Rent-A-Center (RCII - Free Report) closed at $26.11 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 1.23% loss on the day. Elsewhere, the Dow lost 1.28%, while the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the company that leases furniture and appliances with an option to buy had gained 1.02% in the past month. In that same time, the Consumer Discretionary sector lost 0.1%, while the S&P 500 gained 1.95%.
Investors will be hoping for strength from RCII as it approaches 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 $626.23 million, down 2.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.27 per share and revenue of $2.62 billion, which would represent changes of +114.15% and -1.6%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. RCII is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, RCII currently has a Forward P/E ratio of 11.38. Its industry sports an average Forward P/E of 15.07, so we one might conclude that RCII is trading at a discount comparatively.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.