Rent-A-Center inventory increased 35% in 2021
Rent-A-Center, Inc. (NASDAQ: RCII) is an American company that rents public furniture and electronics and is based in Plano, Texas. RCII offers lease-to-own options for products such as furniture, appliances, consumer electronics, and computers in approximately 1,970 Rent-A-Center stores in the United States, Mexico, and Puerto Rico. Recently, Rent-A-Center employees teamed up for their annual Spring for Kids campaign, a fundraiser that supports efforts to empower families and youth.
Rent-A-Center stock has more than doubled year over year since the stock hit a 52-week low of $ 25.74 in July 2020. Additionally, RCII’s shares are up 35% since the start of the year, but are currently trading 23% from their record high of $ 66.70 in early June. Rent-A-Center stock also has a forward dividend of $ 1.24 and a dividend yield of 2.42%.
In addition, Rent-A-Center has exceeded earnings expectations in all four of its largest earnings reports. For the second quarter of 2020, RCII beat analyst estimates by $ 0.20 and reported earnings per share of $ 0.80. Rent-A-Center’s earnings per share rose to $ 1.04 in the third quarter of 2020, beating expectations by $ 0.02. For the fourth quarter of 2020, RCII saw earnings decline to $ 1.03 per share, but still beat estimates by a margin of $ 0.01. For the first quarter of 2021, Rent-A-Center reported earnings per share of $ 1.32, beating expectations by $ 0.20.
From a fundamental perspective, Rent-A-Center stock appears to be a solid investment. The Rent-A-Center share is traded at a price-earnings-ratio of 14.88 and has an extremely attractive price-earnings-ratio of 9.67. The biggest fundamental problem with the potential purchase of Rent-A-Center stock is the company’s balance sheet, which contains $ 123 million in cash and $ 1.63 billion in debt.
Finally, RCII is currently offering affordable premiums. The Schaeffer’s Volatility Index (SVI) of 43% is in the lower 13th percentile of the measured values in its annual range. This means option players are now pricing in low volatility expectations for the stock.