U.S. Markets close in 1 hr 52 mins

Rent-A-Center (RCII) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Rent-A-Center (RCII) closed the most recent trading day at $26.04, moving +0.81% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.7%.

Prior to today's trading, shares of the company that leases furniture and appliances with an option to buy had lost 0.58% over the past month. This has lagged the Consumer Discretionary sector's gain of 0.77% and the S&P 500's gain of 2.04% in that time.

Wall Street will be looking for positivity from RCII as it approaches its next earnings report date. The company is expected to report EPS of $0.50, up 56.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $628.29 million, down 2.58% from the year-ago period.

RCII's full-year Zacks Consensus Estimates are calling for earnings of $2.27 per share and revenue of $2.62 billion. These results would represent year-over-year changes of +114.15% and -1.6%, respectively.

It is also important to note the recent changes to analyst estimates for RCII. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RCII is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that RCII has a Forward P/E ratio of 11.4 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Rent-A-Center, Inc. (RCII) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.