Rent-A-Center Inc. (RCII): Today's Featured Diversified Services Loser

Rent-A-Center ( RCII) pushed the Diversified Services industry lower today making it today's featured Diversified Services loser. The industry as a whole closed the day up 1%. By the end of trading, Rent-A-Center fell 28 cents (-0.8%) to $34.80 on average volume. Throughout the day, one million shares of Rent-A-Center exchanged hands as compared to its average daily volume of 688,600 shares. The stock ranged in price between $34.54-$35.40 after having opened the day at $35.02 as compared to the previous trading day's close of $35.08. Other company's within the Diversified Services industry that declined today were: Iconix Brand Group ( ICON), down 14.6%, Zipcar ( ZIP), down 10.8%, Rainmaker Systems ( RMKR), down 9.1%, and Information Services Group ( III), down 6.9%.

Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. Rent-A-Center has a market cap of $2.17 billion and is part of the services sector. The company has a P/E ratio of 13.4, below the average diversified services industry P/E ratio of 13.8 and below the S&P 500 P/E ratio of 17.7. Shares are down 5.2% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Rent-A-Center a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Rent-A-Center as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, CIBT Education Group ( MBA), up 12.8%, National American University Holdings ( NAUH), up 12.7%, Research Frontiers ( REFR), up 11.6%, and Swisher Hygiene ( SWSH), up 9.6%, were all gainers within the diversified services industry with Accenture ( ACN) being today's featured diversified services industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).
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