RENT-A-CENTER, INC.

RCII
Delayed Quote. Delayed  - 10/26 04:00:00 pm
31.5USD -3.85%

Rent-A-Center, Inc. : The trend should regain control

David Meurisse
Contributor / Partner

Strategy published on : 09/22/2020 | 09:59

long trade
Target price hit

Entry price : 29.15$
Target : 32.7$
Stop-loss : 27.4$
Potential : 12.18%

The underlying tendency is to the upside for shares in Rent-A-Center, Inc. and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Investors have an opportunity to buy the stock and target the $ 32.7.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● The company shows low valuation levels, with an enterprise value at 0.6 times its sales.

● Its low valuation, with P/E ratio at 8.69 and 8.54 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For the past twelve months, EPS forecast has been revised upwards.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 20.49 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 32.53.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

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