We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dividends and Growth: Why RCII is a Strong Buy Retail Stock
Read MoreHide Full Article
Rent-A-Center stock has soared over the last 12 months and crushed Target (TGT - Free Report) , Walmart (WMT - Free Report) , Amazon (AMZN - Free Report) , and many others during the past three years. The lease-to-own retailer also purchased a firm in February that sets it up to grow within the booming e-commerce LTO space.
More than a Rental…
Rent-A-Center is a lease-to-own retailer that sells furniture, appliances, TVs, and more. RCII’s sales jumped 5.4% in 2020, driven by stronger growth in the second half of the year.
On top of that, the company announced in February it closed its purchase of Acima Holdings to help boost its e-commerce offerings, as the lease-to-own space becomes more popular in the digital commerce age.
Rent-A-Center’s management has made a strong strategic move that Wall Street has loved so far. "The acquisition dramatically increases our growth profile, and we believe we can achieve $6 billion in consolidated total revenue with mid-teens consolidated EBITDA margins in 2023 as we benefit from scale, profitability, and free cash flow generation,” CEO Mitch Fadel said in prepared remarks.
Looking ahead, Zacks estimates call for RCII’s revenue to soar 55% to reach $4.4 billion in fiscal 2021 and climb another 14% in FY22. Both of these would represent the company’s strongest top-line expansion in almost 15 years.
Meanwhile, its adjusted earnings are projected to climb by 50% and 17%, respectively over this stretch. And the nearby chart shows how much stronger the company’s earnings outlook has turned since its report and acquisition announcement.
Bottom Line
RCII’s strong positive EPS revisions help it land a Zacks Rank #1 (Strong Buy) right now. The stock also holds a “B” grade for Value and five of the seven brokerage recommendations Zacks has are “Strong Buys.” Plus, RCII shares have soared 270% in the past year to outpace Shopify (SHOP - Free Report) and it has skyrocketed 500% in the last three years.
The stock currently rests at around $59 a share to put it about 10% below its mid-March highs. And it sits near neutral RSI levels, which could give Rent-A-Center plenty of more room to run. On top of that, RCII’s 2.1% dividend yield beats the 10-year U.S. Treasury’s 1.7%, Walmart’s 1.6%, and Target’s 1.3%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Dividends and Growth: Why RCII is a Strong Buy Retail Stock
Rent-A-Center stock has soared over the last 12 months and crushed Target (TGT - Free Report) , Walmart (WMT - Free Report) , Amazon (AMZN - Free Report) , and many others during the past three years. The lease-to-own retailer also purchased a firm in February that sets it up to grow within the booming e-commerce LTO space.
More than a Rental…
Rent-A-Center is a lease-to-own retailer that sells furniture, appliances, TVs, and more. RCII’s sales jumped 5.4% in 2020, driven by stronger growth in the second half of the year.
On top of that, the company announced in February it closed its purchase of Acima Holdings to help boost its e-commerce offerings, as the lease-to-own space becomes more popular in the digital commerce age.
Rent-A-Center’s management has made a strong strategic move that Wall Street has loved so far. "The acquisition dramatically increases our growth profile, and we believe we can achieve $6 billion in consolidated total revenue with mid-teens consolidated EBITDA margins in 2023 as we benefit from scale, profitability, and free cash flow generation,” CEO Mitch Fadel said in prepared remarks.
Looking ahead, Zacks estimates call for RCII’s revenue to soar 55% to reach $4.4 billion in fiscal 2021 and climb another 14% in FY22. Both of these would represent the company’s strongest top-line expansion in almost 15 years.
Meanwhile, its adjusted earnings are projected to climb by 50% and 17%, respectively over this stretch. And the nearby chart shows how much stronger the company’s earnings outlook has turned since its report and acquisition announcement.
Bottom Line
RCII’s strong positive EPS revisions help it land a Zacks Rank #1 (Strong Buy) right now. The stock also holds a “B” grade for Value and five of the seven brokerage recommendations Zacks has are “Strong Buys.” Plus, RCII shares have soared 270% in the past year to outpace Shopify (SHOP - Free Report) and it has skyrocketed 500% in the last three years.
The stock currently rests at around $59 a share to put it about 10% below its mid-March highs. And it sits near neutral RSI levels, which could give Rent-A-Center plenty of more room to run. On top of that, RCII’s 2.1% dividend yield beats the 10-year U.S. Treasury’s 1.7%, Walmart’s 1.6%, and Target’s 1.3%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>