Here's Why Upbound Group (UPBD) is a Strong Growth Stock
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Upbound Group, Inc. (formerly Rent-A-Center, Inc.) incorporated in 1986 is a leading lease-to-own provider with operations in the United States, Puerto Rico and Mexico. The company provides services to large portion of consumers by providing them with access and the opportunity to obtain ownership of, high-quality, durable products under a flexible lease purchase agreement with no long-term debt obligation. The company currently has four operating segments. These segments include Acima segment, Rent-A-Center Business segment, Mexico segment and Brigit segment.
UPBD is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 8.6% year-over-year for the current fiscal year, with sales growth of 7.9%.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.06 to $4.16 per share. UPBD boasts an average earnings surprise of 4.8%.
Looking at cash flow, Upbound Group is expected to report cash flow growth of 9.3% this year; UPBD has generated cash flow growth of 15.2% over the past three to five years.
UPBD should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
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