Rent-A-Center Inc. (RCII) shares are trading at lower $31.31 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $35.50.
To add more color to this target, the company’s high over the last year is $33.51 and the low is $11.69. Over the last 52 weeks, RCII is up 22.64% while the S&P 500 is up 16.12%%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, RCII reported a profit of $399.53 million. Rent-A-Center Inc. also saw revenues increase to $683.75 million. In addition, RCII has free cash flow of $239.97 million as of 06-2020. The company’s EBITDA came in at $218.74 million which compares well with its peers.
RCII booked profit margins of 5.90%, its Return on Equity (ROE) is 34.40%, and its Return on Assets is 10.20%. All told, it is clear that, RCII needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RCII has a short ratio of 7.03 and outstanding shares of 53.80M.
RCII has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.91 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.85. Rent-A-Center Inc. RCII also noted assets of $1.58 billion at the end of the last quarter. Investors should also keep an eye on sector updates as RCII has historically followed its peers on positive news.
All told, Rent-A-Center Inc. RCII has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RCII represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Rent-A-Center Inc. RCII is now commanding a market cap of 1.71B and a float of 53.11M. RCII is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RCII stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in RCII, either long or short, and we have not been compensated for this article.