New Highs for Office Depot Stock After Alibaba Alliance

ODP has added 74% since its late-December bottom

Office Depot Inc (NASDAQ:ODP) is up 1.7% to trade at $3.62, and earlier tapped a new annual high of $3.82, after the office supply retailer announced a partnership with Chinese e-commerce giant Alibaba (BABA). The two will co-launch a website focused on helping small- and medium-sized U.S. businesses.

Office Depot stock is set to close at its highest level since an early October bear gap in 2017. Since falling near $2 in late December, ODP has now added 74%, guided higher by its ascending 20-day moving average. What's more, the equity has turned in only one weekly loss in 2019.

A shift in analyst attention could keep the wind at ODP's back. There are only four brokerages covering the stock, three of which rate it a "hold" or "strong sell." Plus, the security's consensus 12-month price target of $3.67 is in line with current trading levels.

In the wake of Office Depot's earnings report last week, short-term volatility expectations have imploded on the stock. At last check, the equity's Schaeffer's Volatility Index (SVI) of 47% ranks in the 3rd annual percentile.