform” called BizBox, which benefits small businesses and start-ups.
Although Zacks concedes that Office Depot shares have fallen by 13.4 percent over the past 6 months, looking at the long-term, Zacks states, given the “aforementioned fundamentals”, it would be “wise” to invest.
