NEW YORK (TheStreet) -- Rent-A-Center (RCII) shares received a late boost on Thursday after the company was upgraded to "buy" from "neutral" by analysts at Gilford Securities.
Rent-A-Center shares are up 1.1% to 28.38 in trading today.
The upgrade comes after the company beat Thomson Reuters analysts EPS estimates of 56 cents by 1 cent in its first quarter earnings report on Monday.
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Separately, TheStreet Ratings team rates RENT-A-CENTER INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
- RCII's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for RENT-A-CENTER INC is currently very high, coming in at 93.65%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.69% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 72.5% when compared to the same quarter one year ago, falling from $47.46 million to $13.06 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, RENT-A-CENTER INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: RCII Ratings Report
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