Rent-A-Center (RCII) closed at $26.63 in the latest trading session, marking a +0.11% move from the prior day. This move outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1%.
Heading into today, shares of the company that leases furniture and appliances with an option to buy had gained 5.3% over the past month, outpacing the Consumer Discretionary sector's gain of 1.09% and the S&P 500's gain of 2.68% in that time.
Investors will be hoping for strength from RCII as it approaches its next earnings release, which is expected to be August 7, 2019. On that day, RCII is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 19.15%. Meanwhile, our latest consensus estimate is calling for revenue of $641.66 million, down 2.15% from the prior-year quarter.
RCII's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $2.61 billion. These results would represent year-over-year changes of +100% and -1.83%, respectively.
Investors might also notice recent changes to analyst estimates for RCII. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RCII is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, RCII currently has a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 15.12, which means RCII is trading at a discount to the group.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Rent-A-Center, Inc. (RCII) : Free Stock Analysis Report
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