Rent-A-Center (RCII) closed at $17.63 in the latest trading session, marking a +0.86% move from the prior day. The stock lagged the S&P 500’s daily gain of 1.56%. Elsewhere, the Dow gained 1.77%, while the tech-heavy Nasdaq added 2.2%.
Heading into today, shares of the company that leases furniture and appliances with an option to buy had gained 7.97% over the past month, lagging the Consumer Discretionary sector’s gain of 8.66% and outpacing the S&P 500’s gain of 6.41% in that time.
Investors will be hoping for strength from RCII as it approaches its next earnings release, which is expected to be February 19, 2019. The company is expected to report EPS of $0.19, up 146.34% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $654.47 million, up 2.43% from the year-ago period.
Investors should also note any 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. RCII is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note RCII’s current valuation metrics, including its Forward P/E ratio of 9.88. Its industry sports an average Forward P/E of 12.82, 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 industry currently has a Zacks Industry Rank of 92, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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
Be the first to comment