Rent-A-Center (RCII) Dips More Than Broader Markets: What You Should Know
Rent-A-Center (RCII) closed the most recent trading day at $26.37, moving -1.93% from the previous trading session. This move lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.83%.
Coming into today, shares of the company that leases furniture and appliances with an option to buy had gained 3.58% in the past month. In that same time, the Consumer Discretionary sector lost 1.71%, while the S&P 500 lost 0.1%.
RCII will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.50, up 56.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $628.29 million, down 2.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.27 per share and revenue of $2.62 billion. These totals would mark changes of +114.15% and -1.6%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for RCII. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.06% higher. RCII is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, RCII currently has a Forward P/E ratio of 11.87. For comparison, its industry has an average Forward P/E of 14.25, which means RCII is trading at a discount to the group.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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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