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Aaron's Holdings Company, Inc. (PRG) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of PROG Holdings (PRG - Free Report) ? Shares have been on the move with the stock up 30.5% over the past month. The stock hit a new 52-week high of $31.98 in the previous session. PROG Holdings has gained 85.4% since the start of the year compared to the -0.6% move for the Zacks Finance sector and the -0.5% return for the Zacks Financial - Consumer Loans industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 26, 2023, PROG Holdings reported EPS of $1.11 versus consensus estimate of $0.84 while it beat the consensus revenue estimate by 2.09%.
For the current fiscal year, PROG Holdings is expected to post earnings of $2.69 per share on $2.34 billion in revenues. This represents a 3.46% change in EPS on a -9.99% change in revenues. For the next fiscal year, the company is expected to earn $2.85 per share on $2.38 billion in revenues. This represents a year-over-year change of 6.25% and 1.68%, respectively.
Valuation Metrics
PROG Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
PROG Holdings has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 7.2X. On a trailing cash flow basis, the stock currently trades at 0.8X versus its peer group's average of 5.1X. Additionally, the stock has a PEG ratio of 1.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, PROG Holdings currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if PROG Holdings passes the test. Thus, it seems as though PROG Holdings shares could still be poised for more gains ahead.
How Does PRG Stack Up to the Competition?
Shares of PRG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is EZCORP, Inc. (EZPW - Free Report) . EZPW has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. EZCORP, Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, EZPW is expected to post earnings of $0.85 per share on revenue of $1.03 billion.
Shares of EZCORP, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 10.56X and a P/CF of 3.62X.
The Financial - Consumer Loans industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRG and EZPW, even beyond their own solid fundamental situation.
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Aaron's Holdings Company, Inc. (PRG) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of PROG Holdings (PRG - Free Report) ? Shares have been on the move with the stock up 30.5% over the past month. The stock hit a new 52-week high of $31.98 in the previous session. PROG Holdings has gained 85.4% since the start of the year compared to the -0.6% move for the Zacks Finance sector and the -0.5% return for the Zacks Financial - Consumer Loans industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 26, 2023, PROG Holdings reported EPS of $1.11 versus consensus estimate of $0.84 while it beat the consensus revenue estimate by 2.09%.
For the current fiscal year, PROG Holdings is expected to post earnings of $2.69 per share on $2.34 billion in revenues. This represents a 3.46% change in EPS on a -9.99% change in revenues. For the next fiscal year, the company is expected to earn $2.85 per share on $2.38 billion in revenues. This represents a year-over-year change of 6.25% and 1.68%, respectively.
Valuation Metrics
PROG Holdings may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
PROG Holdings has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 7.2X. On a trailing cash flow basis, the stock currently trades at 0.8X versus its peer group's average of 5.1X. Additionally, the stock has a PEG ratio of 1.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, PROG Holdings currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if PROG Holdings passes the test. Thus, it seems as though PROG Holdings shares could still be poised for more gains ahead.
How Does PRG Stack Up to the Competition?
Shares of PRG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is EZCORP, Inc. (EZPW - Free Report) . EZPW has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. EZCORP, Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, EZPW is expected to post earnings of $0.85 per share on revenue of $1.03 billion.
Shares of EZCORP, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 10.56X and a P/CF of 3.62X.
The Financial - Consumer Loans industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRG and EZPW, even beyond their own solid fundamental situation.