Yahoo Finance Here's Why Upbound Group (UPBD) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Upbound Group (UPBD)
Upbound Group, Inc. (formerly Rent-A-Center, Inc.) incorporated in 1986 is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to large portion of consumers by providing them with access and the opportunity to obtain ownership of, high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation. The company currently has four operating segments. These segment include Acima segment, Rent-A-Center Business segment, Mexico segment and Rent-A-Center Franchising International, Inc.
UPBD is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 8.2X for the current fiscal year compared to the Financial - Leasing Companies industry's P/E of 8.4X. Additionally, UPBD has a PEG Ratio of 4.1 and a Price/Cash Flow ratio of 1.1X. Value investors should also note UPBD's Price/Sales ratio of 0.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.08 to $3.76 per share. UPBD has an average earnings surprise of 23.1%.
UPBD should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Upbound Group, Inc. (UPBD) : Free Stock Analysis Report
