In the latest trading session, Rent-A-Center (RCII) closed at $53.26, marking a -0.62% move from the previous day. This change lagged the S&P 500’s 0.2% gain on the day.
Coming into today, shares of the company that leases furniture and appliances with an option to buy had lost 4.66% in the past month. In that same time, the Consumer Discretionary sector lost 0.22%, while the S&P 500 gained 5.66%.
Wall Street will be looking for positivity from RCII as it approaches its next earnings report date. This is expected to be November 3, 2021. In that report, analysts expect RCII to post earnings of $1.51 per share. This would mark year-over-year growth of 45.19%. Meanwhile, our latest consensus estimate is calling for revenue of $1.18 billion, up 65.14% from the prior-year quarter.
RCII’s full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $4.61 billion. These results would represent year-over-year changes of +77.34% and +63.91%, respectively.
Investors might also notice recent changes to analyst estimates for RCII. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. RCII currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that RCII has a Forward P/E ratio of 8.56 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 18.93.
The Consumer Services – Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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