The sluggish pace of the recovery has really put a damper on retail stocks, including the world's largest office supply retailer.
As consumers and businesses keep a watchful eye on their spending, Staples' sales are likely to feel the heat.
"We're seeing a reluctance to hire on the part of many firms, especially small businesses, and Staples' sales are closely tied to employment levels," said Brad Thomas, analyst at Keybanc Capital Markets.
To compensate, Staples has focused on cutting costs and has been successful at delivering profits.
Despite those positive financial results, Thomas says the stock is likely to remain "dead in the water" for the next year as the labor market's recovery continues to stall.
But he is more confident in Staples' potential for the longer term.
"If I had to pick a stock to tuck away for 5 or 10 years, Staples would be on the short list of names I would consider and feel safe with," he said. "They have a leading position with the office products business, and the management team is thoughtful, innovative and hungry."
NEXT: Transocean: Snap it up
