The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Rent-A-Center is a stock many investors are watching right now. RCII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.99, which compares to its industry's average of 11.57. RCII's Forward P/E has been as high as 13.19 and as low as 4.44, with a median of 10.36, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RCII has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.04.
Finally, our model also underscores that RCII has a P/CF ratio of 2.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RCII's current P/CF looks attractive when compared to its industry's average P/CF of 8.56. RCII's P/CF has been as high as 2.28 and as low as 0.79, with a median of 1.87, all within the past year.
These are just a handful of the figures considered in Rent-A-Center's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCII is an impressive value stock right now.
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Is Rent-A-Center (RCII) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Rent-A-Center is a stock many investors are watching right now. RCII is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.99, which compares to its industry's average of 11.57. RCII's Forward P/E has been as high as 13.19 and as low as 4.44, with a median of 10.36, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. RCII has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.04.
Finally, our model also underscores that RCII has a P/CF ratio of 2.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RCII's current P/CF looks attractive when compared to its industry's average P/CF of 8.56. RCII's P/CF has been as high as 2.28 and as low as 0.79, with a median of 1.87, all within the past year.
These are just a handful of the figures considered in Rent-A-Center's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCII is an impressive value stock right now.