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Aaron's Company, Inc. (AAN) Dips More Than Broader Markets: What You Should Know

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Aaron's Company, Inc. (AAN - Free Report) closed at $10.13 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.57% loss on the day. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 1.04%.

Coming into today, shares of the specialty retail had lost 18.25% in the past month. In that same time, the Consumer Discretionary sector lost 3.64%, while the S&P 500 gained 0.64%.

Investors will be hoping for strength from Aaron's Company, Inc. as it approaches its next earnings release. In that report, analysts expect Aaron's Company, Inc. to post earnings of $0.06 per share. This would mark a year-over-year decline of 80.65%. Meanwhile, our latest consensus estimate is calling for revenue of $539.95 million, down 9% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.24 per share and revenue of $2.19 billion, which would represent changes of -40.1% and -2.55%, respectively, from the prior year.

Any recent changes to analyst estimates for Aaron's Company, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Aaron's Company, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Aaron's Company, Inc. currently has a Forward P/E ratio of 8.29. This represents a discount compared to its industry's average Forward P/E of 13.85.

The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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