Aaron's (AAN) Stock Sinks As Market Gains: What You Should Know
Aaron's (AAN) closed the most recent trading day at $59.23, moving -0.44% from the previous trading session. This change lagged the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the rent-to-own company had gained 4.83% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.61% and outpaced the S&P 500's gain of 2.55% in that time.
Investors will be hoping for strength from AAN as it approaches its next earnings release, which is expected to be October 29, 2020. In that report, analysts expect AAN to post earnings of $1.43 per share. This would mark year-over-year growth of 95.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 4.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $4.17 billion. These totals would mark changes of +20.05% and +5.56%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AAN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 2.22% higher. AAN is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that AAN has a Forward P/E ratio of 12.73 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.93.
Meanwhile, AAN's PEG ratio is currently 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAN's industry had an average PEG ratio of 1.45 as of yesterday's close.
The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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