Rent-to-own specialty retailer,
), is set to report its second-quarter 2014 results on Jul 25,
2014. Last quarter, it posted in line earnings. Let us see how
things are developing for this announcement.
Growth Factors this Quarter
Continuously deteriorating core operations remains a drag on
Aaron's performance. As a result, earlier this month the company
had lowered its earnings and sales forecast for the second quarter
of fiscal 2014. Also, weakness in the consumer electronics sector
and rising competition from online giants remain concerns. However,
the recently acquired Progressive business has helped to partly
offset disappointing results at its core operations. We believe the
company's turnaround initiatives will prove a time consuming
Our proven model does not conclusively project Aaron's as likely to
beat earnings this quarter. This is because a stock needs to have
both a positive
and Zacks Rank #1 #2 or #3 for this to happen. This is not the case
here as you will see below.
ESP for Aaron's is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at 36
Zacks Rank #5 (Strong Sell):
We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated
stocks) going into an earnings announcement, especially when the
company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these to have the right combination of elements to post an
Archer Daniels Midland Company
) Earnings ESP stands at +9.33% and it carries a Zacks Rank #2
) with an Earnings ESP of +1.37% holds a Zacks Rank #2.
) has an Earnings ESP of +13.21% and a Zacks Rank #2.
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
AARONS INC (AAN): Free Stock Analysis Report
ARCHER DANIELS (ADM): Free Stock Analysis
COLGATE PALMOLI (CL): Free Stock Analysis
MARINEMAX INC (HZO): Free Stock Analysis Report
To read this article on Zacks.com click here.