), the specialty retailer that leases household durable
merchandise to consumers on a rent-to-own basis, is set to report
fourth quarter and full-year 2013 results on Jan 27, 2014. Last
quarter, it posted a negative surprise of 19.1%. Let us see how
things are developing for this announcement.
DISNEY WALT (DIS): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis
MCGRAW HILL FIN (MHFI): Free Stock Analysis
RENT-A-CENTER (RCII): Free Stock Analysis
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Factors in the Past Quarter
The persistent deflation in electronic products along with
promotions undertaken to attract budget-constrained consumers led
to the dismal results. Further, rise in rentals and fees costs as
well as salaries and other expenses kept margins under pressure
in the last quarter.
Our proven model does not conclusively project Rent-A-Center as
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. That is not the case here as you will see below.
ESP for Rent-A-Center is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at 76
Zacks #3 Rank (Hold) :
Rent-A-Center's Zacks Rank #3 (Hold) lowers the predictive power
of ESP because this Zacks Rank when combined with a 0.00% ESP
makes surprise prediction difficult. We caution against stocks
with Zacks Rank #4 and #5 (Sell-rated stocks) going into an
earnings announcement, especially when the company is witnessing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows these to have the right combination of elements to post an
McGraw Hill Financial, Inc.
) with Earnings ESP of +1.27% and a Zacks Rank #2 (Buy)
Michael Kors Holdings Limited
) with Earnings ESP of +1.15% and a Zacks Rank #2 (Buy)
The Walt Disney Co.
) with Earnings ESP of +3.33% and a Zacks Rank #3 (Hold)