Rent-A-Center Inc (RCII) provides electronic and equipment rentals to public venues. The company’s stock is at 52-week highs. Investments in Rent-A-Center in the Internet-rental business are positive, but there is no obvious prerequisite for the company’s shares’ growth.
More than 3,000 Rent-A-Center stores operate across the U.S., Canada, Puerto Rico, and Mexico. The brand name Get It Now, Home Choice, and Acceptance Now are used by the company. Investors have grown very optimistic about the reorganization of Rent-A-Center into a digital leader in the rental industry.
More specifically, Rent-A-Center Inc (RCII) plans to acquire virtual rental operator Acima in December 2020, further boosting the business transformation. Online transactions are becoming the norm for many businesses so that virtual rentals may be the next big growth driver for Rent-A-Center.
By the end of February, Rent-A-Center intends to announce the quarter’s results and the entire year. The company’s revenue for 2020 is estimated to be approximately $2.814 billion. Based on their analysis, the company is satisfied with the year’s performance, as the annual revenue is up more than 5% and similar sales have increased by nearly 14 %.
The Rent-A-Center Inc (RCII) report also indicates a 25% increase in preferred rental invoices. However, overall rental income was achieved during the quarter on a per-square-foot basis despite supply chain limitations. GAAP earnings are expected to range from $ 234 million to $ 241 million for the full of 2020.
The community seems particularly supportive of this stock, as evidenced by analysts predicting its price to increase over the next 12 months. The consensus price target of seven analysts to Rent-A-Center Inc. (RCII) is $50.14, which is significantly below its current trading price. Analysts predict that the stock will reach a 12-month high of $58.00 while falling to a low of $45.00 if the stock falls.