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Is Rent-A-Center (RCII) Outperforming Other Consumer Discretionary Stocks This Year?

Zacks Equity Research

Investors focused on the Consumer Discretionary space have likely heard of Rent-A-Center (RCII), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question.

Rent-A-Center is a member of our Consumer Discretionary group, which includes 243 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. RCII is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for RCII's full-year earnings has moved 1.07% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that RCII has returned about 38.29% since the start of the calendar year. At the same time, Consumer Discretionary stocks have gained an average of 19.94%. This means that Rent-A-Center is performing better than its sector in terms of year-to-date returns.

Breaking things down more, RCII is a member of the Consumer Services - Miscellaneous industry, which includes 9 individual companies and currently sits at #33 in the Zacks Industry Rank. Stocks in this group have gained about 14.59% so far this year, so RCII is performing better this group in terms of year-to-date returns.

Investors with an interest in Consumer Discretionary stocks should continue to track RCII. The stock will be looking to continue its solid performance.


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