Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Rent-A-Center . RCII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.40 right now. For comparison, its industry sports an average P/E of 10.83. Over the last 12 months, RCII's Forward P/E has been as high as 14.94 and as low as 8.44, with a median of 10.16.
Another valuation metric that we should highlight is RCII's P/B ratio of 5.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 9.69. Over the past year, RCII's P/B has been as high as 5.88 and as low as 2.99, with a median of 4.47.
Finally, investors will want to recognize that RCII has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.12. Over the past year, RCII's P/CF has been as high as 4.41 and as low as 1.86, with a median of 3.04.
Value investors will likely look at more than just these metrics, but the above data helps show that Rent-A-Center is likely undervalued currently. And when considering the strength of its earnings outlook, RCII sticks out at as one of the market's strongest value stocks.
Image: Bigstock
Is Rent-A-Center (RCII) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Rent-A-Center . RCII is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.40 right now. For comparison, its industry sports an average P/E of 10.83. Over the last 12 months, RCII's Forward P/E has been as high as 14.94 and as low as 8.44, with a median of 10.16.
Another valuation metric that we should highlight is RCII's P/B ratio of 5.20. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 9.69. Over the past year, RCII's P/B has been as high as 5.88 and as low as 2.99, with a median of 4.47.
Finally, investors will want to recognize that RCII has a P/CF ratio of 3.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.12. Over the past year, RCII's P/CF has been as high as 4.41 and as low as 1.86, with a median of 3.04.
Value investors will likely look at more than just these metrics, but the above data helps show that Rent-A-Center is likely undervalued currently. And when considering the strength of its earnings outlook, RCII sticks out at as one of the market's strongest value stocks.