Rent-A-Center (RCII) closed the most recent trading day at $17.18, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.
Heading into today, shares of the company that leases furniture and appliances with an option to buy had gained 2.9% over the past month, lagging the Consumer Discretionary sector's gain of 4.92% and the S&P 500's gain of 5.36% 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 $0.19, up 146.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $654.47 million, up 2.43% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for RCII. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. RCII is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, RCII currently has a Forward P/E ratio of 9.84. Its industry sports an average Forward P/E of 11.82, so we one might conclude that RCII is trading at a discount comparatively.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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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