"Under the Radar" is a daily feature that uncovers little-known companies worthy of investors' consideration. Check in at 5 every morning to find out about stocks that tend to beat their bigger brethren.

ATLANTA ( TheStreet) -- Dollar Tree ( DLTR), Family Dollar Stores ( FDO) and Wal-Mart Stores ( WMT) were top-performing stocks last year. As the economy rebounds, investors are growing tired of thrift stocks, but it would be a bad move to dump discounters now.

Consumers will probably limit spending long after the recession ends. Here's a lesser-known discount chain that isn't slowing down.

Atlanta-based Aaron's ( AAN) is a rent-to-own retailer that sells furniture, electronics, appliances and computers. The company makes its own furniture and sells lower-priced products from companies such as Sony ( SNE), Dell ( DELL) and Hewlett-Packard ( HPQ). Its lease model is attracting Americans who are conserving cash or can't afford the upfront cost of big-ticket items.

The company's second-quarter revenue rose 5% to $416 million as net income increased 19% to $28 million and earnings per share climbed 24% to 51 cents. The company's operating margin expanded from 9% to 11% and the net margin strengthened from 6% to 7%. Aaron's has multiplied its cash reserves by 13 to $83 million since the year-earlier quarter. And a debt-to-equity ratio of 0.1 indicates modest leverage.

We rate Aaron's "buy." The company has increased earnings for six straight quarters, and boosted the low end of its full-year earnings forecast. Same-store sales, an important performance gauge, rose 8% during the second quarter.

Despite the gain, Aaron's shares are down 4% this year, underperforming the Dow Jones Industrial Average and S&P 500 Index. But the stock is trading at an attractive price-to-earnings ratio of 14, making it 48% cheaper than its peers and on par with the Russell 3000 Index.

Shares of discount retailers have fallen out of favor as financial, tech and energy stocks surge from their March lows. However, American thrift will outlive the bear market and companies like Aaron's are likely to outperform through next year.

-- Reported by Jake Lynch in Boston. Feedback can be sent to jake.lynch@thestreet.com.