Back to top

Analyst Blog

Zacks Equity Research

New Indiana Store for Rent-A-Center

RCII AAN

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Rent-A-Center Inc. (RCII - Analyst Report), the largest rent-to-own operator in the U.S, announced the opening of a new store in Seymour, Indiana. 

The move was in line with the company’s strategic approach of leveraging an extensive network of stores to effectively penetrate into its target markets, which in turn facilitates it to generate healthy sales and gain competitive advantage over its rivals, Aaron’s Inc. (AAN - Snapshot Report) and Advance America.

The company, through its latest store, will offer furnishings, electrical devices, electronics and computers. With the inclusion of this new store, Rent-A-Center will conduct operations through 96 locations in Indiana.

The residents of the region will now have an additional option of purchasing goods with flexible payment options (freedom to pay weekly, biweekly or monthly). Moreover, the company offers a lifetime recall service, which facilitates its customers to re-rent the same or a comparable item and receive payments.

During the recently concluded quarter, the company opened 11 new Core U.S. locations, acquired 2 stores and closed 3 stores (2 stores consolidated with existing locations and 1 location closed). The company also opened 100 RAC Acceptance stores and closed 29 stores (consolidated with existing locations).

Sixteen international locations were opened and 1 store was shuttered (consolidated with existing locations) during the quarter, bringing the count to 114 stores. ColorTyme, which is a wholly owned subsidiary of Rent-A-Center, added 5 new locations and closed 4 stores. 

For 2012, management plans to open approximately 35 domestic rent-to-own stores. Through the year, the company targets to open 40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the company aims at 300 domestic RAC Acceptance kiosk additions.

Currently, we have a long-term Neutral recommendation on the stock. Moreover, the company has a Zacks #3 Rank, which translates into a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%