Rent-A-Center (RCII) closed at $18.02 in the latest trading session, marking a +0.45% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.35%. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq lost 0.39%.
Coming into today, shares of the company that leases furniture and appliances with an option to buy had gained 4.12% in the past month. In that same time, the Consumer Discretionary sector gained 5.19%, while the S&P 500 gained 4.48%.
Investors will be hoping for strength from RCII as it approaches its next earnings release, which is expected to be February 25, 2019. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. RCII is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note RCII’s current valuation metrics, including its Forward P/E ratio of 10.14. Its industry sports an average Forward P/E of 12.35, 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 159, which puts it in the bottom 38% 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.
To follow RCII in the coming trading sessions, be sure to utilize Zacks.com.
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Rent-A-Center, Inc. (RCII): Free Stock Analysis Report
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