Unnamed: 0
stringlengths 3
8
| Date
stringlengths 23
23
| Article_title
stringlengths 1
250
| Stock_symbol
stringlengths 1
5
| Url
stringlengths 44
135
| Publisher
stringclasses 1
value | Author
stringclasses 1
value | Article
stringlengths 1
343k
| Lsa_summary
stringlengths 3
53.9k
| Luhn_summary
stringlengths 1
53.9k
| Textrank_summary
stringlengths 1
53.9k
| Lexrank_summary
stringlengths 1
53.9k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
8900.0
|
2022-06-13 00:00:00 UTC
|
Zacks.com featured highlights The Aaron's Company, MarineMax, Avnet, Vishay Intertechnology and Huntsman
|
AAN
|
https://www.nasdaq.com/articles/zacks.com-featured-highlights-the-aarons-company-marinemax-avnet-vishay-intertechnology
|
nan
|
nan
|
For Immediate Release
Chicago, IL – June 13, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corp. HUN.
5 Low Price-to-Sales Stocks That Can Uplift Your Portfolio
Investment in stocks made after an analysis of valuation metrics is usually considered one of the best practices. When considering valuation metrics, the price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks incurring losses or are in an early cycle of development, generating meager or no profits.
What's Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued.
A stock's price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. So, a stock with a price-to-sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar's worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and ultimately a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book, and Debt/Equity before arriving at any investment decision.
The Aaron's Company Inc., MarineMax, Avnet, Vishay Intertechnology and Huntsman Corp. are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
Here are the five of the 32 stocks that qualified the screening:
Aaron's is a major omnichannel provider of lease-to-own ("LTO") and purchase solutions, mainly to underserved and credit-challenged customers. Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
This Atlanta, GA-based company's business also includes Woodhaven Furniture Industries ("Woodhaven"). Woodhaven is the manufacturer and supplier of most of the bedding and a large portion of the upholstered furniture leased and sold at Aaron's company-operated and franchised stores. The stock currently has a Value Score of A and a Zacks Rank #1.
MarineMax is a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
MarineMax also provides marine parts and accessories, boat covers, trailer parts, water sport accessories, high-performance accessories and a line of boating accessories. HZO currently has a Zacks Rank #1 and a Value Score of A.
Phoenix, AZ-based Avnet is one of the world's largest distributors of electronic components and computer products. Avnet's customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet maintains an extensive inventory, including electronic products from more than 300 component and system manufacturers, which it distributes to customers worldwide. It distributes products for companies like International Business Machines Corp. and Hewlett-Packard Co. AVT currently has a Value Score of B and a Zacks Rank #1. It has a long-term earnings growth rate of 37.2%. You can see the complete list of today's Zacks #1 Rank stocks here.
Vishay is a global manufacturer and supplier of semiconductors and passive components. Its semiconductor products include metal oxide semiconductor field-effect transistors (MOSFETs), Diodes and Optoelectronic Components. These are typically used to perform functions such as switching, amplifying, rectifying, routing or transmitting electrical signals, power conversion, and power management.
Vishay is benefiting from strong automotive and industrial end-market demand. Automotive continues to remain the key driver owing to the growing proliferation of electronic content in vehicles and the rising adoption of driver-assistance systems across the world. Further, solid demand for IoT censoring, infrastructure programs and alternative energy is driving VSH's performance in the industrial market. The stock currently has a Value Score of A and a Zacks Rank #2. It has a long-term earnings growth rate of 22.7%.
Huntsman Corporation is among the world's largest manufacturers of differentiated and commodity chemical products. The company markets its products to a diverse group of industrial and consumer customers. Its products include MDI, polyols, propylene oxide, amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes.
Huntsman's products are used in a number of applications including aerospace, automotive, construction products, adhesives, personal care and hygiene, durable and nondurable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining and textile chemicals. HUN currently has a Value Score of A and a Zacks Rank #1. It has a long-term earnings growth rate of 12.5%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1937250/5-low-price-to-sales-stocks-that-can-uplift-your-portfolio
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avnet, Inc. (AVT): Free Stock Analysis Report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
MarineMax, Inc. (HZO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corp. HUN. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
|
For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corp. HUN. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
|
For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corp. HUN. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
|
For Immediate Release Chicago, IL – June 13, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corp. HUN. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report What's Price-to-Sales Ratio?
|
8901.0
|
2022-06-10 00:00:00 UTC
|
5 Low Price-to-Sales Stocks That Can Uplift Your Portfolio
|
AAN
|
https://www.nasdaq.com/articles/5-low-price-to-sales-stocks-that-can-uplift-your-portfolio
|
nan
|
nan
|
Investment in stocks made after an analysis of valuation metrics is usually considered one of the best practices. When considering valuation metrics, the price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks incurring losses or are in an early cycle of development, generating meager or no profits.
What’s Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. So, a stock with a price-to-sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and ultimately a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book, and Debt/Equity before arriving at any investment decision.
The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
Screening Parameters
Price to Sales less than Median Price to Sales for its Industry: The lower the price-to-sales ratio, the better.
Price to Earnings using F(1) estimate less than Median Price to Earnings for its Industry: The lower, the better.
Price to Book (common Equity) less than Median Price to Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt to Equity (Most Recent) less than Median Debt to Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are the five of the 32 stocks that qualified the screening:
Aaron's is a major omnichannel provider of lease-to-own (“LTO”) and purchase solutions, mainly to underserved and credit-challenged customers. Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
This Atlanta, GA-based company’s business also includes Woodhaven Furniture Industries ("Woodhaven"). Woodhaven is the manufacturer and supplier of most of the bedding and a large portion of the upholstered furniture leased and sold at Aaron's company-operated and franchised stores. The stock currently has a Value Score of A and a Zacks Rank #1.
MarineMax is a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
MarineMax also provides marine parts and accessories, boat covers, trailer parts, water sport accessories, high-performance accessories and a line of boating accessories. HZO currently has a Zacks Rank #1 and a Value Score of A.
Phoenix, AZ-based Avnet is one of the world’s largest distributors of electronic components and computer products. Avnet’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet maintains an extensive inventory, including electronic products from more than 300 component and system manufacturers, which it distributes to customers worldwide. It distributes products for companies like International Business Machines Corp. and Hewlett-Packard Co. AVT currently has a Value Score of B and a Zacks Rank #1. It has a long-term earnings growth rate of 37.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vishay is a global manufacturer and supplier of semiconductors and passive components. Its semiconductor products include metal oxide semiconductor field-effect transistors (MOSFETs), Diodes and Optoelectronic Components. These are typically used to perform functions such as switching, amplifying, rectifying, routing or transmitting electrical signals, power conversion, and power management.
Vishay is benefiting from strong automotive and industrial end-market demand. Automotive continues to remain the key driver owing to the growing proliferation of electronic content in vehicles and the rising adoption of driver-assistance systems across the world. Further, solid demand for IoT censoring, infrastructure programs and alternative energy is driving VSH’s performance in the industrial market. The stock currently has a Value Score of A and a Zacks Rank #2. It has a long-term earnings growth rate of 22.7%.
Huntsman Corporation is among the world's largest manufacturers of differentiated and commodity chemical products. The company markets its products to a diverse group of industrial and consumer customers. Its products include MDI, polyols, propylene oxide, amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes.
Huntsman’s products are used in a number of applications including aerospace, automotive, construction products, adhesives, personal care and hygiene, durable and nondurable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining and textile chemicals. HUN currently has a Value Score of A and a Zacks Rank #1. It has a long-term earnings growth rate of 12.5%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avnet, Inc. (AVT): Free Stock Analysis Report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
MarineMax, Inc. (HZO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Avnet AVT, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report What’s Price-to-Sales Ratio?
|
8902.0
|
2022-06-10 00:00:00 UTC
|
Best Value Stocks to Buy for June 10th
|
AAN
|
https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-june-10th
|
nan
|
nan
|
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 10th:
Star Bulk Carriers Corp. SBLK: This shipping company of dry-bulk cargoes carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.7% over the last 60 days.
Star Bulk Carriers Corp. Price and Consensus
Star Bulk Carriers Corp. price-consensus-chart | Star Bulk Carriers Corp. Quote
Star Bulk has a price-to-earnings ratio (P/E) of 3.79, compared with 19.10 for the industry. The company possesses a Value Score of B.
Star Bulk Carriers Corp. PE Ratio (TTM)
Star Bulk Carriers Corp. pe-ratio-ttm | Star Bulk Carriers Corp. Quote
Patrick Industries, Inc. PATK: This company that engages in the manufacturing of component products and distribution of building products carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.7% over the last 60 days.
Patrick Industries, Inc. Price and Consensus
Patrick Industries, Inc. price-consensus-chart | Patrick Industries, Inc. Quote
Patrick Industries has a price-to-earnings ratio (P/E) of 4.66, compared with 7.10 for the industry. The company possesses a Value Score of A.
Patrick Industries, Inc. PE Ratio (TTM)
Patrick Industries, Inc. pe-ratio-ttm | Patrick Industries, Inc. Quote
The Aaron's Company, Inc. AAN: This lease-to-own and purchase solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
The Aaron's Company, Inc. Price and Consensus
The Aaron's Company, Inc. price-consensus-chart | The Aaron's Company, Inc. Quote
Aaron’s has a price-to-earnings ratio (P/E) of 6.94, compared with 8.20 for the industry. The company possesses a Value Score of A.
The Aaron's Company, Inc. PE Ratio (TTM)
The Aaron's Company, Inc. pe-ratio-ttm | The Aaron's Company, Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Star Bulk Carriers Corp. (SBLK): Free Stock Analysis Report
Patrick Industries, Inc. (PATK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The company possesses a Value Score of A. Patrick Industries, Inc. PE Ratio (TTM) Patrick Industries, Inc. pe-ratio-ttm | Patrick Industries, Inc. Quote The Aaron's Company, Inc. AAN: This lease-to-own and purchase solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 10th: Star Bulk Carriers Corp. SBLK: This shipping company of dry-bulk cargoes carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.7% over the last 60 days.
|
The company possesses a Value Score of A. Patrick Industries, Inc. PE Ratio (TTM) Patrick Industries, Inc. pe-ratio-ttm | Patrick Industries, Inc. Quote The Aaron's Company, Inc. AAN: This lease-to-own and purchase solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Star Bulk Carriers Corp. Price and Consensus Star Bulk Carriers Corp. price-consensus-chart | Star Bulk Carriers Corp. Quote Star Bulk has a price-to-earnings ratio (P/E) of 3.79, compared with 19.10 for the industry.
|
The company possesses a Value Score of A. Patrick Industries, Inc. PE Ratio (TTM) Patrick Industries, Inc. pe-ratio-ttm | Patrick Industries, Inc. Quote The Aaron's Company, Inc. AAN: This lease-to-own and purchase solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Star Bulk Carriers Corp. PE Ratio (TTM) Star Bulk Carriers Corp. pe-ratio-ttm | Star Bulk Carriers Corp. Quote Patrick Industries, Inc. PATK: This company that engages in the manufacturing of component products and distribution of building products carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.7% over the last 60 days.
|
The company possesses a Value Score of A. Patrick Industries, Inc. PE Ratio (TTM) Patrick Industries, Inc. pe-ratio-ttm | Patrick Industries, Inc. Quote The Aaron's Company, Inc. AAN: This lease-to-own and purchase solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 10th: Star Bulk Carriers Corp. SBLK: This shipping company of dry-bulk cargoes carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.7% over the last 60 days.
|
8903.0
|
2022-06-06 00:00:00 UTC
|
6 Quality Dividend Stocks to Buy With Secure Payout Ratios
|
AAN
|
https://www.nasdaq.com/articles/6-quality-dividend-stocks-to-buy-with-secure-payout-ratios
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When Wall Street is as wild as it is right now, investors may look to find portfolio safety among dividend stocks. And, these quality dividend stocks should catch their eye, as they all have low payout ratios. That means that dividends, as a portion of earnings, are a low percentage. In turn, this ensures that investors can be confident that the company will keep paying the dividend, even if the pressures of a recession reduce earnings.
Here is a simple example. Most boards do not like to see dividends take up more than 40% to 45% of earnings, on a per-share basis. So let’s assume a company makes $1 earnings per share (EPS) and pays out 22% or 22 cents in dividends per share (DPS).
If the company goes through a recession and sees a hit 33% hit to its earnings, the EPS will fall to 66.67 cents. Now the 22-cent dividend takes up just 33% of its 66.67 cents EPS. This is still well within the range of acceptability for the board to keep paying the dividend.
This is important since a stable dividend tends to evoke a stable stock price. If investors fear that a dividend cut is imminent, they will push the stock down ahead of time. At some point, management and the board are almost forced into cutting the dividend. But with a low payout ratio, these forces are less powerful during a recession.
7 Oversold Value Stocks to Buy for June
So, with all of that in mind, let’s dive in and look at these six dividend stocks that investors should keep their eye on.
Ticker Company Price
HRB H&R Block $35.65
F Ford $13.44
RUTH Ruth’s Hospitality Group $18.80
AAN Aaron’s $18.70
EBAY eBay $47.60
ROST Ross Stores $81.47
Dividend Stocks to Buy: H&R Block (HRB)
Source: TippyTortue / Shutterstock
Everyone has to do their taxes, and that’s where a tax prep software and services company like H&R Block (NYSE:HRB) comes in. In turn, this means the firm will always be in business and gives it high-quality earnings
Overall, H&R Block is forecast to earn $3.46 per share and $3.68 in the fiscal year to June 30, 2023. At a price of just under $36 per share, HRB stock now has a forward P/E multiple of 8.9 times.
Moreover, with its $1.08 per share, HRB’s dividend yield of 3% makes the stock very attractive. That dividend is more than covered by the company’s earnings, making the dividend very secure. So, overall, this is a steady-earner and high-yield dividend company.
In addition, it has paid dividends every year for the past 32 years. That makes investors want to buy and hold this stock on a long-term basis.
Ford (F)
Source: Vitaliy Karimov / Shutterstock.com
In recent news, Ford (NYSE:F) announced on June 2 that it would invest $3.7 billion for assembly plants in three states to produce both electric vehicles (EVs) and gasoline-powered cars. This includes $2 billion to speed up the production of its electric Ford 150 Lightning electric pickup at three U.S. manufacturing plants.
In turn, that will increase its output of EV pickups to 150,000. Unfortunately, though, that’s still lower than the 1.4 million EVs that Tesla (NASDAQ:TSLA) will produce this year.
These trucks are high margin and will elevate its earnings this year and next. For example, analysts now forecast EPS will rise by 12% from $1.93 to $2.16 by the end of 2023.
Thus, this makes Ford stock very cheap. At around $13.50 per share now, it is on a forward multiple of just 6.4 times for 2023. That is more than sufficient to cover its 30 cents annual dividend and puts its payout ratio at just 13.9% of its forecast $2.16 earnings for 2023.
7 of the Best Stocks to Buy Now if You Have $100 to Spend
Moreover, this gives Ford stock a very attractive 2.22% dividend yield. This makes F stock one of the best quality dividend stocks.
Dividend Stocks to Buy: Ruth’s Hospitality Group (RUTH)
Source: Jonathan Weiss / Shutterstock.com
Ruth’s Hospitality Group (NASDAQ:RUTH) runs 150 Ruth’s Chris Steakhouse restaurants (company and franchise-owned). The company is forecast to earn $1.36 for the year ending 2022.
That puts its multiple, at $18.95 as of June 4, at just 13.9x for 2022. Moreover, with EPS rising 19.1% to $1.62 in 2023, RUTH stock is very cheap at 11.7x.
Moreover, with its dividend at 26 cents, its payout ratio is just 19% for the year ending 2022. That is very low and ensures that the company can keep paying the dividend. Its 1.37% dividend yield seems very secure as a result.
This makes the stock one of the best quality dividend stocks for investors to consider jumping into.
Aaron’s (AAN)
Source: IgorGolovniov / Shutterstock.com
Aaron’s (NYSE:AAN) has 1,074 stores and 236 independently owned franchised stores that provide lease-to-own furniture, electronics, and other products. The company’s same-store sales just rose 9.6% on a two-year basis during the first quarter.
Moreover, analysts now project sales will keep rising 8.5% next year to $2.56 billion. On top of that earnings are forecast to rise 13% to $3.13 per share in 2023. That puts AAN stock, at $18.47 on June 3, on a forward multiple of just 5.9x. This is a very low multiple.
On top of that, the dividend is only 41 cents, but it produces a dividend yield of 2.22%. And the 41 cents dividend represents just 14.8% of the forecast earnings of $2.77 in 2022. That is a very low payout ratio and ensures that the company can keep paying the dividend even if a recession lowers its revenue and earnings from the present forecasts.
7 Growth Stocks to Buy After Any Market Dive
This makes Aaron’s one of the best quality dividend stocks on this list.
Dividend Stocks to Buy: eBay (EBAY)
Source: BigTunaOnline / Shutterstock.com
eBay, Inc (NASDAQ:EBAY) is a well-known marketplace for goods and unique items. It acts as an exchange that takes a fee from every transaction.
Right now EBAY stock is very cheap now. It trades for just 10.7 forecasts for earnings of $4.40 in 2023, with the stock price at $47.09 on June 9. Moreover, its dividend is set at 88 cents, or just 22% of its $4.00 EPS forecast for 2022.
That is a low payout ratio and ensures that the company has plenty of earnings power to cover the dividend. This is important since eBay has just started paying a dividend in the past three years.
Given its growth, low multiple, low payout ratio, and low P/E ratio, this is probably the best of the quality dividend stocks on this list.
Ross Stores (ROST)
Source: Andriy Blokhin / Shutterstock.com
Ross Stores (NASDAQ:ROST) owns and operates about 1,649 Ross Dress for Less stores and 303 dd’s DISCOUNTS stores throughout the US. Everyone loves a bargain, and that is what you can find in these stores.
In fact, the ROST stock is also a bargain as well. For example, the stock yields 1.41% and trades on a forward P/E multiple of just 15.9x. Analysts forecast the earnings will rise by 16.6% for the year ending Jan. 1, 2024. Granted that is over one year in the future, but it shows that analysts don’t forecast a recession in its earnings.
Moreover, given that the dividend at $1.17 represents just 26% of its earnings forecast for 2022 of just $4.47, this gives it a low and sustainable payout ratio. Combined with its dividend yield, growth rate, and P/E, ROST stock looks like a quality dividend stock.
On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 6 Quality Dividend Stocks to Buy With Secure Payout Ratios appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Ticker Company Price HRB H&R Block $35.65 F Ford $13.44 RUTH Ruth’s Hospitality Group $18.80 AAN Aaron’s $18.70 EBAY eBay $47.60 ROST Ross Stores $81.47 Dividend Stocks to Buy: H&R Block (HRB) Source: TippyTortue / Shutterstock Everyone has to do their taxes, and that’s where a tax prep software and services company like H&R Block (NYSE:HRB) comes in. Aaron’s (AAN) Source: IgorGolovniov / Shutterstock.com Aaron’s (NYSE:AAN) has 1,074 stores and 236 independently owned franchised stores that provide lease-to-own furniture, electronics, and other products. That puts AAN stock, at $18.47 on June 3, on a forward multiple of just 5.9x.
|
Ticker Company Price HRB H&R Block $35.65 F Ford $13.44 RUTH Ruth’s Hospitality Group $18.80 AAN Aaron’s $18.70 EBAY eBay $47.60 ROST Ross Stores $81.47 Dividend Stocks to Buy: H&R Block (HRB) Source: TippyTortue / Shutterstock Everyone has to do their taxes, and that’s where a tax prep software and services company like H&R Block (NYSE:HRB) comes in. Aaron’s (AAN) Source: IgorGolovniov / Shutterstock.com Aaron’s (NYSE:AAN) has 1,074 stores and 236 independently owned franchised stores that provide lease-to-own furniture, electronics, and other products. That puts AAN stock, at $18.47 on June 3, on a forward multiple of just 5.9x.
|
Ticker Company Price HRB H&R Block $35.65 F Ford $13.44 RUTH Ruth’s Hospitality Group $18.80 AAN Aaron’s $18.70 EBAY eBay $47.60 ROST Ross Stores $81.47 Dividend Stocks to Buy: H&R Block (HRB) Source: TippyTortue / Shutterstock Everyone has to do their taxes, and that’s where a tax prep software and services company like H&R Block (NYSE:HRB) comes in. Aaron’s (AAN) Source: IgorGolovniov / Shutterstock.com Aaron’s (NYSE:AAN) has 1,074 stores and 236 independently owned franchised stores that provide lease-to-own furniture, electronics, and other products. That puts AAN stock, at $18.47 on June 3, on a forward multiple of just 5.9x.
|
Ticker Company Price HRB H&R Block $35.65 F Ford $13.44 RUTH Ruth’s Hospitality Group $18.80 AAN Aaron’s $18.70 EBAY eBay $47.60 ROST Ross Stores $81.47 Dividend Stocks to Buy: H&R Block (HRB) Source: TippyTortue / Shutterstock Everyone has to do their taxes, and that’s where a tax prep software and services company like H&R Block (NYSE:HRB) comes in. Aaron’s (AAN) Source: IgorGolovniov / Shutterstock.com Aaron’s (NYSE:AAN) has 1,074 stores and 236 independently owned franchised stores that provide lease-to-own furniture, electronics, and other products. That puts AAN stock, at $18.47 on June 3, on a forward multiple of just 5.9x.
|
8904.0
|
2022-05-30 00:00:00 UTC
|
Is Aaron's (AAN) Stock Undervalued Right Now?
|
AAN
|
https://www.nasdaq.com/articles/is-aarons-aan-stock-undervalued-right-now
|
nan
|
nan
|
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.32 right now. For comparison, its industry sports an average P/E of 11.63. Over the last 12 months, AAN's Forward P/E has been as high as 13.21 and as low as 5.94, with a median of 8.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAN has a P/S ratio of 0.32. This compares to its industry's average P/S of 0.58.
Another great Consumer Services - Miscellaneous stock you could consider is SP Plus (SP), which is a # 2 (Buy) stock with a Value Score of A.
SP Plus also has a P/B ratio of 3.12 compared to its industry's price-to-book ratio of 5.83. Over the past year, its P/B ratio has been as high as 4.20, as low as 2.77, with a median of 3.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Aaron's and SP Plus are likely undervalued currently. And when considering the strength of its earnings outlook, AAN and SP sticks out as one of the market's strongest value stocks.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
SP Plus Corporation (SP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
One company value investors might notice is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. Over the last 12 months, AAN's Forward P/E has been as high as 13.21 and as low as 5.94, with a median of 8.82.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report One company value investors might notice is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report One company value investors might notice is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
AAN has a P/S ratio of 0.32. One company value investors might notice is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
8905.0
|
2022-05-25 00:00:00 UTC
|
Aaron's (AAN) Down 10.5% Since Last Earnings Report: Can It Rebound?
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-down-10.5-since-last-earnings-report%3A-can-it-rebound
|
nan
|
nan
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). Shares have lost about 10.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Aaron's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Aaron's Q1 Earnings Beat Estimates, Sales Lag
Aaron's been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. Also, it witnessed accretive gains from the acquisition of BrandsMart.
Notably, the company opened 19 GenNext locations in first-quarter 2022. This, along with the 116 existing stores at the beginning of the quarter, accounted for 13.2% of lease and retail revenues in the first quarter. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Earlier, it anticipated 100 new GenNext locations in 2022. But due to global supply-chain challenges, the remaining 20 stores will be completed in 2023.
In first-quarter 2022, the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same. Both metrics declined year over year due to the ongoing inflationary pressures, uncertainty related to geopolitical conflict and supply-chain challenges.
However, the company remains optimistic about solid revenue and double-digit adjusted EBITDA growth on an annual basis in the next five years. Driven by these factors, AAN raised the 2022 view, including the BrandsMart buyout completed on Apr 1, 2022.
Let’s Delve Deeper
Aaron's delivered adjusted earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents. However, the bottom line declined 29.8% year over year from $1.24 per share reported in the prior-year quarter. On a GAAP basis, the company recorded earnings of 68 cents per share, indicating a decrease from $1.04 reported in the year-ago quarter.
Consolidated revenues fell 5.2% to $456.1 million and missed the Zacks Consensus Estimate of $473 million. This is mainly due to reduced lease revenues stemming from expected normalization in the lease renewal rate and a decline in early purchase options. On the flip side, a larger lease portfolio remained an upside.
Same-store revenues fell 4.3% year over year in the first quarter due to expected normalization in the lease renewal rate and a decline in early purchase options, which somewhat offset the larger lease portfolio. However, same-store revenues rose 9.6% on a two-year basis. E-commerce lease revenues were up 3.9%, accounting for 15.4% of the total revenues.
Breaking up the components of consolidated revenues, we note that lease and retail revenues declined 5% in the reported quarter to $421.9 million. Non-retail sales, which mainly include merchandise sales to franchisees, fell 7.1% year over year to $27.8 million. Franchise royalties and fees in the quarter slumped 9.8% to $6.3 million from the year-ago quarter.
Aaron’s adjusted EBITDA declined 25.9% year over year to $54.7 million. Adjusted EBITDA margin contracted 340 basis points (bps) to 12% in the reported quarter due to an expected reduction in lease renewal rates and potential growth in write-offs, which was partly offset by lower personnel and operating costs.
Financial Position
The company ended the quarter with cash and cash equivalents of $13.5 million, and shareholders’ equity of $730.9 million. In the reported quarter, it generated cash from operations of $29.1 million. Capital expenditure is expected to be $100-$125 million for 2022. AAN expects a free cash flow of $45-$55 million for 2022.
In the reported quarter, it bought back 261,924 shares of Aaron's common stock worth $5.7 million. AAN’s board raised the share repurchase authorization on Mar 2 from $150-$250 million, which will be valid till Dec 31, 2024. As of Mar 31, 2022, the company has shares worth $141.2 million remaining under its share repurchase program. The board paid out a quarterly dividend of 11.25 cents per share on Apr 5.
Outlook
In a bid to reflect gains from the BrandsMart buyout, management revised its 2022 view. The company expects revenues of $2.32-$2.39 billion, up from the earlier mentioned $1.775-$1.825 billion. Adjusted EBITDA is likely to be $200-$215 million, which compares favorably with the prior stated $180-$190 million.
It also envisions adjusted earnings of $2.65-$2.90. Excluding the BrandsMart acquisition, the previous guidance remains valid.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Aaron's has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. It comes with little surprise Aaron's has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Driven by these factors, AAN raised the 2022 view, including the BrandsMart buyout completed on Apr 1, 2022.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Driven by these factors, AAN raised the 2022 view, including the BrandsMart buyout completed on Apr 1, 2022.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Driven by these factors, AAN raised the 2022 view, including the BrandsMart buyout completed on Apr 1, 2022.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022.
|
8906.0
|
2022-05-18 00:00:00 UTC
|
5 Low Price-to-Sales Stocks That Boast Solid Potential
|
AAN
|
https://www.nasdaq.com/articles/5-low-price-to-sales-stocks-that-boast-solid-potential
|
nan
|
nan
|
Investment in stocks made after an analysis of valuation metrics is usually considered one of the best practices. When considering valuation metrics, the price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks incurring losses or are in an early cycle of development, generating meager or no profits.
What’s Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued.
A stock’s price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. So, a stock with a price-to-sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar’s worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and ultimately a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book, and Debt/Equity before arriving at any investment decision.
The Aaron's Company Inc. AAN, MarineMax HZO, Marathon Oil MRO, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
Screening Parameters
Price to Sales less than Median Price to Sales for its Industry: The lower the price-to-sales ratio, the better.
Price to Earnings using F(1) estimate less than Median Price to Earnings for its Industry: The lower, the better.
Price to Book (common Equity) less than Median Price to Book for its Industry: This is another parameter to ensure the value feature of a stock.
Debt to Equity (Most Recent) less than Median Debt to Equity for its Industry: A company with less debt should have a stable price-to-sales ratio.
Current Price greater than or equal to $5: The stocks must be trading at a minimum of $5 or higher.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are the five of the 37 stocks that qualified the screening:
Aaron's is a major omnichannel provider of lease-to-own (“LTO”) and purchase solutions, mainly to underserved and credit-challenged customers. Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
This Atlanta, GA-based company’s business also includes Woodhaven Furniture Industries ("Woodhaven"). Woodhaven is the manufacturer and supplier of most of the bedding and a large portion of the upholstered furniture leased and sold at Aaron's company-operated and franchised stores. The stock currently has a Value Score of A and a Zacks Rank #1.
MarineMax is a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
MarineMax also provides marine parts and accessories, boat covers, trailer parts, water sport accessories, high-performance accessories and a line of boating accessories. HZO currently has a Zacks Rank #1 and a Value Score of A.
Houston, Texas-based Marathon is a leading oil and natural gas exploration and production (‘E&P’) company with operations in the United States and Africa. As of the end of 2021, Marathon Oil had approximately 1,106 million oil-equivalent barrels in net proved reserves (52% crude oil/condensate and 68% proved developed), and 89% were located in the United States.
Marathon’s oil and gas operations are mainly concentrated in the United States (primarily Oklahoma, Eagle Ford, Bakken and Northern Delaware) and Equatorial Guinea. The company’s robust operational metrics suggest strong long-term cash flows that should support further price appreciation. The company currently has a Zacks Rank #2 and a Value Score of B. Marathon has a 3–5 year EPS growth rate of 14.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vishay is a global manufacturer and supplier of semiconductors and passive components. Its semiconductor products include metal oxide semiconductor field-effect transistors (MOSFETs), Diodes and Optoelectronic Components. These are typically used to perform functions such as switching, amplifying, rectifying, routing or transmitting electrical signals, power conversion, and power management.
Vishay is benefiting from strong automotive and industrial end-market demand. Automotive continues to remain the key driver owing to the growing proliferation of electronic content in vehicles and the rising adoption of driver-assistance systems across the world. Further, solid demand for IoT censoring, infrastructure programs and alternative energy is driving VSH’s performance in the industrial market. The stock currently has a Value Score of A and a Zacks Rank #1.
Huntsman Corporation is among the world's largest manufacturers of differentiated and commodity chemical products. The company markets its products to a diverse group of industrial and consumer customers. Its products include MDI, polyols, propylene oxide, amines, surfactants, maleic anhydride, epoxy-based polymer formulations, textile chemicals and dyes.
Huntsman’s products are used in a number of applications including aerospace, automotive, construction products, adhesives, personal care and hygiene, durable and nondurable consumer products, digital inks, electronics, medical, packaging, coatings and construction, power generation, refining and textile chemicals. HUN currently has a Value Score of B and a Zacks Rank #1.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marathon Oil Corporation (MRO): Free Stock Analysis Report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
MarineMax, Inc. (HZO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Marathon Oil MRO, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Marathon Oil MRO, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Marathon Oil MRO, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
|
The Aaron's Company Inc. AAN, MarineMax HZO, Marathon Oil MRO, Vishay Intertechnology VSH and Huntsman Corporation HUN are some stocks with a low price-to-sales ratio and the potential to offer higher returns. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report What’s Price-to-Sales Ratio?
|
8907.0
|
2022-05-17 00:00:00 UTC
|
Aaron's (AAN) Banks On Brand Strength & Solid Online Show
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-banks-on-brand-strength-solid-online-show
|
nan
|
nan
|
The Aaron’s Company AAN looks well-placed for long-term growth, driven by its robust lease-to-own portfolio, strength in its core businesses, the solid e-commerce business and sturdy performance in GenNext stores. Further, it witnessed accretive gains from the acquisition of BrandsMart. These upsides are likely to continue working well for AAN, helping it counter escalated inflation and supply-chain hurdles.
Although the AAN stock fell 2% in the past three months, it outperformed the industry’s decline of 10.4%.
Factors in Aaron’s Favor
The Zacks Rank #1 (Strong Buy) company has been witnessing strength in its e-commerce platform, even after stores reopened. In first-quarter 2022, e-commerce lease revenues were up 3.9%, accounting for 15.4% of the total revenues. The uptick can be attributable to increased investments in digital marketing, improved shopping experience, same-day and next-day delivery services, product personalization, and a broader assortment, including the latest product categories. Its express delivery program also bodes well.
Image Source: Zacks Investment Research
The company also remains focused on its GenNext strategy. The GenNext concept stores come with easier-to-navigate main showrooms, offering new furniture, appliances and electronics. The stores have been performing well. The company opened 19 GenNext locations in first-quarter 2022. This, along with the 116 existing stores at the beginning of the quarter, accounted for 13.2% of lease and retail revenues in the first quarter.
As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Earlier, it anticipated 100 new GenNext locations for 2022. But due to the global supply-chain challenges, the remaining 20 stores will be completed in 2023.
Recently, Aaron’s completed the acquisition of appliance and electronics retailer, BrandsMart. With the buyout, Aaron’s will be able to offer high-quality furniture, appliances, electronics, and other home goods on affordable lease and retail purchase options to its customers. The move is expected to strengthen AAN’s market position and help expand the customer base. The deal is expected to generate significant cost synergies and aid Aaron’s top line in the near term. Management anticipates more than $3 billion in total annual revenues and more than $300 million in adjusted EBITDA from this transaction by 2026.
Hurdles on The Way
Despite the upsides, Aaron’s is reeling under ongoing inflationary pressures, uncertainty related to geopolitical conflict and supply-chain challenges. This hurt its first-quarter 2022 results, wherein the top line lagged the Zacks Consensus Estimate and declined year over year.
Consolidated revenues fell 5.2% due to reduced lease revenues from the expected normalization in the lease renewal rate and a decline in early purchase options. Same-store revenues fell 4.3% year over year in the first quarter due to the same factors. Also, adjusted earnings of 87 cents per share declined 29.8% year over year.
Looking Ahead
Management raised the 2022 view, driven by potential gains from its BrandsMart buyout. The company expects revenues of $2.32-$2.39 billion, up from the earlier mentioned $1.775-$1.825 billion. Adjusted EBITDA is likely to be $200-$215 million, which compares favorably with the prior stated $180-$190 million. It also issued the bottom-line view, wherein adjusted earnings are envisioned to be $2.65-$2.90.
Earnings estimates for the current financial year have increased 10% to $2.74 over the past 30 days. This, along with a VGM Score A, reflects its inherent strength.
Other Stocks to Consider
Some other top-ranked stocks from the Consumer Discretinary sector are Delta Apparel DLA, Oxford Industries OXM and GIII Apparel Group GIII.
GIII Apparel, a manufacturer, designer and distributor of apparel and accessories, presently sports a Zacks Rank #1. GIL has a trailing four-quarter earnings surprise of 160.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 8.7% and 5.2% from the year-ago period’s reported numbers, respectively.
Oxford Industries, which is involved in designing, sourcing, marketing and distributing products bearing the trademarks of its owned and licensed brands, currently flaunts a Zacks Rank #1. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers.
Delta Apparel, a manufacturer of knitwear products, currently has a Zacks Rank #2 (Buy). DLA has a trailing four-quarter earnings surprise of 95.5%, on average.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report
Oxford Industries, Inc. (OXM): Free Stock Analysis Report
Delta Apparel, Inc. (DLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron’s Company AAN looks well-placed for long-term growth, driven by its robust lease-to-own portfolio, strength in its core businesses, the solid e-commerce business and sturdy performance in GenNext stores. These upsides are likely to continue working well for AAN, helping it counter escalated inflation and supply-chain hurdles. Although the AAN stock fell 2% in the past three months, it outperformed the industry’s decline of 10.4%.
|
The Aaron’s Company AAN looks well-placed for long-term growth, driven by its robust lease-to-own portfolio, strength in its core businesses, the solid e-commerce business and sturdy performance in GenNext stores. These upsides are likely to continue working well for AAN, helping it counter escalated inflation and supply-chain hurdles. Although the AAN stock fell 2% in the past three months, it outperformed the industry’s decline of 10.4%.
|
The Aaron’s Company AAN looks well-placed for long-term growth, driven by its robust lease-to-own portfolio, strength in its core businesses, the solid e-commerce business and sturdy performance in GenNext stores. These upsides are likely to continue working well for AAN, helping it counter escalated inflation and supply-chain hurdles. Although the AAN stock fell 2% in the past three months, it outperformed the industry’s decline of 10.4%.
|
As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. The Aaron’s Company AAN looks well-placed for long-term growth, driven by its robust lease-to-own portfolio, strength in its core businesses, the solid e-commerce business and sturdy performance in GenNext stores. These upsides are likely to continue working well for AAN, helping it counter escalated inflation and supply-chain hurdles.
|
8908.0
|
2022-05-17 00:00:00 UTC
|
SiriusXM (SIRI) to Offer Live Audio PGA Championship Broadcast
|
AAN
|
https://www.nasdaq.com/articles/siriusxm-siri-to-offer-live-audio-pga-championship-broadcast
|
nan
|
nan
|
SiriusXM SIRI recently announced that it would cover the 2022 PGA Championship to take place between May 19 and May 22 in Oklahama.
According to the broadcasting agreement, SiriusXM will provide live audio broadcasts of the Championship play-by-play in co-production with Westwood One. SiriusXM will also provide live look-ins during its programming, twice a day (morning and afternoon), to provide listeners play-by-play and updates on featured groups playing earlier in the day.
The company will be airing the broadcasts nationwide on channel 208 or 92 on SiriusXM radios. The subscribers can listen to it on the SiriusXM radio in-vehicle and the SiriusXM app.
Sirius XM Holdings Inc. Price and Consensus
Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote
Focus on Broadcasting Agreements Help Expand User Base
The company has been recovering from the coronavirus-led disruptions, especially in terms of ad spendings. As is evident in IAB’s Ful Year 2021 Report, digital audio was the fastest-growing segment last year, capturing the highest YoY growth of 57.9%, at $4.9 billion. The trend is likely to continue in the near term. In the last reported quarter, SiriusXM’s advertisement revenues climbed 8.2% year over year to $383 million.
Self-pay subscribers increased 3% year over year to 32 million in the first quarter of 2022. The company expects approximately 500,000 new self-pay SiriusXM subscribers this year. An expanding content portfolio with recent broadcasting agreements is expected to drive the top line and bolster subscriber growth in the near term.
The company’s recent multi-year deal extension with Formula 1, which allows SiriusXM to continue to provide coverage of every F1 race to subscribers nationwide throughout 2024, also bodes well for its robust content portfolio and aids customer acquisition. It adds to the ongoing measures taken by the company to expand its content offerings.
Additionally, SiriusXM also offered its subscribers comprehensive nationwide coverage of the Kentucky Derby, which took place on May 7 and May 8.
The company has introduced several new pop-up channels, limited engagement channels, holiday specials, exclusive video, podcasts and best-of-live across satellite and app-based platforms. These are expected to have driven customer engagement on its platform and fueled subscriber growth.
Zacks Rank and Stocks to Consider
Currently, SiriusXM holds a Zacks Rank #3 (Hold)
SiriusXM’s shares have fallen 3.5% year to date compared with the Zacks Broadcast Radio and Television industry’s decline of 52.9%. The Consumer Discretionary sector has tumbled 29.7%.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are H&R Block HRB, which sports a Zacks Rank #1 (Strong Buy), and WillScot Mobile Mini WSC and Aaron's AAN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
H&R Block shares have returned 38.3% against the Zacks Consumer Services – Miscellaneous industry’s fall of 17.3% and the Consumer Discretionary sector’s plunge of 29.7% in the year-to-date period.
WillScot Mobile Mini stock has declined 15.3% against the Zacks Furniture industry’s decline of 16.8% and the Consumer Discretionary sector’s fall of 29.7% in the year-to-date period.
Shares of Aaron's have plunged 19.3% compared with the Zacks Consumer Services – Miscellaneous industry’s decline of 17.3% and the Consumer Discretionary sector’s fall of 29.7% in the year-to-date period.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI): Free Stock Analysis Report
H&R Block, Inc. (HRB): Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some better-ranked stocks in the Zacks Consumer Discretionary sector are H&R Block HRB, which sports a Zacks Rank #1 (Strong Buy), and WillScot Mobile Mini WSC and Aaron's AAN, each carrying a Zacks Rank #2 (Buy) at present. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report An expanding content portfolio with recent broadcasting agreements is expected to drive the top line and bolster subscriber growth in the near term.
|
Some better-ranked stocks in the Zacks Consumer Discretionary sector are H&R Block HRB, which sports a Zacks Rank #1 (Strong Buy), and WillScot Mobile Mini WSC and Aaron's AAN, each carrying a Zacks Rank #2 (Buy) at present. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Shares of Aaron's have plunged 19.3% compared with the Zacks Consumer Services – Miscellaneous industry’s decline of 17.3% and the Consumer Discretionary sector’s fall of 29.7% in the year-to-date period.
|
Some better-ranked stocks in the Zacks Consumer Discretionary sector are H&R Block HRB, which sports a Zacks Rank #1 (Strong Buy), and WillScot Mobile Mini WSC and Aaron's AAN, each carrying a Zacks Rank #2 (Buy) at present. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Sirius XM Holdings Inc. Price and Consensus Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote Focus on Broadcasting Agreements Help Expand User Base The company has been recovering from the coronavirus-led disruptions, especially in terms of ad spendings.
|
Some better-ranked stocks in the Zacks Consumer Discretionary sector are H&R Block HRB, which sports a Zacks Rank #1 (Strong Buy), and WillScot Mobile Mini WSC and Aaron's AAN, each carrying a Zacks Rank #2 (Buy) at present. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report An expanding content portfolio with recent broadcasting agreements is expected to drive the top line and bolster subscriber growth in the near term.
|
8909.0
|
2022-05-12 00:00:00 UTC
|
Roblox (RBLX) Q1 Earnings Miss Estimates, Revenues Up Y/Y
|
AAN
|
https://www.nasdaq.com/articles/roblox-rblx-q1-earnings-miss-estimates-revenues-up-y-y
|
nan
|
nan
|
Roblox RBLX reported a loss of 27 cents per share in first-quarter 2022, missing the Zacks Consensus Estimate by 28.57%. The company had reported a loss of 46 cents per share in the year-ago quarter.
Revenues increased 38.8% year over year to $537.13 million but missed the consensus mark by 1.88%. The year-over-year upside can be attributed to the company’s efforts to optimize long-term retention and engagement among consumers.
Net bookings declined 3.2% year over year to $631.21 million, down from $652.25 million in the year-ago quarter.
Revenue by Geography
United States and Canada revenues (66% of total revenues) were up 34.8% year over year to $356.66 million.
Europe revenues (18% of total revenues), on a reported basis, increased 36.6% year over year to $99.2 million.
Revenues in Asia-Pacific, including Australia and New Zealand (9% of total revenues) were up 62.4% year over year, at $45.99 million.
Revenues in the rest of the world (7% of total revenues) rose 63.7% year over year to $35.29 million.
Roblox Corporation Price, Consensus and EPS Surprise
Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote
User Base Details
Daily paying users increased roughly from 675,000 to approximately 685,000 in the first quarter. Monetization per daily paying user declined 5% year over year in the reported quarter, mainly offset by an elevated COVID-19 impact in 2021.
In the first quarter, average daily active users (DAUs) were 54.1 million, up 28% year over year, driven by the overall increase in engagement on the Roblox platform.
In the reported quarter, DAUs in India were up 160% year over year. Japan saw three times relative growth in DAUs, reaching 183,000 in the first quarter compared with the year-ago quarter’s levels.
Hours engaged were up 22% year over year, reaching 11.8 billion in the first quarter of 2022.
Operating Details
Developer exchange fees in the first quarter shot up by 23.7%, reaching $147.12 million. Infrastructure and trust & safety expenses rose 50.2% year over year to $141.36 million.
Research & development and sales & marketing expenses were up 83.9% and 45.5% year over year to $177.8 million and $29.1 million, respectively. General & administrative expenses declined 38.8% year over year to $57.8 million.
Adjusted EBITDA came in at $67.9 million compared with the year-ago quarter’s figure of $190.2 million.
Balance Sheet
As of Mar 31, 2022, Roblox had cash and cash equivalents of $3.13 billion compared with $3 billion as of Dec 31, 2021.
Cash flow from operating activities in first-quarter 2022 was $156.4 million compared with the year-ago quarter’s level of $164.5 million. The cash flow provided by operating activities in the previous quarter was $122.2 million.
Free cash flow was $104.7 million in the first quarter compared with the previous quarter’s free cash inflow of $77.3 million and the year-ago quarter’s level of $142.1 million.
Zacks Rank and Stocks to Consider
Currently, Roblox carries a Zacks Rank #4 (Sell).
RBLX shares are down 76.7% in the year-to-date period compared with the Zacks Gaming industry’s plunge of 41.5% and the Consumer Discretionary sector’s fall of 31.9%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aaron’s shares are down 22.6% in the year-to-date period against the Zacks Consumer Services - Miscellaneous industry’s decline of 22.6% and the Consumer Discretionary sector’s fall of 31.9%.
NeoGames shares are down 57.2% in the year-to-date period against the Gaming industry’s decline of 41.6% and the Consumer Discretionary sector’s fall of 31.9%.
WillScot Mobile Mini shares are down 18% in the year-to-date period against the Zacks Furniture industry’s decline of 19.6% and the Consumer Discretionary sector’s fall of 31.9%.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC): Free Stock Analysis Report
NeoGames S.A. (NGMS): Free Stock Analysis Report
Roblox Corporation (RBLX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report RBLX shares are down 76.7% in the year-to-date period compared with the Zacks Gaming industry’s plunge of 41.5% and the Consumer Discretionary sector’s fall of 31.9%.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Roblox Corporation Price, Consensus and EPS Surprise Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote User Base Details Daily paying users increased roughly from 675,000 to approximately 685,000 in the first quarter.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Net bookings declined 3.2% year over year to $631.21 million, down from $652.25 million in the year-ago quarter.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, sporting a Zacks Rank #1 (Strong Buy), NeoGames NGMS and WillScot Mobile Mini WSC, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Hours engaged were up 22% year over year, reaching 11.8 billion in the first quarter of 2022.
|
8910.0
|
2022-05-11 00:00:00 UTC
|
Liberty Global (LBTYA) Q1 Earnings Rise Y/Y, Revenues Fall
|
AAN
|
https://www.nasdaq.com/articles/liberty-global-lbtya-q1-earnings-rise-y-y-revenues-fall
|
nan
|
nan
|
Liberty Global's LBTYA earnings from continuing operations in first-quarter 2022 amounted to $1.075 billion, up 24.4% year over year.
Revenues plunged 47% year over year to $1.85 billion. On a rebased basis, revenues increased 1.5% year over year.
The Zacks Consensus Estimate for earnings and revenues were pegged at a loss of 18 cents per share and $1.91 billion, respectively.
Liberty Global lost 3,900 customer relationships in the reported quarter versus 33,100 additions in the year-ago quarter.
Liberty Global PLC Price, Consensus and EPS Surprise
Liberty Global PLC price-consensus-eps-surprise-chart | Liberty Global PLC Quote
Top-Line Details
The average revenue per unit (“ARPU”) per cable customer relationship declined 4.2 % to $66.47.
Mobile ARPU (including interconnect revenues), on a reported basis, increased 9.1% to $6.81. On a rebased basis, the figure dropped 3.8%.
Mobile ARPU (excluding interconnect revenues), on a reported basis, rose 13.9% to $24.10. On a rebased basis, the figure was down 2.2%.
In Belgium, Liberty Global lost 5,500 customer relationships compared with a loss of 4,500 in the year-ago quarter.
Belgium revenues, on a reported basis, declined 6.3% year over year to $724.4 million. On a rebased basis, revenues inched up 0.7%.
In Switzerland, Liberty Global gained 5,400 customer relationships compared with the additions of 5,100 in the year-ago quarter.
Switzerland revenues, on a reported basis, declined 2.4% year over year to $821.4 million. On a rebased basis, revenues moved up 1%.
The company, in Ireland, lost 1,400 customer relationships against additions of 2,600 in the year-ago quarter.
Ireland revenues, on a reported basis, fell 6.1% to $127.8 million. On a rebased basis, the top line increased 0.9%.
In Slovakia, Liberty Global lost 2,400 customer relationships versus additions of 1,500 in the year-ago quarter.
Central and other revenues, on a reported basis, increased 50.8% to $181.4 million. On a rebased basis, the top line increased 8.9%.
Joint Venture Details
Liberty Global’s venture portfolio remained flat during the quarter and is currently valued at $3.4 billion. Key drivers for this sequential valuation decline is lower value of the company’s ITV stake and an overall relatively limited investment of approximately $80 million in the reported quarter.
Liberty Global’s non-consolidated joint venture — Virgin Media O2 — reported revenues of $3.4 billion, was broadly flat year over year on an FX neutral pro-forma basis, primarily driven by growth in mobile revenue, including a year over year increase in handset revenue.
Virgin Media O2 witnessed a strong demand for premium connectivity and broadband speed during the reported quarter, driven by an increase in fixed and mobile prices and continued investments. Postpaid mobile net additions were 11,000, while broadband net additions remained broadly flat with 1,000 net reductions in the reported quarter.
Vodafone Ziggo revenues declined 7.1% on a reported basis and increased 0.3% on a rebased basis, year over year, to $1.13 billion, driven by an increase in mobile customers, B2B fixed customer base growth, and fixed ARPU growth. The joint venture added 37,000 mobile postpaid subscribers.
Operating Details
Adjusted EBITDA declined 48% year over year to $684.3 million in the first quarter. On a rebased basis, EBITDA increased 2.6%.
Switzerland EBITDA, on a rebased basis, was up 9.6% from the year-ago quarter.
Belgium EBITDA, on a rebased basis, dropped 1.7% year over year.
Moreover, Ireland EBITDA, on a rebased basis, increased 14.9% year over year.
Operating income was $58.8 million in the reported quarter compared with $601.2 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Liberty Global had $4.7 billion of cash, investments under SMAs and unused borrowing capacity, compared to $5.3 billion in the previous quarter.
In the first quarter, the total principal amount of debt and finance leases was $14.7 billion for continuing operations compared with $14.9 billion in the previous quarter. The average debt tenor is seven years, with approximately 94% not due until 2028 or thereafter.
Cash provided by operating activities was $605.6 million, down 31.5% year over year.
Moreover, adjusted free cash flow was $137.2 million in the first quarter compared with free cash flow of $434 million in the previous quarter and $76.1 million in the year-ago quarter.
Zacks Rank and Stocks to Consider
Currently, Liberty Global carries a Zacks Rank #3 (Hold).
LBTYA shares are down 21.1% in the year-to-date period against the Zacks Cable Television industry’s plunge of 23.6% and the Consumer Discretionary sector’s fall of 32.1%.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, Planet Fitness PLNT and SeaWorld Entertainment SEAS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Aaron’s shares are down 21.5% in the year-to-date period against the Zacks Consumer Services - Miscellaneous industry’s decline of 18.5% and the Consumer Discretionary sector’s fall of 32.1%.
Planet Fitness shares are down 25.2% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 30% and the Consumer Discretionary sector’s fall of 32.1%.
SeaWorld Entertainment shares are down 13.1% in the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of 30% and the Consumer Discretionary sector’s fall of 32.1%.
Special Report: The Top 5 IPOs for Your Portfolio
Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.
>>See Zacks’ Hottest IPOs Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Liberty Global PLC (LBTYA): Free Stock Analysis Report
SeaWorld Entertainment, Inc. (SEAS): Free Stock Analysis Report
Planet Fitness, Inc. (PLNT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, Planet Fitness PLNT and SeaWorld Entertainment SEAS, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Key drivers for this sequential valuation decline is lower value of the company’s ITV stake and an overall relatively limited investment of approximately $80 million in the reported quarter.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, Planet Fitness PLNT and SeaWorld Entertainment SEAS, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Liberty Global PLC Price, Consensus and EPS Surprise Liberty Global PLC price-consensus-eps-surprise-chart | Liberty Global PLC Quote Top-Line Details The average revenue per unit (“ARPU”) per cable customer relationship declined 4.2 % to $66.47.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, Planet Fitness PLNT and SeaWorld Entertainment SEAS, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Switzerland revenues, on a reported basis, declined 2.4% year over year to $821.4 million.
|
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Aaron’s AAN, Planet Fitness PLNT and SeaWorld Entertainment SEAS, each carrying a Zacks Rank #2 (Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report On a rebased basis, revenues increased 1.5% year over year.
|
8911.0
|
2022-05-10 00:00:00 UTC
|
Is Aaron's (AAN) a Great Value Stock Right Now?
|
AAN
|
https://www.nasdaq.com/articles/is-aarons-aan-a-great-value-stock-right-now
|
nan
|
nan
|
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.03. This compares to its industry's average Forward P/E of 11.30. Over the past year, AAN's Forward P/E has been as high as 13.21 and as low as 5.94, with a median of 8.91.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AAN has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.51.
Investors could also keep in mind BrightView (BV), an Consumer Services - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
BrightView also has a P/B ratio of 1 compared to its industry's price-to-book ratio of 5.97. Over the past year, its P/B ratio has been as high as 1.54, as low as 0.94, with a median of 1.18.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Aaron's and BrightView are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAN and BV feels like a great value stock at the moment.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
BrightView Holdings, Inc. (BV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
One company to watch right now is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. Over the past year, AAN's Forward P/E has been as high as 13.21 and as low as 5.94, with a median of 8.91.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report One company to watch right now is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report One company to watch right now is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
AAN has a P/S ratio of 0.34. One company to watch right now is Aaron's (AAN). AAN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
|
8912.0
|
2022-05-05 00:00:00 UTC
|
Zacks.com featured highlights The Aaron's, MarineMax, The Mosaic, Ryder System, and DCP Midstream
|
AAN
|
https://www.nasdaq.com/articles/zacks.com-featured-highlights-the-aarons-marinemax-the-mosaic-ryder-system-and-dcp
|
nan
|
nan
|
For Immediate Release
Chicago, IL – May 5, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, The Mosaic Company MOS, Ryder System R and DCP Midstream Partners (DCP).
5 Price-to-Sales Stocks with Scope for Handsome Returns
Investment in stocks made after an analysis of valuation metrics is usually considered one of the best practices. When considering valuation metrics, the price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy.
However, price-to-sales has emerged as a convenient tool to determine the value of stocks incurring losses or are in an early cycle of development, generating meager or no profits.
What's Price-to-Sales Ratio?
While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of the business. This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued.
A stock's price-to-sales ratio reflects how much investors pay for each dollar of revenue generated by a company.
If the price-to-sales ratio is 1, investors are paying $1 for every $1 of revenues generated by the company. So, a stock with a price-to-sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar's worth.
Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
The price-to-sales ratio is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.
However, one should keep in mind that a company with high debt and a low price-to-sales ratio is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and ultimately a higher price-to-sales ratio.
In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book, and Debt/Equity before arriving at any investment decision.
The Aaron's Company Inc., MarineMax, The Mosaic Company, Ryder System, and DCP Midstream Partners are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
Here are the five of the 29 stocks that qualified the screening:
Aaron's is a major omnichannel provider of lease-to-own ("LTO) and purchase solutions, mainly to underserved and credit-challenged customers. Through its various business segments, the company primarily deals in sales and lease ownership, apart from specialty retailing of furniture, home appliances, electronics, computers, and various other products and accessories.
This Atlanta, GA-based company's business also includes Woodhaven Furniture Industries ("Woodhaven"). Woodhaven is the manufacturer and supplier of most of the bedding and a large portion of the upholstered furniture leased and sold at Aaron's company-operated and franchised stores. The stock currently has a Value Score of A and a Zacks Rank #1.
MarineMax is a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats.
MarineMax also provides marine parts and accessories, boat covers, trailer parts, water sport accessories, high-performance accessories and a line of boating accessories. HZO currently has a Zacks Rank #1 and a Value Score of A.
Mosaic is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It was formed through the combination of the fertilizer businesses of agribusiness giant Cargill Incorporated and IMC Global Inc. Mosaic is the biggest integrated phosphate producer globally and is also among the four largest potash producers in the world.
MOS caters to customers across 40 countries. It accounts for roughly 13% of the global annual phosphate production and around 11% of global annual potash production. The company currently has a Zacks Rank #1 and a Value Score of B. Mosaic has a 3–5 year EPS growth rate of 7%. You can see the complete list of today's Zacks #1 Rank stocks here.
Florida-based Ryder System is recognized as one of the world's largest providers of integrated logistics and transportation solutions. Ryder's customers range from small businesses to large international enterprises and belong to a wide variety of industries, the most significant of which are automotive, electronics, transportation, grocery, lumber and wood products, foodservice and home furnishing.
Ryder is benefiting from improving economic and freight conditions in the United States. The stock currently has a Value Score of A and a Zacks Rank #1.
DCP Midstream is a leading energy infrastructure firm. This Fortune 500 firm has a strong and sustainable business strategy, with a diversified portfolio of gathering, logistics, marketing, and processing assets across nine states. Importantly, DCP Midstream — a master limited partnership (MLP) — was created in 2005 and has a total asset base of $17.1 billion.
DCP Midstream's business model is designed to earn stable fee-based revenues from key midstream assets that are being utilized by shippers and customers over a long period. The leading midstream energy player is banking on strong fee-based earnings from its long-term contracted business related to logistics and marketing. DCP currently has a Value Score of B and a Zacks Rank #1.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your trial to the Research Wizard today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1915206/5-price-to-sales-stocks-with-scope-for-handsome-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryder System, Inc. (R): Free Stock Analysis Report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
The Mosaic Company (MOS): Free Stock Analysis Report
MarineMax, Inc. (HZO): Free Stock Analysis Report
DCP Midstream Partners, LP (DCP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For Immediate Release Chicago, IL – May 5, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, The Mosaic Company MOS, Ryder System R and DCP Midstream Partners (DCP). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The high debt level will have to be paid off at some point, leading to further share issuance, a rise in market cap, and ultimately a higher price-to-sales ratio.
|
For Immediate Release Chicago, IL – May 5, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, The Mosaic Company MOS, Ryder System R and DCP Midstream Partners (DCP). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Aaron's Company Inc., MarineMax, The Mosaic Company, Ryder System, and DCP Midstream Partners are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
|
For Immediate Release Chicago, IL – May 5, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, The Mosaic Company MOS, Ryder System R and DCP Midstream Partners (DCP). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.
|
For Immediate Release Chicago, IL – May 5, 2022 – Stocks in this week’s article are The Aaron's Company Inc. AAN, MarineMax HZO, The Mosaic Company MOS, Ryder System R and DCP Midstream Partners (DCP). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Aaron's Company Inc., MarineMax, The Mosaic Company, Ryder System, and DCP Midstream Partners are some stocks with a low price-to-sales ratio and the potential to offer higher returns.
|
8913.0
|
2022-05-02 00:00:00 UTC
|
What Makes Aaron's (AAN) a New Strong Buy Stock
|
AAN
|
https://www.nasdaq.com/articles/what-makes-aarons-aan-a-new-strong-buy-stock
|
nan
|
nan
|
Investors might want to bet on Aaron's Company, Inc. (AAN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Aaron's is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Aaron's imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for Aaron's
This specialty retail is expected to earn $2.74 per share for the fiscal year ending December 2022, which represents a year-over-year change of -26.9%.
Analysts have been steadily raising their estimates for Aaron's. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Aaron's to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Investors might want to bet on Aaron's Company, Inc. (AAN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors.
|
Investors might want to bet on Aaron's Company, Inc. (AAN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors.
|
Investors might want to bet on Aaron's Company, Inc. (AAN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock.
|
Investors might want to bet on Aaron's Company, Inc. (AAN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors.
|
8914.0
|
2022-04-29 00:00:00 UTC
|
Can Aaron's (AAN) Climb 54% to Reach the Level Wall Street Analysts Expect?
|
AAN
|
https://www.nasdaq.com/articles/can-aarons-aan-climb-54-to-reach-the-level-wall-street-analysts-expect
|
nan
|
nan
|
Shares of Aaron's Company, Inc. (AAN) have gained 2.9% over the past four weeks to close the last trading session at $20.66, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $31.80 indicates a potential upside of 53.9%.
The average comprises five short-term price targets ranging from a low of $27 to a high of $37, with a standard deviation of $4.87. While the lowest estimate indicates an increase of 30.7% from the current price level, the most optimistic estimate points to a 79.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for AAN, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why AAN Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 9.8% over the past month, as five estimates have gone higher compared to no negative revision.
Moreover, AAN currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, while the consensus price target may not be a reliable indicator of how much AAN could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares of Aaron's Company, Inc. (AAN) have gained 2.9% over the past four weeks to close the last trading session at $20.66, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for AAN, an impressive average price target is not the only indicator of a potential upside. Why AAN Could Witness a Solid Upside Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock.
|
You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much AAN could gain, the direction of price movement it implies does appear to be a good guide. Shares of Aaron's Company, Inc. (AAN) have gained 2.9% over the past four weeks to close the last trading session at $20.66, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for AAN, an impressive average price target is not the only indicator of a potential upside.
|
You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much AAN could gain, the direction of price movement it implies does appear to be a good guide. Shares of Aaron's Company, Inc. (AAN) have gained 2.9% over the past four weeks to close the last trading session at $20.66, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for AAN, an impressive average price target is not the only indicator of a potential upside.
|
You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, while the consensus price target may not be a reliable indicator of how much AAN could gain, the direction of price movement it implies does appear to be a good guide. Shares of Aaron's Company, Inc. (AAN) have gained 2.9% over the past four weeks to close the last trading session at $20.66, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. But, for AAN, an impressive average price target is not the only indicator of a potential upside.
|
8915.0
|
2022-04-27 00:00:00 UTC
|
Brand Strength Aids Aaron's (AAN) Amid Supply-Chain Woes
|
AAN
|
https://www.nasdaq.com/articles/brand-strength-aids-aarons-aan-amid-supply-chain-woes
|
nan
|
nan
|
The Aaron's Company, Inc. AAN has been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. Also, it witnessed accretive gains from the acquisition of BrandsMart.
Notably, the company opened 19 GenNext locations in first-quarter 2022. This, along with the 116 existing stores at the beginning of the quarter, accounted for 13.2% of lease and retail revenues in the first quarter. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Earlier, it anticipated 100 new GenNext locations in 2022. But due to global supply-chain challenges, the remaining 20 stores will be completed in 2023.
In first-quarter 2022, the bottom line beat the Zacks Consensus Estimate, while the top line lagged the same. Both metrics declined year over year due to the ongoing inflationary pressures, uncertainty related to geopolitical conflict and supply-chain challenges. Consequently, shares of AAN have lost 4.5% in the past three months compared with the industry’s decline of 0.8%.
Image Source: Zacks Investment Research
However, this Zacks Rank #3 (Hold) company remains optimistic about solid revenue and double-digit adjusted EBITDA growth on an annual basis in the next five years. Driven by these factors, AAN raised the 2022 view, including the BrandsMart buyout completed on Apr 1, 2022.
Let’s Delve Deeper
Aaron's delivered adjusted earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents. However, the bottom line declined 29.8% year over year from $1.24 per share reported in the prior-year quarter. On a GAAP basis, the company recorded earnings of 68 cents per share, indicating a decrease from $1.04 reported in the year-ago quarter.
Consolidated revenues fell 5.2% to $456.1 million and missed the Zacks Consensus Estimate of $473 million. This is mainly due to reduced lease revenues stemming from expected normalization in the lease renewal rate and a decline in early purchase options. On the flip side, a larger lease portfolio remained an upside.
Same-store revenues fell 4.3% year over year in the first quarter due to expected normalization in the lease renewal rate and a decline in early purchase options, which somewhat offset the larger lease portfolio. However, same-store revenues rose 9.6% on a two-year basis. E-commerce lease revenues were up 3.9%, accounting for 15.4% of the total revenues.
Breaking up the components of consolidated revenues, we note that lease and retail revenues declined 5% in the reported quarter to $421.9 million. Non-retail sales, which mainly include merchandise sales to franchisees, fell 7.1% year over year to $27.8 million. Franchise royalties and fees in the quarter slumped 9.8% to $6.3 million from the year-ago quarter.
Aaron’s adjusted EBITDA declined 25.9% year over year to $54.7 million. Adjusted EBITDA margin contracted 340 basis points (bps) to 12% in the reported quarter due to an expected reduction in lease renewal rates and potential growth in write-offs, which was partly offset by lower personnel and operating costs.
Financial Position
The company ended the quarter with cash and cash equivalents of $13.5 million, and shareholders’ equity of $730.9 million. In the reported quarter, it generated cash from operations of $29.1 million. Capital expenditure is expected to be $100-$125 million for 2022. AAN expects a free cash flow of $45-$55 million for 2022.
In the reported quarter, it bought back 261,924 shares of Aaron's common stock worth $5.7 million. AAN’s board raised the share repurchase authorization on Mar 2 from $150-$250 million, which will be valid till Dec 31, 2024. As of Mar 31, 2022, the company has shares worth $141.2 million remaining under its share repurchase program. The board paid out a quarterly dividend of 11.25 cents per share on Apr 5.
The Aaron's Company, Inc. Price, Consensus and EPS Surprise
The Aaron's Company, Inc. price-consensus-eps-surprise-chart | The Aaron's Company, Inc. Quote
Outlook
In a bid to reflect gains from the BrandsMart buyout, management revised its 2022 view. The company expects revenues $2.32-$2.39 billion, up from the earlier mentioned $1.775-$1.825 billion. Adjusted EBITDA is likely to be $200-$215 million, which compares unfavorably with the prior stated $180-$190 million.
It also envisions adjusted earnings of $2.65-$2.90. Excluding the BrandsMart acquisition, the previous guidance remains valid.
Stocks to Consider
Some better-ranked stocks from the same industry are Delta Apparel DLA, Oxford Industries OXM and GIII Apparel Group GIII.
GIII Apparel, a manufacturer, designer and distributor of apparel and accessories, presently sports a Zacks Rank #1 (Strong Buy). GIL has a trailing four-quarter earnings surprise of 160.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year sales and earnings suggests growth of 8.7% and 5.2% from the year-ago period’s reported numbers, respectively.
Oxford Industries, which is involved in designing, sourcing, marketing and distributing products bearing the trademarks of its owned and licensed brands, currently flaunts a Zacks Rank #1. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers.
Delta Apparel, a manufacturer of knitwear products, currently has a Zacks Rank #2 (Buy). DLA has a trailing four-quarter earnings surprise of 95.5%, on average.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report
Oxford Industries, Inc. (OXM): Free Stock Analysis Report
Delta Apparel, Inc. (DLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN has been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Consequently, shares of AAN have lost 4.5% in the past three months compared with the industry’s decline of 0.8%.
|
The Aaron's Company, Inc. AAN has been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Consequently, shares of AAN have lost 4.5% in the past three months compared with the industry’s decline of 0.8%.
|
The Aaron's Company, Inc. AAN has been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Consequently, shares of AAN have lost 4.5% in the past three months compared with the industry’s decline of 0.8%.
|
The Aaron's Company, Inc. AAN has been gaining from a robust lease-to-own portfolio, strength in its core businesses, solid e-commerce business and a sturdy performance in GenNext stores. As part of its GenNext strategy, AAN expects to open more than 80 additional GenNext stores in 2022. Consequently, shares of AAN have lost 4.5% in the past three months compared with the industry’s decline of 0.8%.
|
8916.0
|
2022-04-26 00:00:00 UTC
|
Mohawk (MHK) to Report Q1 Earnings: High Inflation to Ail
|
AAN
|
https://www.nasdaq.com/articles/mohawk-mhk-to-report-q1-earnings%3A-high-inflation-to-ail
|
nan
|
nan
|
Mohawk Industries, Inc. MHK is slated to report first-quarter 2022 results on Apr 28, after market close.
In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 1.7% and 0.9%, respectively. The metrics increased 16.7% and 4.5% year over year, respectively.
Markedly, MHK’s earnings surpassed expectations in all the trailing four quarters, with the average being 11.6%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has decreased to $2.92 per share from $2.93 over the past 30 days. Nonetheless, the estimated figure indicates 16.3% growth from the year-ago earnings of $3.49 per share. The consensus mark for revenues is $2.91 billion, suggesting a 9.1% year-over-year improvement.
Mohawk Industries, Inc. Price and EPS Surprise
Mohawk Industries, Inc. price-eps-surprise | Mohawk Industries, Inc. Quote
Factors to Note
MHK is expected to have registered improved sales during first-quarter 2022 owing to robust demand trends. New home construction and improvement of the commercial space are likely to have benefited its performance in the to-be-reported quarter.
Owing to higher market demand and increased sales in residential remodeling and new construction markets, Mohawk's U.S. ceramic business has been witnessing improved customer traffic. The company expects the expansion of ceramic capacities in the first quarter and beyond. The consensus mark for revenues from the Global Ceramic unit is pegged at $994 million, implying a 6.9% year-over-year increase.
The Flooring NA business has also been seeing strong growth in the residential channel. Its commercial channel has been recovering and seeing more investments in new projects. The consensus estimate for the Flooring NA segment’s net sales is pegged at $1,060 million, indicating an improvement of 9.4% from the year-ago reported figure.
Within Flooring ROW, MHK has been witnessing strong demand in most categories and geographies. Especially, the insulation business has been experiencing strong demand backed by government incentives for energy savings. The consensus mark for revenues from Flooring ROW is pegged at $876 million, suggesting a 13.8% improvement from the year-ago quarter.
Meanwhile, Mohawk has been witnessing inflation in most of the product categories and hence raising prices. Also, the availability of materials, labor and transportation has been challenging, thereby inflating costs. Especially, tight chemical supplies have been hurting the output of LVT, carpet, laminate and board panels. These inflationary pressures are likely to weigh on first-quarter bottom-line results.
During fourth-quarter 2021 earnings discussion, management noted that European natural gas prices remained most volatile, substantially increasing energy and material costs. Therefore, European businesses are temporarily challenged. For first-quarter 2022, record-high natural gas prices are likely to increase net costs by $40-$45 million in the European ceramic business.
The consensus mark for adjusted operating income from Global Ceramic is $54 million, indicating a 39.3% decrease from $89 million reported a year ago. The same for Flooring NA units is pegged at $80 million, suggesting a decline of 11.1% from $90 million in the prior year. The consensus estimate for Flooring ROW business’ adjusted operating income is $137 million, which suggests a fall of 14.9% from $161 million a year ago.
Given the current situation, Mohawk expects first-quarter adjusted earnings to be $2.90-$3.00, excluding restructuring charges, indicating a decline from the year-ago figure of $3.49.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mohawk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, it has a Zacks Rank #4 (Sell) and an Earnings ESP of -5.35%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat for the to-be-reported quarter:
Bright Horizons Family Solutions Inc. BFAM has an Earnings ESP of +1.82% and a Zacks Rank #3.
In the trailing four quarters, BFAM’s earnings topped the consensus mark in all the trailing four quarters, with the average being 53.7%.
The Aaron's Company, Inc. AAN has an Earnings ESP of +7.99% and a Zacks Rank #3.
Over the trailing four quarters, AAN’s earnings topped the consensus mark in all the trailing four quarters, with the average being 76.1%.
Callaway Golf Company ELY has an Earnings ESP of +4.35% and a Zacks Rank #3.
In the last four quarters, ELY’s earnings topped the consensus mark in all the trailing four quarters, with the average being 1,047.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Mohawk Industries, Inc. (MHK): Free Stock Analysis Report
Bright Horizons Family Solutions Inc. (BFAM): Free Stock Analysis Report
Callaway Golf Company (ELY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN has an Earnings ESP of +7.99% and a Zacks Rank #3. Over the trailing four quarters, AAN’s earnings topped the consensus mark in all the trailing four quarters, with the average being 76.1%. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
|
The Aaron's Company, Inc. AAN has an Earnings ESP of +7.99% and a Zacks Rank #3. Over the trailing four quarters, AAN’s earnings topped the consensus mark in all the trailing four quarters, with the average being 76.1%. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
|
Over the trailing four quarters, AAN’s earnings topped the consensus mark in all the trailing four quarters, with the average being 76.1%. The Aaron's Company, Inc. AAN has an Earnings ESP of +7.99% and a Zacks Rank #3. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
|
The Aaron's Company, Inc. AAN has an Earnings ESP of +7.99% and a Zacks Rank #3. Over the trailing four quarters, AAN’s earnings topped the consensus mark in all the trailing four quarters, with the average being 76.1%. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
|
8917.0
|
2022-04-25 00:00:00 UTC
|
Aaron's Company, Inc. (AAN) Q1 Earnings Surpass Estimates
|
AAN
|
https://www.nasdaq.com/articles/aarons-company-inc.-aan-q1-earnings-surpass-estimates
|
nan
|
nan
|
Aaron's Company, Inc. (AAN) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $1.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 27.94%. A quarter ago, it was expected that this specialty retail would post earnings of $0.37 per share when it actually produced earnings of $0.60, delivering a surprise of 62.16%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Aaron's, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $456.08 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 3.51%. This compares to year-ago revenues of $481.05 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Aaron's shares have lost about 16.9% since the beginning of the year versus the S&P 500's decline of -10.4%.
What's Next for Aaron's?
While Aaron's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Aaron's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $454.15 million in revenues for the coming quarter and $2.49 on $1.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Services - Miscellaneous is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, BJ's Wholesale Club (BJ), is yet to report results for the quarter ended April 2022.
This wholesale membership warehouse operator is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BJ's Wholesale Club's revenues are expected to be $4.16 billion, up 7.6% from the year-ago quarter.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's Company, Inc. (AAN) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.68 per share. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook.
|
Aaron's Company, Inc. (AAN) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.68 per share. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Aaron's, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $456.08 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 3.51%.
|
Aaron's Company, Inc. (AAN) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.68 per share. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Aaron's, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $456.08 million for the quarter ended March 2022, missing the Zacks Consensus Estimate by 3.51%.
|
Aaron's Company, Inc. (AAN) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.68 per share. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
|
8918.0
|
2022-04-22 00:00:00 UTC
|
Why Aaron's (AAN) Might Surprise This Earnings Season
|
AAN
|
https://www.nasdaq.com/articles/why-aarons-aan-might-surprise-this-earnings-season
|
nan
|
nan
|
Investors are always looking for stocks that are poised to beat at earnings season and The Aaron's Company, Inc. AAN may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Aaron’s is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAN in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 73 cents per share for AAN, compared to a broader Zacks Consensus Estimate of 68 cents per share. This suggests that analysts have very recently bumped up their estimates for AAN, giving the stock a Zacks Earnings ESP of +7.99% heading into earnings season.
The Aaron's Company, Inc. Price and EPS Surprise
The Aaron's Company, Inc. price-eps-surprise | The Aaron's Company, Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Aaron’s, and that a beat might be in the cards for the upcoming report.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAN in this report. Investors are always looking for stocks that are poised to beat at earnings season and The Aaron's Company, Inc. AAN may be one such company. In fact, the Most Accurate Estimate for the current quarter is currently at 73 cents per share for AAN, compared to a broader Zacks Consensus Estimate of 68 cents per share.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and The Aaron's Company, Inc. AAN may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAN in this report.
|
Investors are always looking for stocks that are poised to beat at earnings season and The Aaron's Company, Inc. AAN may be one such company. This suggests that analysts have very recently bumped up their estimates for AAN, giving the stock a Zacks Earnings ESP of +7.99% heading into earnings season. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAN in this report.
|
Investors are always looking for stocks that are poised to beat at earnings season and The Aaron's Company, Inc. AAN may be one such company. Given that AAN has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
|
8919.0
|
2022-04-22 00:00:00 UTC
|
Things You Need to Know Before Aaron's (AAN) Q1 Earnings
|
AAN
|
https://www.nasdaq.com/articles/things-you-need-to-know-before-aarons-aan-q1-earnings
|
nan
|
nan
|
The Aaron's Company, Inc. AAN is scheduled to report first-quarter 2022 results on Apr 26. The global consumer products company is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, which indicates a decline of 45.2% from the year-ago quarter’s reported figure. The consensus mark moved down 2.9% in the past seven days. The consensus mark for revenues is pegged at $472.7 million, indicating a decline of 1.7% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 62.2%. It delivered an earnings surprise of 76.1%, on average, in the trailing four quarters.
The Aaron's Company, Inc. Price and EPS Surprise
The Aaron's Company, Inc. price-eps-surprise | The Aaron's Company, Inc. Quote
Factors to Note
Aaron’s has been benefiting from a robust lease portfolio and a solid e-commerce business. Increased investments in digital marketing, improved shopping experience, same-day and next-day delivery facilities, personalization of products, a broader product assortment, and its express delivery program remain key growth drivers. These upsides are likely to have aided the top line in the to-be-reported quarter.
Management has been on track with its GenNext real estate strategy, which has been performing well. A higher number of GenNext stores along with significant cost synergies related to the BrandsMart buyout are expected to have contributed to its first-quarter performance.
However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. Also, lower customer payment activity due to reduced government stimulus, along with higher wages for in-store team members and elevated shipping costs, is likely to have been concerning.
Zacks Model
Our proven model predicts an earnings beat for Aaron's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aaron's has a Zacks Rank #3 and an Earnings ESP of +7.99%.
Other Stocks With Favorable Combination
Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season:
Gildan Activewear GIL has an Earnings ESP of +10.20% and it currently sports a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings moved up by a penny in the past 30 days to 49 cents per share, suggesting 2.1% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $652.2 million, which suggests a rise of 10.6% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 66.6%, on average, in the trailing four quarters.
Pool Corporation POOL has an Earnings ESP of +2.53% and a Zacks Rank of 2 at present. The company is likely to register an increase in the bottom line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings moved up 0.7% to $3.06 per share in the past 30 days, suggesting an increase of 26.5% from the year-ago quarter’s reported number.
Pool’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.25 billion, which suggests a rise of 18% from the figure reported in the prior-year quarter. POOL has delivered an earnings beat of 38.4%, on average, in the trailing four quarters.
Charter Communications CHTR currently has an Earnings ESP of +0.60% and a Zacks Rank #3. CHTR is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.2 billion, indicating an improvement of 5.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Charter Communications’ bottom line has moved down 0.9% in the past 30 days to $6.52 per share. However, the metric reflects growth of 58.6% from $4.11 reported in the year-ago quarter. CHTR has delivered an earnings beat of 12%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Pool Corporation (POOL): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
Gildan Activewear, Inc. (GIL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN is scheduled to report first-quarter 2022 results on Apr 26. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, which indicates a decline of 45.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report first-quarter 2022 results on Apr 26. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, which indicates a decline of 45.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report first-quarter 2022 results on Apr 26. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, which indicates a decline of 45.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report first-quarter 2022 results on Apr 26. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report In the last reported quarter, the company delivered an earnings surprise of 62.2%.
|
8920.0
|
2022-04-04 00:00:00 UTC
|
Aaron's (AAN) BrandsMart Buyout to Boost Sales & Customer Base
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-brandsmart-buyout-to-boost-sales-customer-base
|
nan
|
nan
|
The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer. Aaron’s acquired BrandsMart for $230 million in cash.
This buyout facilitates Aaron’s offer its customers high-quality furniture, appliances, electronics and other home goods on affordable lease and retail purchase options. This will strengthen AAN’s market position and help expand the customer base.
Management highlighted that the consolidated business will generate solid revenues and a double-digit annual adjusted EBITDA growth in five years and beyond. With respect to the completion of the BrandsMart buyout, Aaron's replaced the $250-million unsecured revolving credit facility with a new one. The latest credit facility comprises an unsecured $375 million revolving credit facility and a five-year $175 million unsecured term loan.
On Feb 23, Aaron’s informed that it inked a deal to buy BrandsMart. Management had then anticipated total annual revenues of more than $3 billion and an adjusted EBITDA of above $300 million from this transaction by 2026. Founded in 1977, BrandsMart delivered revenues of $757 million and an adjusted EBITDA of $46 million during the 12 months ended Dec 25, 2021.
What’s More?
Aaron’s is consistently witnessing strength in its e-commerce platform even after stores reopened. In fourth-quarter 2021, e-commerce lease revenues were up 13%, accounting for 14.6% of the total revenues. The uptick can be attributed to increased investments in digital marketing, an improved shopping experience, same-day and next-day delivery facilities, personalization of products and a broader assortment, including the latest product categories. Its express delivery program also bodes well.
Aaron’s GenNext real-estate strategy also appears encouraging. These GenNext concept stores come with larger, brighter and easier-to-navigate main showrooms offering new furniture, appliances as well as electronics. The stores also feature an expanded assortment and payment methods, and enhanced shopping experience.
This currently Zacks Rank #3 (Hold) stock has gained 3.2% in the past six months against the industry’s 6.1% dip.
Eye These Solid Picks
Some better-ranked stocks in the broader Consumer Discretionary space are Gildan Activewear GIL, Delta Apparel DLA and Columbia Sportswear COLM.
Gildan Activewear flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gildan Activewear’s 2022 sales and earnings per share (EPS) suggests growth of 8.9% and 3.3%, respectively, from the corresponding year-ago reported figures. GIL has a trailing four-quarter earnings surprise of 66.6%, on average.
Delta Apparel currently carries a Zacks Rank #2 (Buy). DLA has a trailing four-quarter earnings surprise of 21.3%, on average.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and EPS suggests growth of 12.3% and 19.1%, respectively, from the corresponding year-ago reported numbers.
Columbia Sportswear currently has a Zacks Rank of 2. COLM has a trailing four-quarter earnings surprise of 203.3%, on average.
The Zacks Consensus Estimate for Columbia Sportswear's current financial-year sales suggests growth of 17.7% while the same for EPS indicates a rise of 8.1% from the respective year-ago reported figures.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
Columbia Sportswear Company (COLM): Free Stock Analysis Report
Gildan Activewear, Inc. (GIL): Free Stock Analysis Report
Delta Apparel, Inc. (DLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer. This will strengthen AAN’s market position and help expand the customer base.
|
The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer. This will strengthen AAN’s market position and help expand the customer base.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer.
|
The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer. This will strengthen AAN’s market position and help expand the customer base.
|
8921.0
|
2022-03-25 00:00:00 UTC
|
Why Is Aaron's (AAN) Up 5.8% Since Last Earnings Report?
|
AAN
|
https://www.nasdaq.com/articles/why-is-aarons-aan-up-5.8-since-last-earnings-report
|
nan
|
nan
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aaron's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Aaron's Q4 Earnings & Revenues Beat, Soft View Hurts
Aaron's reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. A robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in GenNext stores aided the quarterly results. The company remains on track with its GenNext real estate strategy, which is performing well. Notably, Aaron’s opened 30 GenNext stores in the fourth quarter. The company expects to open 120 such stores by 2022.
Management noted that it entered a deal to acquire appliance and electronics retailer, BrandsMart. With the buyout, Aaron’s will be able to offer high-quality furniture, appliances, electronics, and other home goods on affordable lease and retail purchase options to its customers. The move is also expected to strengthen AAN’s market position and help expand the customer base.
Q4 Highlights
Aaron's delivered adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. However, the bottom line declined 24.1% year over year from 79 cents per share reported in the prior-year quarter. On a GAAP basis, the company recorded earnings of 50 cents per share, indicating a sharp rise from 8 cents reported in the year-ago quarter.
Consolidated revenues rose 3.4% to $444.8 million and beat the Zacks Consensus Estimate of $426 million. The uptick is mainly due to improved quality and the size of its lease portfolio, which somewhat offset reduced customer payment activities, and the impacts of the net closure of 72 franchised stores in 15 months ended Dec 31, 2021.
Same-store revenues rose 4.8% in the fourth quarter, driven by improved lease portfolio size, which somewhat offset reduced lease renewal rates. E-commerce lease revenues were up 13%, accounting for 14.6% of total revenues.
Breaking up the components of consolidated revenues, we note that lease and retail revenues grew 4.6% in the reported quarter to $404.8 million. Non-retail sales, which mainly include merchandise sales to franchisees, rose 2.4% year over year to $33.7 million. Franchise royalties and fees in the quarter slumped 39.4% to $6.3 million from the year-ago quarter.
Aaron’s franchisee revenues decreased 18.3% year over year to $80 million on reduced franchised locations. Meanwhile, same-store revenues for franchised stores grew 4.3% year over year. Revenues and customers of franchisees are not deemed as revenues and customers of the company.
Aaron’s adjusted EBITDA declined 23% year over year to $41.3 million. Adjusted EBITDA margin contracted 320 basis points (bps) to 9.3% in the reported quarter due to reduced lease renewal rates, a rise in operating costs and potential growth in write-offs.
Financial Position
The company ended the quarter with cash and cash equivalents of $22.8 million, and shareholders’ equity of $718.2 million. In 2021, it generated cash from operations of $136 million. Capital expenditure is expected to be $100-$125 million for 2022.
In the reported quarter, the company bought back 820,338 shares of Aaron's common stock worth $20.7 million. In 2021, it repurchased 3,571,812 shares for $103.1 million. Currently, the company has shares worth $46.9 million remaining to be bought back under its existing share repurchase program of $150 million.
The board also approved a quarterly dividend of 10 cents per share, which was paid out on Jan 4. On Feb 21, 2022, AAN approved a dividend hike of 12.5%. It will now pay a dividend of 11.25 cents on Apr 5 of shareholders’ records as of Mar 17.
Outlook
Despite the solid results, management provided a drab 2022 view. For 2022, the company anticipates revenues of $1.775-$1.825 billion, which compares unfavorably with $1,845.5 million reported in 2021. Same-store revenues are forecast to decline 3-1%. Adjusted EBITDA is likely to be $180-$190 million. It also expects a free cash flow of $45-$50 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -7.18% due to these changes.
VGM Scores
Currently, Aaron's has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Aaron's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
A month has gone by since the last earnings report for Aaron's Company, Inc. (AAN). The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
8922.0
|
2022-02-24 00:00:00 UTC
|
Aaron's (AAN) Q4 Earnings & Revenues Beat, Soft View Hurts
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-q4-earnings-revenues-beat-soft-view-hurts
|
nan
|
nan
|
The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate.
A robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in GenNext stores aided the quarterly results. The company remains on track with its GenNext real estate strategy, which is performing well. Notably, Aaron’s opened 30 GenNext stores in the fourth quarter. The company expects to open 120 such stores by 2022.
Management noted that it entered a deal to acquire appliance and electronics retailer, BrandsMart. With the buyout, Aaron’s will be able to offer high-quality furniture, appliances, electronics, and other home goods on affordable lease and retail purchase options to its customers. The move is also expected to strengthen AAN’s market position and help expand the customer base.
However, shares of Aaron’s fell more than 5% on Feb 23, which might be attributable to the bleak 2022 view stemming from the ongoing supply-chain disruptions. We also note that shares of the Zacks Rank #4 (Sell) company have lost 19.3% in the past three months compared with the industry’s decline of 13%.
Image Source: Zacks Investment Research
Q4 Highlights
Aaron's delivered adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. However, the bottom line declined 24.1% year over year from 79 cents per share reported in the prior-year quarter. On a GAAP basis, the company recorded earnings of 50 cents per share, indicating a sharp rise from 8 cents reported in the year-ago quarter.
Consolidated revenues rose 3.4% to $444.8 million and beat the Zacks Consensus Estimate of $426 million. The uptick is mainly due to improved quality and the size of its lease portfolio, which somewhat offset reduced customer payment activities, and the impacts of the net closure of 72 franchised stores in 15 months ended Dec 31, 2021.
Same-store revenues rose 4.8% in the fourth quarter, driven by improved lease portfolio size, which somewhat offset reduced lease renewal rates. E-commerce lease revenues were up 13%, accounting for 14.6% of total revenues.
Breaking up the components of consolidated revenues, we note that lease and retail revenues grew 4.6% in the reported quarter to $404.8 million. Non-retail sales, which mainly include merchandise sales to franchisees, rose 2.4% year over year to $33.7 million. Franchise royalties and fees in the quarter slumped 39.4% to $6.3 million from the year-ago quarter.
Aaron’s franchisee revenues decreased 18.3% year over year to $80 million on reduced franchised locations. Meanwhile, same-store revenues for franchised stores grew 4.3% year over year. Revenues and customers of franchisees are not deemed as revenues and customers of the company.
Aaron’s adjusted EBITDA declined 23% year over year to $41.3 million. Adjusted EBITDA margin contracted 320 basis points (bps) to 9.3% in the reported quarter due to reduced lease renewal rates, a rise in operating costs and potential growth in write-offs.
Financial Position
The company ended the quarter with cash and cash equivalents of $22.8 million, and shareholders’ equity of $718.2 million. In 2021, it generated cash from operations of $136 million. Capital expenditure is expected to be $100-$125 million for 2022.
In the reported quarter, the company bought back 820,338 shares of Aaron's common stock worth $20.7 million. In 2021, it repurchased 3,571,812 shares for $103.1 million. Currently, the company has shares worth $46.9 million remaining to be bought back under its existing share repurchase program of $150 million.
The board also approved a quarterly dividend of 10 cents per share, which was paid out on Jan 4. On Feb 21, 2022, AAN approved a dividend hike of 12.5%. It will now pay a dividend of 11.25 cents on Apr 5 of shareholders’ records as of Mar 17.
The Aaron's Company, Inc. Price, Consensus and EPS Surprise
The Aaron's Company, Inc. price-consensus-eps-surprise-chart | The Aaron's Company, Inc. Quote
Outlook
Despite the solid results, management provided a drab 2022 view. For 2022, the company anticipates revenues of $1.775-$1.825 billion, which compares unfavorably with $1,845.5 million reported in 2021. Same-store revenues are forecast to decline 3-1%. Adjusted EBITDA is likely to be $180-$190 million. It also expects a free cash flow of $45-$50 million.
Stocks to Consider
Some better-ranked stocks from the Consumer Discretionary sector are Delta Apparel DLA, Oxford Industries OXM and World Wrestling Entertainment WWE.
Delta Apparel currently flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 95.5% on average. The DLA stock has gained 9.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.
World Wrestling presently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 75.5%, on average. Shares of WWE have rallied 21.6% in a year.
The Zacks Consensus Estimate for World Wrestling’s current financial-year sales and earnings suggests growth of 16.5% and 11.3% from the year-ago period’s reported numbers, respectively.
Oxford Industries currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 96.7%, on average. Shares of OXM have gained 15.1% in the past year.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
World Wrestling Entertainment, Inc. (WWE): Free Stock Analysis Report
Oxford Industries, Inc. (OXM): Free Stock Analysis Report
Delta Apparel, Inc. (DLA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. The move is also expected to strengthen AAN’s market position and help expand the customer base. On Feb 21, 2022, AAN approved a dividend hike of 12.5%.
|
8923.0
|
2022-02-23 00:00:00 UTC
|
Will Insiders Be Tempted To Buy More AAN At The New 52-Week Low?
|
AAN
|
https://www.nasdaq.com/articles/will-insiders-be-tempted-to-buy-more-aan-at-the-new-52-week-low
|
nan
|
nan
|
In trading on Wednesday, shares of Aaron's Co Inc (Symbol: AAN) touched a new 52-week low of $19.58/share. That's a $17.91 share price drop, or -47.77% decline from the 52-week high of $37.49 set back on 06/09/2021. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAN that means the stock would have to gain 91.47% to get back to the 52-week high. For a move like that, Aaron's Co Inc would need fundamental strength at the business level.
Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as AAN shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, AAN has seen 3 different instances of insiders buying over the past six months.
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
11/04/2021 Kelly Hefner Barrett Director 4,000 $25.63 $102,520.00
11/16/2021 Marvonia P. Moore Director 1,963 $25.73 $50,507.99
11/30/2021 Hubert L. Harris Jr. Director 1,000 $22.40 $22,400.00
In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where AAN has traded over the past year, with the 50-day and 200-day moving averages included.
Time will tell whether the insider purchases foretell a future rebound for AAN shares, which are presently showing a last trade of $20.07/share, slightly above the new 52-week low.
Ten Bargains You Can Buy Cheaper Than The Insiders Did »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The chart below shows where AAN has traded over the past year, with the 50-day and 200-day moving averages included. Time will tell whether the insider purchases foretell a future rebound for AAN shares, which are presently showing a last trade of $20.07/share, slightly above the new 52-week low. In trading on Wednesday, shares of Aaron's Co Inc (Symbol: AAN) touched a new 52-week low of $19.58/share.
|
Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAN that means the stock would have to gain 91.47% to get back to the 52-week high. In trading on Wednesday, shares of Aaron's Co Inc (Symbol: AAN) touched a new 52-week low of $19.58/share. So let's take a look to see whether any company insiders were taking the other side of the trade as AAN shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period.
|
Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAN that means the stock would have to gain 91.47% to get back to the 52-week high. So let's take a look to see whether any company insiders were taking the other side of the trade as AAN shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. In trading on Wednesday, shares of Aaron's Co Inc (Symbol: AAN) touched a new 52-week low of $19.58/share.
|
Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAN that means the stock would have to gain 91.47% to get back to the 52-week high. So let's take a look to see whether any company insiders were taking the other side of the trade as AAN shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. The chart below shows where AAN has traded over the past year, with the 50-day and 200-day moving averages included.
|
8924.0
|
2022-02-18 00:00:00 UTC
|
Factors Likely to Decide Aaron's (AAN) Fate in Q4 Earnings
|
AAN
|
https://www.nasdaq.com/articles/factors-likely-to-decide-aarons-aan-fate-in-q4-earnings
|
nan
|
nan
|
The Aaron's Company, Inc. AAN is scheduled to report fourth-quarter 2021 results on Feb 24. The global consumer products company is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure. The consensus mark moved down 2.6% in the past 30 days. The consensus mark for revenues is pegged at $425.9 million, indicating a decline of 1% from the figure reported in the year-ago quarter.
However, the Zacks Consensus Estimate for 2021’s sales and earnings per share suggests growth of 5.3% and 16.6%, respectively, from the year-ago period's reported numbers.
In the last reported quarter, the company delivered an earnings surprise of 56.6%. It delivered an earnings surprise of 60.8%, on average, in the trailing four quarters.
The Aaron's Company, Inc. Price and EPS Surprise
The Aaron's Company, Inc. price-eps-surprise | The Aaron's Company, Inc. Quote
Factors to Note
Aaron’s has been benefiting from strength in the direct-to-consumer lease-to-own market and a robust lease portfolio. An increased focus on advanced technology, digital payment facilities, and improved in-store and online shopping experiences are likely to have boosted the top-line performance in the to-be-reported quarter.
Notably, management, on its last reported quarter’searnings call anticipated revenues of $1.82-$1.83 billion for the fourth quarter, up from the earlier mentioned $1.775-$1.8 billion. Same-store revenues are forecast to grow 7.5-8.5% compared with 6-8% growth stated previously.
The company has been gaining from the e-commerce business, driven by increased investments in digital marketing, improved shopping experience, same-day and next-day delivery facilities, personalization of products, and a broader assortment, including the latest product categories. Its express delivery program also bodes well.
Management has been on track with its GenNext real estate strategy, which has been performing well. A higher number of GenNext stores, stemming from increased investment, is expected to have contributed to its fourth-quarter performance.
However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. It has also been witnessing lower customer payment activity due to reduced government stimulus. Although fourth-quarter 2021 customer lease payment activity is likely to have been above the pre-pandemic level, it is anticipated to be lower than fourth-quarter 2020.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for Aaron's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aaron's has a Zacks Rank #4 (Sell) and an Earnings ESP of +5.41%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Gildan Activewear GIL currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings moved 3.6% to 58 cents per share, suggesting 28.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 85%, on average, in the trailing four quarters.
PVH Corp PVH has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.98 per share in the past 30 days, suggesting a surge of 621.1% from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.39 billion, which suggests a rise of 14.4% from the figure reported in the prior-year quarter. PVH has delivered an earnings beat of 72.3%, on average, in the trailing four quarters.
Vail Resorts MTN currently has an Earnings ESP of +5.48% and a Zacks Rank #3. MTN is anticipated to register top-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $195.1 million, indicating an improvement of 48.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vail Resorts' bottom line has improved significantly in the past 30 days to a loss of $3.66 per share. However, the estimate suggests a wider loss from the loss per share of $3.63 reported in the year-ago quarter. MTN has delivered an earnings beat of 17.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
PVH Corp. (PVH): Free Stock Analysis Report
Gildan Activewear, Inc. (GIL): Free Stock Analysis Report
Vail Resorts, Inc. (MTN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. AAN is scheduled to report fourth-quarter 2021 results on Feb 24. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report fourth-quarter 2021 results on Feb 24. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report fourth-quarter 2021 results on Feb 24. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure.
|
The Aaron's Company, Inc. AAN is scheduled to report fourth-quarter 2021 results on Feb 24. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report In the last reported quarter, the company delivered an earnings surprise of 56.6%.
|
8925.0
|
2022-02-01 00:00:00 UTC
|
7 Alternative Financing Stocks to Buy for the New Normal
|
AAN
|
https://www.nasdaq.com/articles/7-alternative-financing-stocks-to-buy-for-the-new-normal
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Following a traumatic event such as the coronavirus pandemic, it’s normal to consider circumstances only as they relate to the crisis at hand. However, if we think back to a time before quarantines and mitigation protocols became a thing, the mainstream media was significantly concerned about a global recession. And that brings to mind an overlooked asset class: alternative financing stocks to buy.
Heading into 2020, you’ll recall that one of the biggest headwinds that sent jitters down Wall Street’s spine was the bitter U.S.-China trade war. At the time, former President Trump was putting the heat on the Chinese government for intellectual property theft, boding poorly for stable economic relations across the globe. Plus analysts were worried about excessive central bank stimulus, which in a roundabout manner impacted alternative financing stocks.
According to Jefferies analyst John Hecht back in September 2019, worsening household finances would be a key factor to watch if the economy enters a recession, imposing hardship on families seeking to manage their expenses. Therefore, alternative financing stocks or securities tied to rent-to-own companies or pawnshops could benefit. Of course, financial engineering by central banks is designed to stop this kind of downward spiral from happening.
The irony, of course, is that the Federal Reserve is now focused on tightening the money supply due to soaring consumer prices. However, that might not be the right move since the economy isn’t showing comprehensive signs of a recovery. For instance, one-third of Americans have missed payments for buy now, pay later type of services. If circumstances were so positive, alternative financing stocks presumably wouldn’t generate under-the-radar interest.
Even if broader conditions were on the up and up, approximately 5.4% of U.S. households or 7.1 million were unbanked in 2019. This figure has surely gone up due to the widening wealth gap that the Covid-19 pandemic accelerated. Therefore, these alternative financing stocks may cynically become relevant again.
7 Lesser-Known Retail Stocks to Check Out Now
Here are 7 alternative financing stocks to buy for the new normal:
EZCorp (NASDAQ:EZPW)
FirstCash Holdings (NASDAQ:FCFS)
Curo Group (NYSE:CURO)
Affirm Holdings (NASDAQ:AFRM)
Aaron’s Company (NYSE:AAN)
Rent-A-Center (NASDAQ:RCII)
World Acceptance Corp. (NASDAQ:WRLD)
Although the hedging concept of alternative financing stocks seemed a solid thesis just prior to the Covid-19 pandemic, the health crisis scattered everything into a chaotic mess. Now, instead of a trade war, we may see a real war. Furthermore, tensions with China remain unresolved, thus necessitating extreme caution for this and any other investment sector.
Alternative Financing Stocks to Buy: EZCorp (EZPW)
Source: Shutterstock
Phonetically, easy might be in EZCorp’s name but it’s certainly not a comfortable ride for investors. A pawn shop operator based in Austin, Texas, EZCorp facilities provide non-traditional financial services across the U.S. and Latin America. However, shares are down 20% for the year, raising eyebrows. Still, speculators may want to give it another look.
While pawnshops have a somewhat tawdry reputation due to Hollywood and pop cultural portrayal, the reality is that that, per the National Pawnbrokers Association, even today, “many people depend on independent pawnbrokers to help them meet daily financial needs not offered by other financial institutions.” Moreover, the association states the following:
“Pawn customers represent the working families of America who periodically experience an unexpected need for short-term funds. Pawn loans keep the electricity on, the rent paid, and cars running with full tanks of gas by providing a safety-net to over 30 million unbanked or underbanked Americans. Independent pawnbrokers also provide services to America’s small businesses.”
Logically, the Covid-19 pandemic imposed a severe and unexpected impact on already hurting American families. While it might seem cynical, EZCorp does provide a necessary service, making it one of those alternative financing stocks to consider.
FirstCash Holdings (FCFS)
Source: Miriam Doerr Martin Frommherz via Shutterstock
One of the most popular alternative financing stocks available, FirstCash is the “leading international operator of pawn stores with more than 2,800 retail pawn and consumer lending locations in 25 U.S. states and the District of Columbia,” per its website.
Like its rival EZCorp, FirstCash also has a presence in Latin America, “which includes all the states in Mexico and the countries of Guatemala, El Salvador and Colombia.” The company “focuses on serving cash and credit constrained consumers primarily through its retail pawn locations.” As well, it facilitates “small consumer pawn loans secured by pledged personal property.”
Although shares of FCFS have seen significant red ink, the benefit to FirstCash is that its year-to-date loss of nearly 10% is roughly half that of EZCorp. Admittedly though, the wild nature of this security makes FCFS a tough buy right now. However, as circumstances cool down, it could be interesting as a long-term speculative idea.
7 Lesser-Known Retail Stocks to Check Out Now
Basically, the government is no longer backstopping the American people. Therefore, those households that are the most vulnerable must get on their feet again, which should bolster demand for pawn shops and similar alternative financing stocks.
Curo Group (CURO)
Taking its name from a Latin word that literally means “to provide money,” Curo Group, “uses sophisticated and proprietary acquisition, underwriting and CRM [customer relationship management] technologies to manage a diverse range of online, mobile and branch-based consumer financial and loan services.”
As mentioned earlier, the Federal Deposit Insurance Corporation estimates that 7.1 million households in this country are unbanked. As the Detroit Free Press added, “Millions of consumers — including people of color — aren’t able to easily cash a check or visit an ATM because they’re not customers of regular banks.”
Further, it’s very possible that the circumstances associated with the pandemic could see more people fall out of the network of traditional banking, particularly workers “who experience significant variations in pay from week to week,” who are “more likely to not have a basic checking or savings account.”
This is where Curo Group steps in. By leveraging technology, the company is able to serve a broad range of non-prime customers in the U.S. and Canada. Further, with the collective savings associated with stimulus payments and unemployment checks winding down, people will need other means of securing capital, boding well over the long term for alternative financing stocks.
Affirm Holdings (AFRM)
Source: Joaquin Corbalan P / Shutterstock.com
While the narrative for alternative financing stocks ahead of a possibly rough economic cycle makes intuitive sense, as you can see from their immediate performance this year, the statistics aren’t exactly pleasant. Clearly, this segment is a wait now, buy later type of deal. That’s rather ironic for Affirm Holdings, which specializes in the buy now, pay later business model.
Well, one look at AFRM stock and you’ll see why you may want to let the knives fall first before sticking your hand out for a discount. Since the January opener, AFRM has dropped more than 46%. That’s not just shocking for alternative financing stocks; simply, it’s miserable no matter what market segment you’re focusing on.
Personally, I’m torn with Affirm. Though the backdrop for alternative financing stocks is intriguing, Affirm hasn’t delivered on the financials. Sure, the company’s growing the top line sequentially; however, the losses on the bottom line continue to expand quarter after quarter. Add the Fed’s hawkish monetary policy signaling and you have a shaky investment.
7 Lesser-Known Retail Stocks to Check Out Now
Nevertheless, if the economy falls into recession, people will find ways to stretch their dollars — high rates or no. So if you have speculation funds lying around, you may want to nibble at AFRM.
Aaron’s Company (AAN)
Source: IgorGolovniov / Shutterstock.com
A rent-to-own business, Aaron’s Company allows customers to buy a range of products from furniture to household appliances to electronics via a pay-as-you-go model. This enables everyday folks to stock up on all the essentials, particularly important given the unprecedented housing boom.
As you know, the real estate market is incredibly cutthroat these days, with multiple bids racking up on the screen the moment a new property lists. To convince sellers who now enjoy an overflow of offers, many are choosing to forego contingencies. However, this extreme bull market has caused many new homeowners to stretch themselves, leading to certain financial regrets.
Still, with the ink dried on the contract, there’s not much that can be done. Further, the financial stretching that occurred leaves few liquid funds lying around for furniture and similar items. Therefore, Aaron’s Company could fill an important role in the housing boom, especially if it continues unabated.
Admittedly, the storyline here is on the riskier side. And similar to other alternative financing stocks, AAN is down sharply, shedding nearly 18% YTD. However, once the market stabilizes, AAN might be something to consider since so many potential customers are stuck with their pricey home purchases.
Rent-A-Center (RCII)
Source: David Tonelson/Shutterstock.com
If you’re focused on alternative financing stocks in the rent-to-own segment, Rent-A-Center may be a viable idea. Like the others on this list, RCII is admittedly a falling knife type of investment, with shares down nearly 15% YTD. Further, over the trailing year, the stock has gone nowhere, engaging in choppy trading but settling for a 3% loss.
However, some analysts were looking to Rent-A-Center as a recession hedge prior to the Covid-19 disaster. Part of the reason is that during economic downturns, consumer spending doesn’t go straight to zero. Instead, many households look for ways to stretch their cash flow first before biting the bullet and making wholesale cuts. Therefore, RCII may offer relevance as one of the alternative financing stocks to consider.
Interestingly, Rent-A-Center was one of the biggest winners throughout the entirety of the Trump administration. Shortly after the former president entered office, RCII was trading in single-digit territory. Right before the pandemic, shares were briefly trading above $30. Leading up to the 2020 election, shares frequently traded above $30 (though to be fair this stock really took off after President Biden won).
7 Lesser-Known Retail Stocks to Check Out Now
The point is, the historical nature of RCII seems to confirm the idea that alternative financing stocks can weather economically negative events. Thus, gamblers may want to consider RCII after it’s done bleeding out prior excess bullishness.
World Acceptance Corp. (WRLD)
Source: shutterstock
Billed as a small-loan finance company, World Acceptance Corp. specializes in “offering short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals.” Per its website, loan approvals can occur in as little as an hour, perfect for life’s unexpected expenses.
At least that’s the marketing message. As an investor, you’re not necessarily going to see WRLD as a perfect play, with shares plummeting over 20% YTD. Unfortunately, the panic on Wall Street has hit alternative financing stocks especially hard. At the same time, WRLD’s trailing-year return of over 29% provides a glimmer of its potential.
Similar to Rent-A-Center, World Acceptance was largely a beneficiary of the Trump administration. In early February 2017, WRLD was trading below $50. At its peak in 2019, it jumped above $170 before declining to $90 prior to the pandemic. Still, it went onto recover from the doldrums, reaching record heights late last year.
In other words, alternative financing stocks under non-pandemic conditions tend to weather economic uncertainty well. Therefore, once WRLD releases the excess speculation baked into its price tag from this hopefully non-recurring pandemic, the lending service could be appealing for contrarians.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Alternative Financing Stocks to Buy for the New Normal appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
7 Lesser-Known Retail Stocks to Check Out Now Here are 7 alternative financing stocks to buy for the new normal: EZCorp (NASDAQ:EZPW) FirstCash Holdings (NASDAQ:FCFS) Curo Group (NYSE:CURO) Affirm Holdings (NASDAQ:AFRM) Aaron’s Company (NYSE:AAN) Rent-A-Center (NASDAQ:RCII) World Acceptance Corp. (NASDAQ:WRLD) Although the hedging concept of alternative financing stocks seemed a solid thesis just prior to the Covid-19 pandemic, the health crisis scattered everything into a chaotic mess. Aaron’s Company (AAN) Source: IgorGolovniov / Shutterstock.com A rent-to-own business, Aaron’s Company allows customers to buy a range of products from furniture to household appliances to electronics via a pay-as-you-go model. And similar to other alternative financing stocks, AAN is down sharply, shedding nearly 18% YTD.
|
7 Lesser-Known Retail Stocks to Check Out Now Here are 7 alternative financing stocks to buy for the new normal: EZCorp (NASDAQ:EZPW) FirstCash Holdings (NASDAQ:FCFS) Curo Group (NYSE:CURO) Affirm Holdings (NASDAQ:AFRM) Aaron’s Company (NYSE:AAN) Rent-A-Center (NASDAQ:RCII) World Acceptance Corp. (NASDAQ:WRLD) Although the hedging concept of alternative financing stocks seemed a solid thesis just prior to the Covid-19 pandemic, the health crisis scattered everything into a chaotic mess. Aaron’s Company (AAN) Source: IgorGolovniov / Shutterstock.com A rent-to-own business, Aaron’s Company allows customers to buy a range of products from furniture to household appliances to electronics via a pay-as-you-go model. And similar to other alternative financing stocks, AAN is down sharply, shedding nearly 18% YTD.
|
7 Lesser-Known Retail Stocks to Check Out Now Here are 7 alternative financing stocks to buy for the new normal: EZCorp (NASDAQ:EZPW) FirstCash Holdings (NASDAQ:FCFS) Curo Group (NYSE:CURO) Affirm Holdings (NASDAQ:AFRM) Aaron’s Company (NYSE:AAN) Rent-A-Center (NASDAQ:RCII) World Acceptance Corp. (NASDAQ:WRLD) Although the hedging concept of alternative financing stocks seemed a solid thesis just prior to the Covid-19 pandemic, the health crisis scattered everything into a chaotic mess. Aaron’s Company (AAN) Source: IgorGolovniov / Shutterstock.com A rent-to-own business, Aaron’s Company allows customers to buy a range of products from furniture to household appliances to electronics via a pay-as-you-go model. And similar to other alternative financing stocks, AAN is down sharply, shedding nearly 18% YTD.
|
7 Lesser-Known Retail Stocks to Check Out Now Here are 7 alternative financing stocks to buy for the new normal: EZCorp (NASDAQ:EZPW) FirstCash Holdings (NASDAQ:FCFS) Curo Group (NYSE:CURO) Affirm Holdings (NASDAQ:AFRM) Aaron’s Company (NYSE:AAN) Rent-A-Center (NASDAQ:RCII) World Acceptance Corp. (NASDAQ:WRLD) Although the hedging concept of alternative financing stocks seemed a solid thesis just prior to the Covid-19 pandemic, the health crisis scattered everything into a chaotic mess. Aaron’s Company (AAN) Source: IgorGolovniov / Shutterstock.com A rent-to-own business, Aaron’s Company allows customers to buy a range of products from furniture to household appliances to electronics via a pay-as-you-go model. And similar to other alternative financing stocks, AAN is down sharply, shedding nearly 18% YTD.
|
8926.0
|
2022-01-26 00:00:00 UTC
|
Cimpress (CMPR) Q2 Earnings Surpass Estimates
|
AAN
|
https://www.nasdaq.com/articles/cimpress-cmpr-q2-earnings-surpass-estimates
|
nan
|
nan
|
Cimpress (CMPR) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 31.65%. A quarter ago, it was expected that this marketing materials maker would post a loss of $0.12 per share when it actually produced earnings of $0.09, delivering a surprise of 175%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Cimpress, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $849.72 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $786.15 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cimpress shares have added about 0.4% since the beginning of the year versus the S&P 500's decline of -8.6%.
What's Next for Cimpress?
While Cimpress has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cimpress: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.40 on $658.23 million in revenues for the coming quarter and $1.49 on $2.86 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Services - Miscellaneous is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Aaron's Company, Inc. (AAN), another stock in the same industry, has yet to report results for the quarter ended December 2021.
This specialty retail is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of -51.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Aaron's Company, Inc.'s revenues are expected to be $425.85 million, down 1% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cimpress plc (CMPR): Free Stock Analysis Report
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's Company, Inc. (AAN), another stock in the same industry, has yet to report results for the quarter ended December 2021. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report A quarter ago, it was expected that this marketing materials maker would post a loss of $0.12 per share when it actually produced earnings of $0.09, delivering a surprise of 175%.
|
The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Aaron's Company, Inc. (AAN), another stock in the same industry, has yet to report results for the quarter ended December 2021. Cimpress, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $849.72 million for the quarter ended December 2021, missing the Zacks Consensus Estimate by 0.31%.
|
Aaron's Company, Inc. (AAN), another stock in the same industry, has yet to report results for the quarter ended December 2021. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Cimpress (CMPR) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.58 per share.
|
Aaron's Company, Inc. (AAN), another stock in the same industry, has yet to report results for the quarter ended December 2021. The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Cimpress (CMPR) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.58 per share.
|
8927.0
|
2021-12-14 00:00:00 UTC
|
PROG Holdings, Inc. (AAN) Ex-Dividend Date Scheduled for December 15, 2021
|
AAN
|
https://www.nasdaq.com/articles/prog-holdings-inc.-aan-ex-dividend-date-scheduled-for-december-15-2021
|
nan
|
nan
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on December 15, 2021. A cash dividend payment of $0.1 per share is scheduled to be paid on January 04, 2022. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAN has paid the same dividend. At the current stock price of $23.62, the dividend yield is 1.69%.
The previous trading day's last sale of AAN was $23.62, representing a -37% decrease from the 52 week high of $37.49 and a 45.8% increase over the 52 week low of $16.20.
AAN is a part of the Miscellaneous sector, which includes companies such as Gartner, Inc. (IT) and United Rentals, Inc. (URI). AAN's current earnings per share, an indicator of a company's profitability, is $2.8. Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as 16.51%, compared to an industry average of 8.1%.
For more information on the declaration, record and payment dates, visit the aan Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
Invesco S&P Smallcap 600 Pure Value ETF (RZV).
The top-performing ETF of this group is RZV with an increase of 5.63% over the last 100 days. It also has the highest percent weighting of AAN at 1.23%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. AAN is a part of the Miscellaneous sector, which includes companies such as Gartner, Inc. (IT) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as 16.51%, compared to an industry average of 8.1%.
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on December 15, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. AAN's current earnings per share, an indicator of a company's profitability, is $2.8.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the aan Dividend History page. The following ETF(s) have AAN as a top-10 holding: Invesco S&P Smallcap 600 Pure Value ETF (RZV).
|
AAN's current earnings per share, an indicator of a company's profitability, is $2.8. The following ETF(s) have AAN as a top-10 holding: Invesco S&P Smallcap 600 Pure Value ETF (RZV). PROG Holdings, Inc. (AAN) will begin trading ex-dividend on December 15, 2021.
|
8928.0
|
2021-12-10 00:00:00 UTC
|
Be Sure To Check Out The Aaron's Company, Inc. (NYSE:AAN) Before It Goes Ex-Dividend
|
AAN
|
https://www.nasdaq.com/articles/be-sure-to-check-out-the-aarons-company-inc.-nyse%3Aaan-before-it-goes-ex-dividend
|
nan
|
nan
|
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The Aaron's Company, Inc. (NYSE:AAN) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Aaron's Company investors that purchase the stock on or after the 15th of December will not receive the dividend, which will be paid on the 4th of January.
The company's upcoming dividend is US$0.10 a share, following on from the last 12 months, when the company distributed a total of US$0.40 per share to shareholders. Based on the last year's worth of payments, Aaron's Company stock has a trailing yield of around 1.6% on the current share price of $24.38. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Aaron's Company paid out just 10% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It distributed 37% of its free cash flow as dividends, a comfortable payout level for most companies.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:AAN Historic Dividend December 10th 2021
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Aaron's Company earnings per share are up 9.8% per annum over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. We think this is generally an attractive combination, as dividends can grow through a combination of earnings growth and or a higher payout ratio over time.
Given that Aaron's Company has only been paying a dividend for a year, there's not much of a past history to draw insight from.
To Sum It Up
From a dividend perspective, should investors buy or avoid Aaron's Company? Earnings per share have been growing moderately, and Aaron's Company is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. It might be nice to see earnings growing faster, but Aaron's Company is being conservative with its dividend payouts and could still perform reasonably over the long run. It's a promising combination that should mark this company worthy of closer attention.
In light of that, while Aaron's Company has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 4 warning signs for Aaron's Company (1 doesn't sit too well with us!) that deserve your attention before investing in the shares.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The Aaron's Company, Inc. (NYSE:AAN) is about to trade ex-dividend in the next 4 days. NYSE:AAN Historic Dividend December 10th 2021 Have Earnings And Dividends Been Growing? It might be nice to see earnings growing faster, but Aaron's Company is being conservative with its dividend payouts and could still perform reasonably over the long run.
|
NYSE:AAN Historic Dividend December 10th 2021 Have Earnings And Dividends Been Growing? Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The Aaron's Company, Inc. (NYSE:AAN) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend.
|
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The Aaron's Company, Inc. (NYSE:AAN) is about to trade ex-dividend in the next 4 days. NYSE:AAN Historic Dividend December 10th 2021 Have Earnings And Dividends Been Growing? The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend.
|
NYSE:AAN Historic Dividend December 10th 2021 Have Earnings And Dividends Been Growing? Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The Aaron's Company, Inc. (NYSE:AAN) is about to trade ex-dividend in the next 4 days. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
|
8929.0
|
2021-11-30 00:00:00 UTC
|
Investors in Aaron's Company (NYSE:AAN) have made a return of 27% over the past year
|
AAN
|
https://www.nasdaq.com/articles/investors-in-aarons-company-nyse%3Aaan-have-made-a-return-of-27-over-the-past-year
|
nan
|
nan
|
A diverse portfolio of stocks will always have winners and losers. But the goal is to pick stocks that do better than average. One such company is The Aaron's Company, Inc. (NYSE:AAN), which saw its share price increase 26% in the last year, slightly above the market return of around 23% (not including dividends). Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During the last year Aaron's Company grew its earnings per share, moving from a loss to a profit.
We think the growth looks very prospective, so we're not surprised the market liked it too. Inflection points like this can be a great time to take a closer look at a company.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
NYSE:AAN Earnings Per Share Growth November 30th 2021
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Dive deeper into the earnings by checking this interactive graph of Aaron's Company's earnings, revenue and cash flow.
A Different Perspective
In the last year the market returned about 25%, and Aaron's Company generated a TSR of 27% for its shareholders. Unfortunately the share price is down 9.1% over the last quarter. This could simply be a short term fluctuation, though. Even the biggest winners have their down periods. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Aaron's Company has 4 warning signs (and 1 which is concerning) we think you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
NYSE:AAN Earnings Per Share Growth November 30th 2021 It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. One such company is The Aaron's Company, Inc. (NYSE:AAN), which saw its share price increase 26% in the last year, slightly above the market return of around 23% (not including dividends). Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
|
NYSE:AAN Earnings Per Share Growth November 30th 2021 It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. One such company is The Aaron's Company, Inc. (NYSE:AAN), which saw its share price increase 26% in the last year, slightly above the market return of around 23% (not including dividends). Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
|
One such company is The Aaron's Company, Inc. (NYSE:AAN), which saw its share price increase 26% in the last year, slightly above the market return of around 23% (not including dividends). NYSE:AAN Earnings Per Share Growth November 30th 2021 It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
|
One such company is The Aaron's Company, Inc. (NYSE:AAN), which saw its share price increase 26% in the last year, slightly above the market return of around 23% (not including dividends). NYSE:AAN Earnings Per Share Growth November 30th 2021 It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
|
8930.0
|
2021-11-23 00:00:00 UTC
|
Strategy To YieldBoost Aaron's Co From 1.6% To 15.1% Using Options
|
AAN
|
https://www.nasdaq.com/articles/strategy-to-yieldboost-aarons-co-from-1.6-to-15.1-using-options
|
nan
|
nan
|
Shareholders of Aaron's Co Inc (Symbol: AAN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $30 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but AAN shares would have to climb 16.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.3% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Aaron's Co Inc, looking at the dividend history chart for AAN below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.6% annualized dividend yield.
Below is a chart showing AAN's trailing twelve month trading history, with the $30 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the March 2022 covered call at the $30 strike gives good reward for the risk of having given away the upside beyond $30. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Aaron's Co Inc (considering the last 252 trading day closing values as well as today's price of $25.39) to be 111%. For other call options contract ideas at the various different available expirations, visit the AAN Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 2.51M contracts, with call volume at 4.36M, for a put:call ratio of 0.58 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $30 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the March 2022 covered call at the $30 strike gives good reward for the risk of having given away the upside beyond $30. Shareholders of Aaron's Co Inc (Symbol: AAN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $30 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but AAN shares would have to climb 16.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.3% return from this trading level, in addition to any dividends collected before the stock was called.
|
Shareholders of Aaron's Co Inc (Symbol: AAN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $30 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but AAN shares would have to climb 16.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.3% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAN's trailing twelve month trading history, with the $30 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the March 2022 covered call at the $30 strike gives good reward for the risk of having given away the upside beyond $30.
|
Shareholders of Aaron's Co Inc (Symbol: AAN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $30 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Any upside above $30 would be lost if the stock rises there and is called away, but AAN shares would have to climb 16.1% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 20.3% return from this trading level, in addition to any dividends collected before the stock was called. In the case of Aaron's Co Inc, looking at the dividend history chart for AAN below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.6% annualized dividend yield.
|
Shareholders of Aaron's Co Inc (Symbol: AAN) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the March 2022 covered call at the $30 strike and collect the premium based on the $1.10 bid, which annualizes to an additional 13.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 15.1% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAN's trailing twelve month trading history, with the $30 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the March 2022 covered call at the $30 strike gives good reward for the risk of having given away the upside beyond $30. For other call options contract ideas at the various different available expirations, visit the AAN Stock Options page of StockOptionsChannel.com.
|
8931.0
|
2021-11-23 00:00:00 UTC
|
Add Up The Pieces: SLY Could Be Worth $115
|
AAN
|
https://www.nasdaq.com/articles/add-up-the-pieces%3A-sly-could-be-worth-%24115
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR— S&P 600 Small Cap ETF (Symbol: SLY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $115.17 per unit.
With SLY trading at a recent price near $102.11 per unit, that means that analysts see 12.79% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SLY's underlying holdings with notable upside to their analyst target prices are EZCORP, Inc. (Symbol: EZPW), Aaron's Co Inc (Symbol: AAN), and Employers Holdings Inc (Symbol: EIG). Although EZPW has traded at a recent price of $8.11/share, the average analyst target is 26.39% higher at $10.25/share. Similarly, AAN has 25.05% upside from the recent share price of $25.43 if the average analyst target price of $31.80/share is reached, and analysts on average are expecting EIG to reach a target price of $49.50/share, which is 24.78% above the recent price of $39.67. Below is a twelve month price history chart comparing the stock performance of EZPW, AAN, and EIG:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR— S&P 600 Small Cap ETF SLY $102.11 $115.17 12.79%
EZCORP, Inc. EZPW $8.11 $10.25 26.39%
Aaron's Co Inc AAN $25.43 $31.80 25.05%
Employers Holdings Inc EIG $39.67 $49.50 24.78%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SPDR— S&P 600 Small Cap ETF SLY $102.11 $115.17 12.79% EZCORP, Inc. EZPW $8.11 $10.25 26.39% Aaron's Co Inc AAN $25.43 $31.80 25.05% Employers Holdings Inc EIG $39.67 $49.50 24.78% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SLY's underlying holdings with notable upside to their analyst target prices are EZCORP, Inc. (Symbol: EZPW), Aaron's Co Inc (Symbol: AAN), and Employers Holdings Inc (Symbol: EIG). Similarly, AAN has 25.05% upside from the recent share price of $25.43 if the average analyst target price of $31.80/share is reached, and analysts on average are expecting EIG to reach a target price of $49.50/share, which is 24.78% above the recent price of $39.67.
|
Three of SLY's underlying holdings with notable upside to their analyst target prices are EZCORP, Inc. (Symbol: EZPW), Aaron's Co Inc (Symbol: AAN), and Employers Holdings Inc (Symbol: EIG). Similarly, AAN has 25.05% upside from the recent share price of $25.43 if the average analyst target price of $31.80/share is reached, and analysts on average are expecting EIG to reach a target price of $49.50/share, which is 24.78% above the recent price of $39.67. SPDR— S&P 600 Small Cap ETF SLY $102.11 $115.17 12.79% EZCORP, Inc. EZPW $8.11 $10.25 26.39% Aaron's Co Inc AAN $25.43 $31.80 25.05% Employers Holdings Inc EIG $39.67 $49.50 24.78% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, AAN has 25.05% upside from the recent share price of $25.43 if the average analyst target price of $31.80/share is reached, and analysts on average are expecting EIG to reach a target price of $49.50/share, which is 24.78% above the recent price of $39.67. Three of SLY's underlying holdings with notable upside to their analyst target prices are EZCORP, Inc. (Symbol: EZPW), Aaron's Co Inc (Symbol: AAN), and Employers Holdings Inc (Symbol: EIG). Below is a twelve month price history chart comparing the stock performance of EZPW, AAN, and EIG: Below is a summary table of the current analyst target prices discussed above:
|
SPDR— S&P 600 Small Cap ETF SLY $102.11 $115.17 12.79% EZCORP, Inc. EZPW $8.11 $10.25 26.39% Aaron's Co Inc AAN $25.43 $31.80 25.05% Employers Holdings Inc EIG $39.67 $49.50 24.78% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SLY's underlying holdings with notable upside to their analyst target prices are EZCORP, Inc. (Symbol: EZPW), Aaron's Co Inc (Symbol: AAN), and Employers Holdings Inc (Symbol: EIG). Similarly, AAN has 25.05% upside from the recent share price of $25.43 if the average analyst target price of $31.80/share is reached, and analysts on average are expecting EIG to reach a target price of $49.50/share, which is 24.78% above the recent price of $39.67.
|
8932.0
|
2021-10-26 00:00:00 UTC
|
Aarons Inc (AAN) Q3 2021 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-inc-aan-q3-2021-earnings-call-transcript-2021-10-26
|
nan
|
nan
|
Image source: The Motley Fool.
Aarons Inc (NYSE: AAN)
Q3 2021 Earnings Call
Oct 26, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, my name is Brika and I will be your conference coordinator. At this time, I would like to welcome everyone to The Aaron's Company Third Quarter 2021 Earnings Conference Call.
[Operator Instructions] I will now turn the call over to Mr. Michael Dickerson, Vice President of Corporate Communications and Investor Relations for Aaron's. You may begin your conference.
10 stocks we like better than The Aaron's Company, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and The Aaron's Company, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 20, 2021
Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations
Thank you and good morning everyone. Welcome to The Aaron's Company third quarter 2021earnings conference call
Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall, Aaron's Chief Financial Officer. After our prepared remarks, we will open the call for questions. Many of you have already seen a copy of our earnings release issued this morning. For those of you that have not, it is available on the Investor Relations section of our website at investor.aarons.com.
During this call, certain statements we make will be forward looking, including our financial performance outlook for 2021. I want to call your attention to our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings release. The Safe Harbor provision identifies risks that may cause actual results to differ materially from the content of our forward-looking statements. Also, please see our Form 10-K for the year ended December 31, 2020, and other subsequent periodic filings with the SEC for a description of the risks related to our business that may cause actual results to differ materially from our forward-looking statements.
On today's call, we will be referring to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, non-GAAP net earnings and non-GAAP EPS, which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included in our earnings release.
With that, I will now turn the call over to our CEO, Douglas Lindsay.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Mike, and thank you for joining us today to discuss our third quarter results. I'm pleased to report another quarter of strong operating performance and continued positive momentum at the Aaron's Company. In the nearly one year since our separation, we have significantly strengthened our leadership position in the direct-to-consumer lease end market and are tracking well ahead of our long-term strategic plan. Continued investments in our best-in-class e-commerce channel, predictive lease decisioning engine and our high performing GenNext stores are driving greater productivity and growth in our business. Through the tremendous efforts of our team, we continue to transform Aaron's go-to-market strategy by delivering customer friendly digital solutions, easy lease approvals and an enhanced shopping experience.
Since 1955, Aaron's has been committed to serving a customer base that has too often been overlooked or excluded from preferred retail experiences. Today, we are leveraging our long and deep understanding of this customer segment to say yes when others say no; to provide our customers with access to great products on flexible and affordable terms and to deliver a seamless customer experience not only across our distributed store network but also digitally through our award winning e-commerce platform. Whether our customers interact with us in one of our beautiful new GenNext stores or via their mobile device, we continue to provide a growing assortment of products they want and need with low monthly payments that fit their budget and best-in-class customer service.
I'm pleased to announce that our third quarter 2021 results have again exceeded our expectations through continued growth in the size of our lease portfolio same-store revenues and e-commerce revenues. As a result, we returned another $37.5 million to shareholders in the quarter in the form of share repurchases. This brings us to a total of nearly $100 million of capital returned to shareholders thus far this year. The strong third quarter results, we are again raising our revenue and earnings outlook for the full year 2021. In the third quarter, same-store revenues grew 4.6% compared to the prior year, the sixth consecutive quarter of positive same-store revenue growth. The improvement was primarily driven by an 8.7% larger lease portfolio size entering the third quarter partially offset by a lower level of customer payment activity compared to the prior year.
Our same-store lease portfolio size continues to grow at a healthy pace ending the third quarter up 6.1% compared to the prior year. We attribute this growth primarily to strong demand for our products, higher average ticket, the favorable impact of centralized lease decisioning and the residual impact of government stimulus on the portfolio. As discussed previously, our predictive lease decisioning engine is working very well and enables us to better match the customers' lease payment with their financial position with the goal of helping more customers achieve ownership and lowering our overall cost to serve. In addition, our lease decisioning algorithms allow us to be flexible in responding to changes in the macroeconomic environment and to optimize outcomes that drive profitability.
As of the end of the third quarter, more than 83% of our total lease portfolio is comprised of lease agreements that were originated through our centralized decisioning platforms. This compares to approximately 60% at the beginning of 2021. As I mentioned last quarter, lease payment activity in 2021 has exceeded historical levels due to the government stimulus provided to our customer leading to higher lease renewal rates and lower write-offs as we saw in the third quarter and expect to see over the next three to four quarters, customer payment activity continues to normalize. Because of investments we've made in centralized decisioning and lease servicing technologies, we expect 2022 lease renewal rates to ultimately settle above pre-pandemic levels but below the level we expect for the full year 2021. We also expect lease merchandise write-offs in 2022 to settle below pre-pandemic levels but above the level we expect for full year 2021.
In addition to investments in our decisioning technology, we also continue to invest in our e-commerce channel and our GenNext strategy. Our e-commerce channel continues to grow at double-digit rates representing 14.3% of total lease revenues in the quarter. The growth in our portfolio of leases generated online is driving improvements to our overall margin performance as we leverage the fixed cost structure of our store and supply chain assets to serve customers that are seeking a virtual shopping experience, low monthly payments and free delivery. Ongoing investments in digital marketing and our customers' online experience are driving growth in this important channel, specifically e-commerce investments are leading to an enhanced shopping experience driven by personalization and richer product content improved customer visibility into products that are available for same or next day delivery and a broader assortment that includes new product categories. Today we have more than 3,000 products on aaron's.com, which is double from a year ago. And our express delivery program accounts for approximately 30% of e-commerce volume. Because of this, we're generating a higher customer conversion rate, lowering our effective acquisition costs and delivering higher customer satisfaction.
I could not be happier with the efforts of our team and the growing marketplace we're creating on aaron's.com. As we discussed last quarter, our GenNext stores continue to perform at a high level. During the third quarter, we increased the size of our GenNext store set by 22 to end the quarter with 86 locations. And we believe we remain on track to have more than 100 GenNext stores by the end of the year. To date, our portfolio of GenNext stores is generating results that are exceeding our targeted 25% internal rate of return and 5-year payback period. Equally as encouraging, monthly lease originations in GenNext stores open for less than one year again grew at a rate of more than 20 percentage points higher than our average legacy stores. As we accelerate the rollout of new GenNext
Stores, we continue to maintain a disciplined approach around our execution of the strategy.
Before I turn the call over to Kelly, let me reiterate how pleased I am with the company's strong performance in the third quarter. Our merchandising and supply chain teams have performed exceptionally well by getting ahead of market disruptions, by procuring inventory and expanding output from our Woodhaven manufacturing facilities. As a result, we are entering the holiday season with strong inventory levels in both our stores and distribution centers and we have been increasing prices to respond to inflationary pressures and maintain product margins. I remain encouraged by the underlying performance of both our store and e-commerce channels as we're tracking well ahead of our 5-year plan on revenue and earnings.
I'll now turn the call over to Kelly to discuss our financial results.
C. Kelly Wall -- Chief Financial Officer
Thank you, Douglas. For the third quarter of 2021, total revenues were $452.2 million compared with $441 million for the third quarter of 2020, an increase of 2.5%. The increase in revenues was primarily due to the increased size of our lease portfolio, partially offset by the expected lower customer payment activity during the quarter and the reduction of 79 franchise stores during the 15-month period ended September 30, 2021. Lease revenues in the third quarter of this year also benefited by an increase in ticket size or monthly rent for agreement, that is offsetting the inflation we are experiencing in the cost of lease merchandise.
On a same-store basis, lease and retail revenues increased 4.6% in the third quarter compared to the prior year quarter. As Douglas mentioned, this is our sixth consecutive positive quarter of same-store revenue growth. Leases originated in both our e-commerce and in-store channels contributed to our revenue growth, which was primarily driven by a larger same-store lease portfolio size, partially offset by the expected lower customer payment activity in the quarter. More specifically, in the third quarter of this year, our customer lease renewal rate was 89.7%, which was approximately 230 basis points higher than the 3-year third quarter pre-pandemic average but was approximately 130 basis points lower than the third quarter of last year. For any period, the customer lease renewal rate is calculated by dividing the amount of customer payments recorded on an accrual basis as of the end of such period by the amount of total customer lease payments due for renewal during that period.
As discussed on our lastearnings call the benefits to our customer from government stimulus programs declined in the third quarter and as expected, resulted in lower customer payment activity as compared to the prior year. We expect customer payment activity to continue to decline year-over-year for the next three or four quarters. And I will point out that a 100 basis point change up or down in customer lease renewal rates or write-offs on a $1.6 billion annual portfolio of total collectible customer lease payments results in a $16 million change in EBITDA.
Additionally, we continue to expect that customer payment activity will benefit from our investments in centralized decisioning. We estimate that this technology has improved lease renewal rates by over 100 basis points compared to the pre-pandemic levels, while also materially improving the customer experience and simplifying the day-to-day activities at our stores. E-commerce revenues increased 13.3% versus the third quarter of 2020 and represented 14.3% of overall lease revenues compared to 13.1% in the third quarter of the prior year. We continue to make investments in this important channel that we believe will continue to drive long-term growth for the company. The company ended the third quarter of 2021 with a lease portfolio size for all company-operated stores of $132.2 million, an increase of 5.8% compared to a lease portfolio size of $125 million on September 30 of last year. As a reminder, lease portfolio size represents the next month's total collectible lease payments from our aggregate outstanding customer lease agreements. Management believes this is one of the metrics that is important in understanding the drivers of future lease revenue.
Total operating expenses, excluding restructuring expenses and spin-related costs were up $15.7 million in the quarter as compared to the third quarter of last year. This increase is due primarily to higher personnel costs and a higher provision for lease merchandise write-offs. Personnel costs increased $5.1 million in the third quarter of 2021 as compared to the prior year, primarily due to higher wages in our stores, additional personnel to support our key strategic initiatives and higher stand-alone public company costs. Additionally, personnel costs were lower-than-anticipated during the third quarter this year as staffing levels in our stores remain below our operational targets due to the current challenges in the US labor market for retail-based hourly employees. Other operating expenses were relatively flat to the prior year period due to higher occupancy, shipping and handling costs, professional services and bank and credit card-related fees. These increases were partially offset by lower advertising costs in the third quarter of 2021 versus the prior year period.
The provision for lease merchandise write-offs as a percentage of lease revenues and fees was 4.9% for the three months ended September 30, 2021, compared to an all-time low of 2.4% in the comparable period in 2020. The increase in write-offs in the third quarter of this year compared to last year was primarily due to lower customer payment activity following several quarters where our customers received financial assistance in the form of government stimulus payments and supplemental federal unemployment benefits. This normalization in write-offs was partially offset by the continued favorable impact of our technology investments, which include decisioning algorithms and customer payment platforms as well as our team's strong operational execution. As we discussed on prior earnings calls, we continue to expect that annual write-offs will be between 4% to 5% of lease revenues and fees.
Adjusted EBITDA for the company was $53.6 million for the third quarter of 2021 compared with $64.3 million for the same period in 2020, a decrease of $10.7 million or 16.6%. As a percentage of revenues, adjusted EBITDA margin was 11.9% in the third quarter of 2021 compared to 14.6% for the same period in 2020. This expected decline in adjusted EBITDA and adjusted EBITDA margin was due to lower customer payment activity, higher lease merchandise write-offs and higher personnel costs compared to the prior year levels.
On a non-GAAP basis, diluted earnings per share were $0.83 in the third quarter of 2021 compared with non-GAAP diluted earnings per share of $1.10 for the same quarter in 2020. Cash generated from operating activities was $30.2 million for the third quarter of 2021, a decline of $92.6 million compared to the third quarter of 2020. This decline was primarily due to incremental purchases of lease merchandise to meet increased customer demand and to mitigate the impact of anticipated supply chain challenges ahead of the upcoming holiday season. In addition, the cost of our lease merchandise was adversely impacted by inflationary pressure.
During the third quarter, the company purchased approximately 1,333,000 shares of Aaron's common stock for a total purchase price of approximately $37.5 million and through a 10b5-1 plan continue to repurchase shares into the first month of the current quarter. For the year-to-date period ended October 22, 2021, the company has repurchased 3,034,000 shares for approximately $90.4 million. As of October 22, we had approximately $60 million remaining under the company's $150 million share repurchase program that was approved by our Board in March of this year and ends December 31, 2023.
Additionally, the company's Board of Directors declared a regular quarterly cash dividend in August of $0.10 per share, which was paid on October 5. As of September 30, 2021, the company had a cash balance of $15 million, no outstanding debt and total available liquidity of $248 million, which includes $233 million available under our unsecured revolving credit facility.
As Douglas highlighted in his remarks, we have again raised our full year revenue and adjusted EBITDA outlook for 2021. For the full year, we have increased our outlook for total revenues to between $1.82 billion and $1.83 billion. We also increased our outlook for adjusted EBITDA to between $225 million and $230 million.
For the full year 2021, we have maintained our outlook for an effective tax rate of 26%; we expect depreciation and amortization of approximately $70 million, and we expect the diluted weighted average share count for full year 2021 to be 34 million shares. We have not assumed any additional shares repurchased beyond what has been discussed earlier on the call.
We have also increased our full year same-store revenues outlook from a range of 6% to 8% to a range of 7.5% to 8.5%. This increase is primarily a result of the continued year-over-year growth in our lease portfolio size. We have maintained our expected capital expenditure range of $90 million to $100 million. We have reduced our free cash flow outlook for 2021 to $30 million to $40 million, primarily to reflect the significant investment in lease merchandise inventory the company has made to mitigate the impact of global supply chain challenges and the related inflationary pressures. Based on our current inventory levels, we do not anticipate any material challenges in meeting our customers' product demand as we end 2021 and head into 2022.
As I have previously described, benefits to our customer from government stimulus programs have moderated in the third quarter. Our revised outlook continues to assume customer lease payment activity remains higher in the fourth quarter of 2021 when compared to pre COVID-19 pandemic levels, but lower than the fourth quarter of 2020. At the same time, we believe the favorable impact of centralized lease decisioning, our digital servicing platforms and other operational enhancements are contributing to a sustainable improvement in customer payment and write-off activity. Additionally, we expect write-offs will continue to be lower in the fourth quarter of 2021 when compared to pre COVID-19 pandemic levels but higher than the fourth quarter of 2020.
Finally, our updated outlook assumes no significant deterioration in the current retail environment, state of the US economy or global supply chain as compared to their current conditions.
With that, I will now turn the call over to the operator, who will assist with your questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] We have the first question on the phone lines from Kyle Joseph of Jefferies. So Kyle, please go ahead.
Kyle Joseph -- Jefferies -- Analyst
Hey, good morning guys. Thanks for having me on. Congratulations on a good quarter. I just wanted to talk about your outlook for payment levels. I think -- I'm sorry, I missed it but I think you gave the write-off levels for the quarter. And then you talked about kind of the long-term outlook and just remind us about where that long-term outlook is versus kind of the historical range kind of before centralized underwriting.
C. Kelly Wall -- Chief Financial Officer
Yes. Kyle, it's Kelly. It's a great question. As we talked about, write-offs were up in the quarter as we expected, customer payment activity in the quarter, soft and not as strong as what we saw in the back half of last year and the first half of this year. Again, we covered that on our earlier call. As it relates to kind of what we expect going forward, we did include some language in the earnings release, and we've also covered this in prior discussions and on the call last quarter.
As we move forward, and the customer is no longer benefiting from the customer stimulus that they've enjoyed for the last FOUR quarters. They're going to be less liquid. And as we've talked about in the past, where our customer is less liquid, our customer payment activity is lower. So we do expect over the next three to four quarters that the customer payment activity will be lower than what we've seen in the last four quarters, but higher than what we experienced pre pandemic. And the real driver there is centralized decisioning and the other operational changes that we've made.
The centralized decisioning we estimate has added 100 basis points or better to our customer payment activity. And as a reminder, I mentioned this in my prepared remarks, right, 100 basis point improvement is worth about $16 million on a $1.6 million annual lease portfolio size. So as we move forward coming out of this, we'd expect to see just that, right, customer payment activity lower, and that reflected in lower lease renewal rates as well as higher write-offs. But we're encouraged, again, by the impact of centralized lease decisioning and the other operational changes we've made, which are having long-term positive benefits on the business.
Douglas A. Lindsay -- Chief Executive Officer
Kyle, it's Douglas. I will just add one thing to that. And just this metric that we've provided this quarter renewal rates at 89.7%, as we look at that historically, those rates have been pre pandemic in kind of the 87%, 88% range. And so we renewed about that many of our customers. The remaining balance up to 100% of what we could collect would be a product that we return and charge-offs, and then that's working with the customer and ultimately sort of get them the ownership, and that's kind of what we do every month when we get to work.
When the pandemic hit and stimulus began to roll out after the pandemic, we saw those renewal rates increase roughly 200 to 300 basis points in the second half of 2020. That elevated even further in the first half of 2021. And now what we're seeing in the third quarter, what Kelly just described, is a normalizing of our renewal rates, albeit to a higher level we believe ultimately, because of centralized decisioning, once we return to normalized levels over the next 3 to 4 months. So I just want to give you the time line of kind of how that played out and what we're seeing as we move forward to support Kelly's comments.
Kyle Joseph -- Jefferies -- Analyst
Got it. I appreciate the color. And then a follow-up on that. How you see demand for new leases trending as we kind of -- with stimulus in the rearview, obviously an inflationary environment on consumer goods and broadly a normalizing credit environment out there as well?
C. Kelly Wall -- Chief Financial Officer
Sure. I mean, in the quarter, we've seen strong demand both in our stores and our e-commerce channel. Our e-comm channel, in particular, because of our inventory position, has returned to normal. We comped up in e-comm at 13%, and that was comping over prior year almost 44%. So we're really happy with that on the revenue side of things. In terms of demand, obviously, there's been strong demand over the last few quarters as people are investing in their homes. We continue to see steady demand going into the fourth quarter. And while we don't have a crystal ball, we're optimistic about our inventory position and where we stand entering the fourth quarter. But in terms of forecasting demand, we'll wait and see in the fourth quarter.
Kyle Joseph -- Jefferies -- Analyst
Got it. And one last one from me. It sounds like the GenNext stores are doing very well. Has the performance there kind of shifted the outlook for the overall store count you guys provided when -- at the initial spin time?
Douglas A. Lindsay -- Chief Executive Officer
It's interesting. The stores are doing really well. As I said, we're exceeding our pro forma as we compare to control groups, our sales or what we deliver into our portfolio are up 20 points above our control group with a larger population of stores, now 86 stores in GenNext. So that's really, really encouraging. We've got a full pipeline. We're going to do roughly 100 stores this year. I would expect we do roughly the same next year. I think what's changed is maybe our outlook on store closures, the pace of store closures or what we've merged into other stores has slowed a bit as we continue to watch the normalizing environment out there. I suspect as the environment -- the renewals environment continues to normalize, we'll go back to our same pace of store closures. Ultimately, we think we can serve our 700 markets with fewer stores, bigger e-comm and a more efficient cost structure. And so that's still our long term objective, but we're very encouraged about the demand trends and the overall progress against our strategic plan.
Kyle Joseph -- Jefferies -- Analyst
Got it. Thanks very much for answering my questions and congrats on this quarter.
C. Kelly Wall -- Chief Financial Officer
Thanks, Kyle.
Operator
Thank you. The next question comes from Vincent Caintic from Stephens. So, Vincent, please go ahead. I've opened your line.
Vincent Caintic -- Stephens Inc. -- Analyst
Thank you. Good morning. Thanks for taking my questions. So first, two questions. So first kind of a broad question and then second on the fourth quarter expectations. So first, maybe if you could talk about and touch again on the inflationary pressures and how that's -- how you think that might affect your business and how you're handling it going forward? It's nice to see that you've placed those orders and built your inventory ahead of the holiday sales season. But just sort of how you're thinking about it broadly in terms of how we should think about gross profit margins and then also labor costs and anything of that nature? Thank you.
Douglas A. Lindsay -- Chief Executive Officer
Sure. Vince, I'll kick off then we will pass it to Steve Olson to talk about specific product and supply chain issues. But we're experiencing the same economic impact as everyone else. We're seeing price increases in our products, components, fuel, transportation, wages. Our merchandising group has done a phenomenal job of getting ahead of it, keeping pace with cost increases through price increases and our lease rates and so in the effort to preserve margin, and we've done a great job with that. As we commented, we're also -- our fulfillment centers are full, and our stores are full of inventory going into the holiday season. So we've overcome a lot of that disruption activity, which I'll let Steve talk about.
As inflation rolls through the economy in the home sector, the number of customers, we believe, who are looking for payment plans will increase because of a retail product like a washer dryer or sofa will go up. And because of that, that upfront cost, particularly for our customers is sometimes unachievable or undoable and so they look for a lease option instead. And we can start having in a $1,000 product, an increase of $150 of retail. We can pass a $10 increase to that customer that they can manage within their budgets over a 24-month period. So we think based on our experience, credit tightening and inflation expands our market as our customers seek an offering other than a cash offering upfront. So we think it's a net-net positive as we move forward, and we feel like we've begun to see some of that in the demand trend. So I'll kick it to Steve just on what he's seeing on the product side of things.
Steve Olsen -- President
Great. Thanks, Douglas. Good morning, Vincent. First on the supply chain side. So we've been very proactive as Douglas referenced in his prepared remarks. We transitioned early away from direct import as we saw those container and ocean freight costs going up and really transitioned to more domestic supplies with our existing suppliers and then went out and found these suppliers. So the merchant team has done a great job on that. We have Woodhaven, which gives us a great view into raw material costs from a furniture standpoint, but allows us to pivot quickly and move to products that you may need to fill our core merchandise.
Secondly, I'll talk on, call it, the pricing side. The team has done a nice job. We're very proactive with our suppliers. We have ongoing daily, weekly conversations with them about what they're seeing and what are trends around raw material costs and we're taking that information. And as we see price increases as Douglas said, like everyone has, we quickly look at our lease rates not only in the products that may have received the cost increases, but across the entire assortment and we balance those prices across the entire price ladder to ensure we're maintaining our margins. So we continue to work through it, but I'm pleased so far with how the merchandising teams, supply chain teams are handling these inflationary environment.
C. Kelly Wall -- Chief Financial Officer
Yes. And lastly, Vincent, on the labor question you had, we're seeing hourly wage rates increase. It's a very competitive market. But the wage rates that we've experienced thus far are consistent with inflationary trends that we're seeing in the overall economy. So nothing in excess.
Vincent Caintic -- Stephens Inc. -- Analyst
Okay. Perfect. Okay. That's very detailed and very helpful. Thank you. Just a quick follow-up. So when I think about the fourth quarter, so normally a busy holiday sales season, some competitors, normal times would be doing, I guess, some sales, like Friday sales up and things. So -- but still not being a normal season and I know, of course, last year, we were in normal season, but anything that -- how you're thinking about the competitive landscape or how basically retail is going to look for the fourth quarter? Thank you.
Steve Olsen -- President
Vincent, this is Steve again. No, we're not going to comment on other retailers. But I will say, as Douglas mentioned in his prepared remarks, and I mentioned a few minutes ago, we're in a great inventory position. We're pleased with the demand across our categories, whether it's furniture, appliances or electronics. We've put together a great marketing plan to really drive our visits in the fourth quarter, which really includes a further investment in digital marketing. Those investments really go out and find new customers, engage with them and then drive them to our websites to experience that great user experience over our website as well as drive them into our stores. So we're ready for the fourth quarter, and we think we've put the necessary plans in place to make that happen.
Vincent Caintic -- Stephens Inc. -- Analyst
Perfect. Very helpful. Thanks so much.
Operator
Thank you. We now have the next question from Anthony Chukumba from Loop Capital Markets. So Anthony, please go ahead when you are ready.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Thank you so much for taking my question. Congrats on the strong quarter as well. So couple questions. First one, very nitpicky, but I have in my notes, at one point, you said lease portfolio was up 6.1% year-over-year ending the fourth quarter then somewhere else I have it up 5.8%. I'm trying to reconcile the two. Maybe I just misheard what you said.
C. Kelly Wall -- Chief Financial Officer
Yes. Hey, Anthony, it's Kelly. I'll clarify that for you. So the 5.8%, that's the total lease portfolio size, right? Well, the 6.1% that is on the same-store set.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. Okay. That's helpful. And then just in terms of -- I was wondering if you were seeing any -- in terms of lease originations, any sort of significant variation between your different major product categories? In other words, like there is appliance is really strong, consumer electronics, furniture. Just wondering is the strength kind of broad based? Are you seeing any particular outperformance or underperformance from a product category perspective?
Steve Olsen -- President
Hi Anthony, this is Steve again. I'll be glad to answer that. So we did see strong results across all three major categories. But to give you a little more specifics, in furniture, upholstery had a really nice Q3. Appliances, laundry, laundry continues to be a strong category with great demand, it has been that way throughout the last year. And then on the electronics side, saw some rebound in TVs and continued performance in gaming.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's helpful. And then if I can just sneak one last one in. I know in the past, you've talked about some of the new product categories that you've been testing in your stores and rolling out of your stores. Just wondering if we could get a quick update on that.
Steve Olsen -- President
Sure, Anthony. It's Steve again. We continue to expand our product assortment. As Douglas mentioned in his prepared remarks, our e-commerce business in this growing marketplace is over 3,000 items, but specifically about what new categories. Those new categories include exercise equipment, small appliances, power tools, home office and electric bikes. But with that, I'll say, we're constantly testing new categories, new items, and you'll see us going forward continue to expand out our assortment and into new categories that even we are not in today. So we're pleased with the results in these two categories, but we're really focused on the long-term in this growing marketplace position.
Anthony Chukumba -- Loop Capital Markets -- Analyst
That's helpful. Good luck with the holiday selling season and keep up the good work.
Steve Olsen -- President
Thanks, Anthony.
Operator
We now have a question from Brad Thomas of KeyBanc Capital Markets. Sir, please go ahead when you are ready.
Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst
Hi, good morning everybody and congrats on a good quarter. I wanted to ask a few follow-up questions here. Maybe first, just starting with the inventory. I apologize if I missed it, but just wondering if you could give us a little bit more color on maybe in percentage terms, how much inventory will be up here as you head into the fourth quarter into the holiday season? And how you're thinking about that sort of at a per-store level, how you're thinking about at the unit level, given that we have seen some inflation? Just more color on that investment in inventory would be great.
C. Kelly Wall -- Chief Financial Officer
Yes. So Brad, it's Kelly. So as we mentioned, we did buy ahead, right? So we're running at higher than normal inventory levels at both our FCs and in our stores. I'd say that on a percentage basis, we're probably running about 15% higher than our target levels, and we really manage it across both our FCs and our stores because as we talked about in the past, our stores serve as many distribution hubs across the US. And so right now, we're pretty full. And we anticipated, as we mentioned, there be some challenges in the fourth quarter. We've had some opportunities to buy inventory kind of ahead of our typical cycle. That combined with the inflationary comments we talked about before, has put us in this higher position. And we expect that will normalize over time.
But we're in a really good position from a balance sheet perspective and a liquidity position. So we've taken advantage of that here. We were able to flex up and we were able to buy. We're going to kind of err[Phonetic] on the side of being a bit heavy going into the end of the fourth quarter. And as we see our customer payment activity and the world hopefully start to normalize a little bit more, then we'll look at optimizing those levels going forward.
Steve Olsen -- President
Hey, Brad, this is Steve. Just to add a little more color. That strong inventory position is across our key categories. So we feel good about where we stand in appliances, where we stand in electronics and where we stand in upholstery -- excuse me, furniture. So we're ready for the fourth quarter. And as we look into the end of the fourth quarter and into Q1, we'll see how we -- what our inventory position will look like as we get into the holiday season. But seems very proactive. And as Kelly said, we're pleased with our inventory position.
Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst
Great. And just to follow-up on all that is connecting the dots. And I think your implied guidance for the fourth quarter would have revenues flat to slightly down year-over-year, down about 2%, if my math is right and inventory is now up a lot. You just mentioned its core categories, they shouldn't have a lot of markdown risk. But just to connect these dots, was this more catch up on inventory, just strategic investments because of how tough the world is to get things for an investor that might ask, are we concerned that we may have risk of discounting in the future? How would you address those questions?
C. Kelly Wall -- Chief Financial Officer
Yes. So Brad, it's Kelly again. It's really the normalization of our customer payment activity, right? So as we go from -- return back to kind of the 87% to 80% range plus the benefit of the centralized decisioning that we're enjoying, it's going to be the decline from what we've seen over the last four quarters. So that's really the driving impact of this, as you think about the impact on the top line as we continue to kind of manage the cost of goods and the flow-through there.
Douglas A. Lindsay -- Chief Executive Officer
Yes. And Brad, just to say another way, is we're not expecting a significant decline in the overall size of our portfolio. It's the rate at which we're renewing that portfolio each month, where the pressure will be on the top line.
Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst
If I could ask one more question just around expenses. Obviously, 2021 has been a year where you're growing against a year where expenses were really lean. And Kelly, can you help us get a better sense of what opex should grow at as we look out to next year in kind of a more normal environment?
C. Kelly Wall -- Chief Financial Officer
Yes. So from the opex perspective, right, the key driver there is going to be labor, right? We continue to run pretty tight, right? And that -- not too kind of our optimal levels. I think a lot of folks in the retail environment are facing these types of challenges. So as we look forward, right now, Brad, it's difficult to estimate kind of into next year specifically, what that's going to look like through a combination of getting our stores back to normal staffing levels combined with, we expect to continue to see some wage pressure, right? But that's going to be a big driver next year as we think about guidance that we'll provide here at the next call.
Steve Olsen -- President
Yes, one additional comment on labor. If you leave the personnel increase we've experienced in this quarter versus prior year quarters, most of that is wage rate, not hours in our stores. Really proud of what we've been able to do over the last few years of making investments to streamline our store labor costs, centralized decisioning has taken a lot of the burden off of our team members in our stores and a lot of the hours that we would spend sort of manually validating. We've also put in servicing platforms. We're now taking over 77% of our payments outside of the store. And so that's really saved on labor. And then we've had other operational efficiencies through self-service and our e-comm site that are allowing us to be more efficient and more productive in the way we go about business. So while we expect to see more hours in our store, particularly next year, as payments normalize, customer payments normalize, there's more effort put into that. We do not believe we'll return to historical levels of store staffing.
Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst
Thanks. Very helpful. Thank you so much.
Operator
We have another question in the phone lines from Jason Haas of Bank of America. Hey, Jason, please go ahead. Awaiting your line.
Jason Haas -- BofA Securities -- Analyst
Great. Thanks. Good morning and thanks for taking my question. So the first one I wanted to ask about is just on the cadence that you saw through the quarter, both in terms of originations and write-offs. I'm curious to know what you saw as it relates to the child tax credit continuing to go out? And then also as the extra unemployment insurance was stopped at the beginning of September?
C. Kelly Wall -- Chief Financial Officer
Yes. Hey, Jason, it's Kelly. So I'd say we did expect to see kind of a slowdown in the customer payment activity through the course of the quarter tied to, as you mentioned, the end of the unemployment stimulus that was provided. And that was offset to some degree by the child tax credit. But as you play through the quarter, as we look at our lease renewal rates, it appears that there was a benefit, clearly at the beginning of the quarter, but that benefit continued to tail, alright, as we moved through Q3.
As we somewhat expected because, again, you've got our customer as we're coming out of a very heavy stimulus hitting environment, right? It wasn't just the checks that they were receiving from the state and federal government, it's also where they haven't paid in other forms of assistance then received through that period of time. So as their life is returning back to somewhat normal from a financial perspective they are seeing other challenges as well and we continue to see our customer payment activity normalize.
Jason Haas -- BofA Securities -- Analyst
Great. Thanks. And then as a follow-up question. I'm curious, it sounds like you're in a pretty good position in terms of inventory, all things considered. So I'm curious if you're thinking about maybe potentially picking up some share, maybe some other retailers are less in stock. You see like there's some opportunity there in fourth quarter and maybe even beyond?
Douglas A. Lindsay -- Chief Executive Officer
Yes. This is Douglas, Jason. We definitely think it's opportunity, like anytime you can have products in your stores, particularly our customers who wants or needs that that product that day, there's an advantage. So I'm really happy with the fact that we've got a lot of product to offer, particularly during our peak season in the fourth quarter. But I'm equally as optimistic about is the inventory levels that we have in our fulfillment centers, which serve our e-comm business. I think we're up, last year's supply chain was very challenging this time, we're up over 80% in our fulfillment centers in terms of inventory levels over last year, and we are ready for the holidays with plenty on our e-com site, 3,000 SKUs and full warehouses. So that bodes well for the demand side of the business.
Jason Haas -- BofA Securities -- Analyst
Good to hear. Thank you.
Operator
We now have the next question from Bobby Griffin from Raymond James. So, I've opened your line. Please go ahead when you are ready.
Bobby Griffin -- Raymond James -- Analyst
Thank you and good morning everybody. Hope everybody is doing well. Regarding -- Kelly, I just kind of want to talk maybe high level and a little bit more long term, but you guys called out at few different times that you're tracking well ahead of the long-term strategy that our plan that we laid out. And when you think about, for instance, merchandise loss ratios normalizing in the next year, are they normalizing better than you would have expected when you kind of spun out when we originally talked?
And I guess what I'm getting at is, is the long-term EBITDA guidance or target out there now maybe more conservative as we sit here and look at the business today with some of the progress you've made.
C. Kelly Wall -- Chief Financial Officer
Yes. Hey, Bobby, it's Kelly. What I'd say is that from that write-off perspective, we continue to expect on the same levels of write-offs this 4% to 5% that we've talked about pretty consistently since just kind of the pre-spin roadshow, right? So there's no changes there. I'd say where we're really ahead is we've grown the business pretty significantly. So our lease portfolio size as we go into 2022 is well ahead of where we had anticipated in that longer-term outlook we provided before. We'll also continue to see really good results out of GenNext, right? And so the performance in those stores are -- as Douglas has mentioned on a few different occasions, that we're exceeding our expectations, repeating our performance. And as that continues, that gives us even more confidence, right, in that longer-term strategy and plan that we laid out.
So those are really the kind of key drivers as we think about getting ahead of the plan from a financial performance perspective. Yes. I'd say that from a margin standpoint, we're still kind of -- I believe that longer term, we're in this 11.5% to 12.5% range. So there's no change there, but it's really kind of accelerating the growth and the overall kind of revenue and EBITDA we're going to achieve in the earlier[Phonetic] years here.
Douglas A. Lindsay -- Chief Executive Officer
And Bobby, one other thing I'd say is our centralized decisioning platform has been a huge asset for us, and we continue to sort of optimize outcomes in that area. And so while the 4.5%, Kelly is exactly right, 4.5% to 5%, we think is the normalized state of our charge offs, we continue to be able to find opportunities to optimize our customer and react to market conditions, which has been a huge, huge asset for us over the last 12 months.
Bobby Griffin -- Raymond James -- Analyst
Okay. That's helpful. And Kelly, just to make sure I kind of understand, the size of the portfolio is getting to your target level quicker than you originally anticipated? Or is the reason the margin is not potentially a little bit higher, just that the labor cost or somewhere else in the P&L has increased a little bit faster given our current environment. I mean I don't think any of us would predict labor the way it was is today 18 months ago or 12 months ago.
C. Kelly Wall -- Chief Financial Officer
Yes, Bobby, great question. So I'd say it's really more of the growth in the business, not the increase in our cost of labor. As Douglas mentioned, right, through centralized decisioning and other investments we've made from a technology perspective, we're seeing that we can operate the stores with less hours than what we have done kind of pre rolling out of RCO[Phonetic]. So while wage pressure will continue to impact the business going forward and right now, we're not seeing -- expecting it to have any material impact relative to what we were thinking kind of pre spin. So it's the growth in the business. It's not changes in margins at this point.
Bobby Griffin -- Raymond James -- Analyst
Okay. Very helpful. And then, I guess, lastly, as I understand you guys will price and then the advantage of your businesses, it's low monthly payment, so it doesn't hit the consumer as much. You can spread it out. Has that started to show up in the comps yet? Or is that more going to be a 4Q, 1Q 2022 type benefit the comps where more products are going to be getting repriced a little bit higher monthly payments.
Douglas A. Lindsay -- Chief Executive Officer
Bobby, this is Douglas. So we hear you, do see in our revenue line and what we're writing into the portfolio, higher ticket this year versus last, we're probably up 3% to 4% in ticket year-over-year. And so that translates. But remember, what we write into our portfolio is only a fraction of what's in our portfolio. So the revenue we recognize is the overall portfolio's ticket versus what we're experiencing now. So you'll begin to see more and more of that sort of translating through to revenue and the same-store revenues as we move forward.
Bobby Griffin -- Raymond James -- Analyst
Okay. Very helpful. I appreciate the detail on the 3% to 4%, Doug. Best of luck here in 4Q and on into 2022.
Douglas A. Lindsay -- Chief Executive Officer
Alright. Thanks, Bobby.
Operator
Thank you. We have no further questions. So I hand it back to Douglas Lindsay to close.
Douglas A. Lindsay -- Chief Executive Officer
Well, thank you for joining us today. Our outstanding performance would not be possible without the hard work and dedication of our entire Aaron's family. As we continue to navigate the ever-changing macro environment, our team members remain focused on continuous innovation, which I hope you heard today, and delivering exceptional value and service to our customers. I remain confident in the execution of our strategy, and we're excited to enter our peak fourth quarter season. So thank you all for joining us today. Have a great day.
Operator
[Operator Closing Remarks]
Duration: 53 minutes
Call participants:
Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations
Douglas A. Lindsay -- Chief Executive Officer
C. Kelly Wall -- Chief Financial Officer
Steve Olsen -- President
Kyle Joseph -- Jefferies -- Analyst
Vincent Caintic -- Stephens Inc. -- Analyst
Anthony Chukumba -- Loop Capital Markets -- Analyst
Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst
Jason Haas -- BofA Securities -- Analyst
Bobby Griffin -- Raymond James -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aarons Inc (NYSE: AAN) Q3 2021 Earnings Call Oct 26, 2021, 8:30 a.m. Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst Jason Haas -- BofA Securities -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The growth in our portfolio of leases generated online is driving improvements to our overall margin performance as we leverage the fixed cost structure of our store and supply chain assets to serve customers that are seeking a virtual shopping experience, low monthly payments and free delivery.
|
Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst Jason Haas -- BofA Securities -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aarons Inc (NYSE: AAN) Q3 2021 Earnings Call Oct 26, 2021, 8:30 a.m. Welcome to The Aaron's Company third quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall, Aaron's Chief Financial Officer.
|
Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst Jason Haas -- BofA Securities -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aarons Inc (NYSE: AAN) Q3 2021 Earnings Call Oct 26, 2021, 8:30 a.m. As I mentioned last quarter, lease payment activity in 2021 has exceeded historical levels due to the government stimulus provided to our customer leading to higher lease renewal rates and lower write-offs as we saw in the third quarter and expect to see over the next three to four quarters, customer payment activity continues to normalize.
|
Operator [Operator Closing Remarks] Duration: 53 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets -- Analyst Jason Haas -- BofA Securities -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aarons Inc (NYSE: AAN) Q3 2021 Earnings Call Oct 26, 2021, 8:30 a.m. As I mentioned last quarter, lease payment activity in 2021 has exceeded historical levels due to the government stimulus provided to our customer leading to higher lease renewal rates and lower write-offs as we saw in the third quarter and expect to see over the next three to four quarters, customer payment activity continues to normalize.
|
8933.0
|
2021-09-14 00:00:00 UTC
|
PROG Holdings, Inc. (AAN) Ex-Dividend Date Scheduled for September 15, 2021
|
AAN
|
https://www.nasdaq.com/articles/prog-holdings-inc.-aan-ex-dividend-date-scheduled-for-september-15-2021-2021-09-14
|
nan
|
nan
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on September 15, 2021. A cash dividend payment of $0.1 per share is scheduled to be paid on October 05, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAN has paid the same dividend. At the current stock price of $26.57, the dividend yield is 1.51%.
The previous trading day's last sale of AAN was $26.57, representing a -29.13% decrease from the 52 week high of $37.49 and a 64.01% increase over the 52 week low of $16.20.
AAN is a part of the Miscellaneous sector, which includes companies such as Gartner, Inc. (IT) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as 8.94%, compared to an industry average of 4.7%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
ProShares Trust (AAN)
Invesco S&P Smallcap 600 Pure Value ETF (AAN).
The top-performing ETF of this group is RZV with an increase of 5.13% over the last 100 days. SMDV has the highest percent weighting of AAN at 1.95%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Miscellaneous sector, which includes companies such as Gartner, Inc. (IT) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as 8.94%, compared to an industry average of 4.7%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on September 15, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAN has paid the same dividend.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAN Dividend History page. The following ETF(s) have AAN as a top-10 holding: ProShares Trust (AAN) Invesco S&P Smallcap 600 Pure Value ETF (AAN).
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAN as a top-10 holding: ProShares Trust (AAN) Invesco S&P Smallcap 600 Pure Value ETF (AAN). PROG Holdings, Inc. (AAN) will begin trading ex-dividend on September 15, 2021.
|
8934.0
|
2021-09-09 00:00:00 UTC
|
Declining Stock and Decent Financials: Is The Market Wrong About The Aaron's Company, Inc. (NYSE:AAN)?
|
AAN
|
https://www.nasdaq.com/articles/declining-stock-and-decent-financials%3A-is-the-market-wrong-about-the-aarons-company-inc.
|
nan
|
nan
|
With its stock down 27% over the past three months, it is easy to disregard Aaron's Company (NYSE:AAN). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. In this article, we decided to focus on Aaron's Company's ROE.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
How To Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Aaron's Company is:
14% = US$105m ÷ US$734m (Based on the trailing twelve months to June 2021).
The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.14 in profit.
What Has ROE Got To Do With Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Aaron's Company's Earnings Growth And 14% ROE
To start with, Aaron's Company's ROE looks acceptable. Be that as it may, the company's ROE is still quite lower than the industry average of 28%. Further research shows that Aaron's Company's net income has shrunk at a rate of 36% over the last five years. Bear in mind, the company does have a high ROE. It is just that the industry ROE is higher. Hence there might be some other aspects that are causing earnings to shrink. For example, it could be that the company has a high payout ratio or the business has allocated capital poorly, for instance.
However, when we compared Aaron's Company's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 14% in the same period. This is quite worrisome.
NYSE:AAN Past Earnings Growth September 9th 2021
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. What is AAN worth today? The intrinsic value infographic in our free research report helps visualize whether AAN is currently mispriced by the market.
Is Aaron's Company Efficiently Re-investing Its Profits?
When we piece together Aaron's Company's low three-year median payout ratio of 5.0% (where it is retaining 95% of its profits), calculated for the last three-year period, we are puzzled by the lack of growth. This typically shouldn't be the case when a company is retaining most of its earnings. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
Only recently, Aaron's Company stated paying a dividend. This likely means that the management might have concluded that its shareholders have a strong preference for dividends.
Conclusion
In total, it does look like Aaron's Company has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a moderate ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. That being so, the latest industry analyst forecasts show that analysts are forecasting a slight improvement in the company's future earnings growth. This could offer some relief to the company's existing shareholders. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The intrinsic value infographic in our free research report helps visualize whether AAN is currently mispriced by the market. With its stock down 27% over the past three months, it is easy to disregard Aaron's Company (NYSE:AAN). NYSE:AAN Past Earnings Growth September 9th 2021 Earnings growth is an important metric to consider when valuing a stock.
|
NYSE:AAN Past Earnings Growth September 9th 2021 Earnings growth is an important metric to consider when valuing a stock. With its stock down 27% over the past three months, it is easy to disregard Aaron's Company (NYSE:AAN). What is AAN worth today?
|
With its stock down 27% over the past three months, it is easy to disregard Aaron's Company (NYSE:AAN). NYSE:AAN Past Earnings Growth September 9th 2021 Earnings growth is an important metric to consider when valuing a stock. What is AAN worth today?
|
With its stock down 27% over the past three months, it is easy to disregard Aaron's Company (NYSE:AAN). NYSE:AAN Past Earnings Growth September 9th 2021 Earnings growth is an important metric to consider when valuing a stock. What is AAN worth today?
|
8935.0
|
2021-07-27 00:00:00 UTC
|
Aarons Inc (AAN) Q2 2021 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-inc-aan-q2-2021-earnings-call-transcript-2021-07-27
|
nan
|
nan
|
Image source: The Motley Fool.
Aarons Inc (NYSE: AAN)
Q2 2021 Earnings Call
Jul 27, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, my name is Lashana and I will be your conference coordinator. At this time, I would like to welcome everyone to The Aaron's Company Second Quarter 2021 Earnings Conference Call.
[Operator Instructions]
I will now turn the call over to Mr. Michael Dickerson, Vice President of Corporate Communications and Investor Relations for Aaron's. You may begin your conference.
10 stocks we like better than The Aaron's Company, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and The Aaron's Company, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations
Thank you and good morning everyone. Welcome to The Aaron's Company second quarter 2021earnings conference call
Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall, Aaron's Chief Financial Officer. After our prepared remarks, we will open the call for questions. Many of you have already seen a copy of our earnings release issued this morning. For those of you that have not, it is available on the Investor Relations section of our website at investor.aarons.com.
During this call, certain statements we make will be forward looking, including our financial performance outlook for 2021. I want to call your attention to our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings release. The Safe Harbor provision identifies risks that may cause actual results to differ materially from the content of our forward-looking statements. Also, please see our Form 10-K for the year ended December 31, 2020, and other periodic filings with the SEC for a description of the risks related to our business that may cause actual results to differ materially from our forward-looking statements.
On today's call, we will be referring to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, non-GAAP net earnings and non-GAAP EPS, which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release.
With that, I will now turn the call over to our CEO, Douglas Lindsay.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Mike, and thank you for joining us today. Once again, I'm pleased to report another quarter of strong operating performance and continued positive momentum at The Aaron's Company.
In the second quarter, we exceeded our expectations for total revenues, same-store revenues and adjusted EBITDA. We also returned significant capital to our shareholders.
Total revenues increased 8.5% year-over-year in our second full quarter as a stand-alone public company, primarily due to the strong underlying business trends and the execution of our strategic priorities. Same-store revenues grew 11.2% in the second quarter of 2021, compared to the prior year; the fifth sequential quarter of positive growth and the eighth positive quarter over the last 10 quarters. The improvement was roughly two-thirds, driven by a larger lease portfolio size entering the second quarter, and the remaining one-third is primarily due to better customer payment activity in the prior year.
Strong demand for our products, combined with the favorable impact of centralized decisioning, and continued but moderating government stimulus to our customers, led to an 8.7% increase in our quarter ending same-store leased portfolio size compared to the prior year.
Our overall lease portfolio continues to perform well. As of the end of the second quarter, approximately 80% of our total lease portfolio is comprised of lease agreements that were originated through our centralized decisioning platforms. This decisioning technology allows us to better match the customers' lease payment with their financial position, with the goal of helping our customers achieve ownership. We believe the continued optimization of our decisioning technology, combined with improved operations, is a significant contributor to our strong lease portfolio performance, resulting in fewer lease merchandise returns and lower write-offs in both our store and e-commerce channels.
Our e-commerce channel continues to grow at a healthy pace, representing 14% of total lease revenues in the quarter. The ongoing investments that we're making in our digital technologies, such as an enhanced online shopping experience, expanded product assortment, greater visibility into products available for Express Delivery and self-service account management, are driving growth in this important channel. The growth in our portfolio of leases generated online is driving improvements to our overall margin performance, as we leverage the fixed cost structure of our store and supply chain assets to serve the large lease-to-own market.
Moving from revenues to earnings.
The company delivered a strong 16.3% adjusted EBITDA growth in the second quarter. This resulted in an adjusted EBITDA margin improvement of 100 basis points from the prior year's second quarter and the fifth straight quarter of year-over-year adjusted EBITDA margin expansion. Continued improvements in operating performance and strong execution by our team gives us the confidence to continue reinvesting into business, to support our multi-year strategy of promoting the Aaron's value proposition, digitizing the customer experience and aligning our store footprint to the customer opportunity.
One of the key investments that I want to highlight is our GenNext real estate strategy that is accelerating, with a growing store pipeline and performance that is exceeding our expectations. As of the end of June, we have 64 GenNext stores and have generated result have generated result for their meeting or exceeding our targeted 25% internal rate of return in five-year payback period. At the end of the quarter, there were several GenNext locations nearing completion, and we expect to open an additional eight stores by the end of July.
Equally as encouraging, monthly lease originations in GenNext stores, open for less than one year, grew at a rate of more than 20 percentage points higher than our average legacy store in the second quarter. As we previously communicated, we plan to open more than 60 GenNext stores in 2021. While we're excited about both the early financial results and the infrastructure we are building to accelerate our progress, we continue to maintain a disciplined approach around our execution of this strategy.
Before I turn the call over to Kelly, let me reiterate how pleased I am with the strong performance of the company in the second quarter.
Over the last several years, we have significantly transformed Aaron's, with the goal of continuing to provide an exceptional customer and team member experience, while also driving greater productivity in our operating model. I remain confident that we have the right team, strategy and market opportunity, which when combined with our financial strength will enable us to deliver long-term growth for all of our stakeholders.
I'll now turn the call over to Kelly to discuss our financial results.
C. Kelly Wall -- Chief Financial Officer
Thank you, Douglas.
For the second quarter of 2021, total revenues were $467.5 million, compared to $431 million for the second quarter of 2020, an increase of 8.5%. This increase was primarily due to the improved quality and increased size of our lease portfolio and continued strong customer payment activity during the quarter. The increase in total revenues was partially offset by the net reduction of 42 company-operated stores and 71 franchised stores for the 15-month period ended June 30, 2021.
On a same-store basis, revenues increased 11.2% in the second quarter, compared to the second quarter in the prior year. As Douglas mentioned, this is our fifth consecutive positive quarter of same-store revenue growth. Leases originating in both our in-store and e-commerce channels contributed to our revenue growth, which was primarily driven by a larger same-store lease portfolio size and continued strong customer payment activity.
Similar to the last four quarters, we believe that customer payment activity has been positively influenced by centralized decisioning and other operational improvements, as well as the positive impact of government stimulus programs to our customers.
E-commerce revenues increased 15.8% versus the second quarter of 2020 and represented 14% of overall lease revenues compared to 12.8% in the second quarter of the prior year. We continue to believe that the strategy and initiatives we are undertaking to optimize our e-commerce offering will allow us to achieve our long-term growth goals in this important channel.
The company ended the second quarter of 2021 with a lease portfolio size for all company-operated stores of $132.8 million, an increase of 7.6%, compared to a lease portfolio size of $123.4 million on June 30 of last year. As a reminder, lease portfolio size represents the next month's total collectible lease payments from our aggregate outstanding customer lease agreements, and management believes this is one of the metrics that is important in understanding the drivers of lease revenue growth in any given period.
Operating expenses, excluding restructuring expenses and spin-related transaction costs, were up $21 million in the quarter, as compared to the second quarter of last year. This increase is due to higher personnel costs and other operating expense, offset by lower provision for lease merchandise write-offs.
Personnel costs increased $3 million in the second quarter of 2021, as compared to the prior year, primarily due to higher labor hours and performance-based compensation in our stores, higher stand-alone public company cost, and comping over the cost cutting measures we took in the second quarter of 2020, partially offset by lower performance-based bonus accruals this year.
The $13.3 million increase in other operating expenses in the quarter is primarily due to the launch of a new marketing campaign during the second quarter of 2021, lower vendor marketing contributions and a reduction in marketing initiatives during the second quarter of 2020 that resulted from cost-cutting measures the company implemented in response to the COVID-19 pandemic.
In addition, we had higher occupancy, store maintenance, and shipping and handling costs in the second quarter of 2021, primarily due to the temporary closure of our showrooms in the second quarter of 2020. The provision for lease merchandise write-offs, as a percentage of lease revenue and fees, decreased to 2.9% for the three months ended June 30, 2021, compared to 3.7% for the comparable period in 2020. The improvement in write-offs was primarily due to the continued favorable impact of our in-store and online decisioning technologies, strong operational execution and the benefit to our customers from government stimulus.
Adjusted EBITDA was $65.3 million for the second quarter of 2021, compared with $56.2 million for the same period in 2020, an increase of $9.1 million, or 16.3%. As a percentage of total revenues, adjusted EBITDA was 14% in the second quarter of 2021, compared to 13% from the same period last year, an improvement of 100 basis points. The increase in adjusted EBITDA margin was primarily due to the item that drove the total revenue's increase and the 80-basis-point reduction in overall write-offs previously discussed.
On a non-GAAP basis, diluted earnings per share were $1.05 in the second quarter of 2021, compared to non-GAAP diluted earnings per share of $0.83 for the same quarter in 2020, an increase of $0.22, or 26.5%.
Cash generated from operating activities was $40 million for the second quarter of 2021, a decline of $117.7 million compared to the second quarter of 2020. This decline was primarily due to higher purchases of lease merchandise to meet increased customer demand and to return the company to more normalized inventory levels.
During the second quarter, the company repurchased approximately 1,166,000 shares of Aaron's common stock for a total purchase price of approximately $38.6 million, and through a 10b5-1 plan, continue to repurchase shares into the first month of the current quarter. For the full year-to-date period ended July 23, 2021, the company has repurchased 1.84 million shares for approximately $57.4 million. As of July 23, we had approximately $92.6 million remaining under the company's $150 million share repurchase program that was approved by our Board in March of this year and ends December 31 of 2023.
To wrap up the material capital allocation activities from the second quarter, in May, the company's Board of Directors declared a regular quarterly cash dividend of $0.10 per share, which was paid on July 6. As of June 30, 2021, the company had a cash balance of $48 million, zero debt, and total available liquidity of $281.5 million, which includes $234 million available under our unsecured revolving credit facility.
Turning to our outlook, we have raised our full-year revenue and earnings outlook for 2021.
For the full year, we have increased our outlook for total revenues to between $1.775 billion and $1.8 billion. We also increased our outlook for adjusted EBITDA to between $215 million and $225 million.
For the full-year 2021, we increased our outlook for the effective tax rate modestly to 26%; did not change depreciation and amortization; and lowered the diluted weighted average share count for the full-year 2021 to 34 million shares. We have not assumed any additional share repurchases beyond what has been previously described.
We have also increased our full-year same-store revenue outlook from a range of 4% to 6% to a range of 6% to 8%. We have increased our expected capital expenditure range by $10 million to a range of $90 million to $100 million. This increase is primarily the result of a higher number of GenNext stores added to the pipeline. We have held our free cash flow estimate for 2021 flat at $90 million to $100 million. The expected adjusted EBITDA increase is offset by higher GenNext pipeline investment and additional lease merchandise inventory purchases.
We believe that the benefit to our customer from government stimulus programs will moderate in the second half of 2021. At the same time, the favorable impact of centralized lease decisioning, our digital servicing platforms and other operational enhancements are contributing to a sustainable improvement in customer payment and write-off activity. More specifically, our outlook assumes customer lease payment activity remains elevated in the second half of 2021, when compared to pre-COVID-19 pandemic levels, but lower than the second half of 2020. Additionally, we expect write-offs will continue to be lower in the second half of 2021, when compared to the pre-COVID-19 pandemic levels, but higher than the second half of 2020.
Finally, our updated outlook assumes no significant deterioration in the current retail environment state of the U.S. economy or global supply chain as compared to their current conditions.
With that, I will now turn the call over to the operator, who will assist with your questions.
Questions and Answers:
Operator
[Operator Instructions]
Your first question comes from the line of Kyle Joseph with Jefferies.
Kyle Joseph -- Jefferies LLC -- Analyst
Hey, good morning guys. Congratulations on a great quarter and thanks for taking my questions.
Kelly, appreciate the color you gave on, kind of, the outlook for credit normalization. I know it's early. But, can you give us a sense for how you expect the changes in the child tax credits to impact the business? Obviously, we have stimulus in the rear view. But, checks from changes in child tax credits started dating this month.
But, just talk about kind of the impacts you see both on the credit as well as on, kind of, the sales and demand side of the business?
C. Kelly Wall -- Chief Financial Officer
Hey, good morning, Kyle. Appreciate the questions.
So, what I had indicated in the prepared remarks is that in the back half of this year, we do expect that between the child tax credit or having enrolled out centralized decisioning, just with the excellent level at where our team is performing right now. But, all these factors are contributing to customer payment activity; we often refer to that as customer renewal percentage. That's going to continue to be elevated or higher than what we saw come before or coming in a pandemic early last year.
At the same time, we don't expect that the liquidity at our customers is going to be as strong as it relates to bylaws provided by the government. So, what we've looked at and I think a lot of companies maybe looking at, is that the enhanced unemployment and other stimulus that our customers benefiting from at the back half of last year, it's just a greater number, it's a larger number. I mean, if you were to take any estimate of the child tax credit benefit and multiply, that accounts 48 [Phonetic].
So, just the magnitude of liquidity of the customer have in support that, if any contribution of stimulus and enhanced unemployment, then we may have benefited from -- and our customers benefited from last year is just not going to be as high as this year. So, we've factored that into our view in outlook, which is different, right, to what we did in the prior two conversations we've had on this.
But, listen, I mean, it's our best estimate at this point in time. We did see a lift last week on the 15, as that liquidity started to come into the market. We're watching that daily, we're paying very close attention to what that's going to look like at the end of the month. That will continue to inform our views on the business for the rest of the year, but it's early. And there are a number of factors that could continue to impact how customer uses that liquidity.
Douglas A. Lindsay -- Chief Executive Officer
Yes. And, Kyle, this is Douglas.
Good morning, I just wanted to tick one other thing, if you may have noted in our comments, now 80% of our lease portfolio has been decisioned through our centralized decisioning algorithms and we believe that the second half of the year will reflect that in propping up our renewal rates and our write-offs as well. So, there is a stimulus going on, but there is also all the investments we've made in optimizing our decisioning, that are reflected in our outlook, and we're really happy with the results of that.
Kyle Joseph -- Jefferies LLC -- Analyst
Got it, very helpful.
One follow-up from me, in this day and age, we remain repeating that, the question about inflation. But, to be honest, it feels like we are actually recently talking about equation of consumer electronics prices not negatively impacting the business. So, can you talk about some of the puts and takes about inflation, in terms of really essentially demand for credit from the consumer for any number of products?
Douglas A. Lindsay -- Chief Executive Officer
Yes. This is Douglas. I'll start and I'll let Kelly and Steve chime in.
But, we're experiencing the same economic impacts as everyone else is, in terms of inflation. We're seeing price increases in our products and the raw materials for our products and fuel, transportation, and to a lesser extent, wages. [Indecipherable], our merchandising team has just done a phenomenal job of keeping pace with all of these cost increases and we are able to pass along a lot of this cost increase to our customers in terms of lease rates. And we're really careful about how we do that and making sure we're hitting the right price points for our consumer.
As inflation increases, we tend to see, historically, pressure on retail. And if you think about it, you've got an appliance cost of $1,000; if you've got a 15% inflation out there in the marketplace, that appliance goes from $1,000 to $1,150, which is all upfront cost for the consumer. In our lease-to-own world, where we're leading with the payment, we may be able to pass on only $10 in additional payment costs to that consumer and spread it over 24 months, which makes it a lot more manageable for the consumers. So, the carry-on effect of that is we see more demand falling into our segment and we get the benefit of an expanding lease-to-own marketplace.
So, I would say if there is any counter there on inflation, as cost of living increases for our customer, we see a bit of pressure on the collection side of the business and renewal side of the business. However, that's historically been in periods without stimulus. And as Kelly mentioned, we will have ongoing stimulus for the foreseeable future.
C. Kelly Wall -- Chief Financial Officer
Yes. And, Kyle, I would add just a few quick things, right.
We're clearly seeing inflation in our business without surprise, right; everybody in the retail world is. Some of the places where it's showing up and we're tying this back to our outlook, right, we are expecting to spend more money on lease merchandise inventory this year. There are two factors driving that. One, we've written more agreements this year, right. So, we're growing our lease portfolio size, so we need to backfill that inventory that we're putting out into our customers' hands. That's a great thing, right. The other side of it is that we're seeing, across all our categories, right, 3% to 8% increases in costs; and those costs include transportation costs as well, both in terms of landing that inventory as well as the cost to complete that last mile delivery from our stores to our customers' homes.
So, those factors are baked into the outlook that we provided; I mean, again, it's our best estimates at this time. It's an interesting world we're all operating in right now. So, we're paying very close attention to all these inputs. The great thing is with centralized decisioning, the improvements in operations, just how dialed in our teams are right now. We feel like we're reacting pretty quickly at least at this point, hopefully, as our performance in the first half as we have demonstrated we've stayed ahead of these curves a little bit.
Kyle Joseph -- Jefferies LLC -- Analyst
Got it, that's it from me. Thanks a lot for answering all my questions.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Kyle. We have a question from the line of Anthony Chukumba with Loop Capital Markets.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Good morning. Thanks for taking my question. Let me add my congratulations. I know this probably won't continue, but I could get used to these double-digit comp store sales increases.
So, I guess my -- just a couple really quick housekeeping questions. What was the ending company-operated and franchised store counts?
C. Kelly Wall -- Chief Financial Officer
Yes, let me give that for you, Anthony. The ending company-operated store count was 1,087 stores and the franchise was 247 stores, bringing us to 1,334 stores total.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Got it, thanks.
And so, my next question, I know it's probably hard to parse this out, but would just love to get even just sort of directionally. It sounds like when you think about lease merchandise write-offs and these much lower levels that we've seen, obviously, a lot of that is all the stimulus money, right, which is actually helpful from a customer payment activity perspective. But, it seems like part of it is the centralized decisioning, right; you're just making better credit decisions. And if you make better credit decisions, all else being equal, you can have lower merchandise write-offs.
So, how do you think about into back half of this year, right, you sort of like -- you've got enhanced unemployment benefits going away and you probably don't have much of an impact from that last round of stimulus. But then, you do have the expanded child tax credit and then you also have the, as you said, 80% of your lease portfolio generated through centralized decisioning. So, I'm almost thinking that could be a wash from a lease merchandise write-off perspective. But, how do you sort of think about that or parse that out?
C. Kelly Wall -- Chief Financial Officer
Yes, it's a great question, Anthony. This is Kelly.
And what I'd say is that, as you kind of look through that, you can see there are a lot of things that are factored into that right now; we operate a fairly complex business in an environment right now, which is probably as complex as anybody in this market has ever seen it. So, appreciate that you're recognizing there are a lot of puts and takes that are kind of going into that.
I think we always say in general, it's kind of coming back to our longer-term view on write-offs, which is that we do continue to expect the business to operate in a 4% to 5% annual write-off percentage. As we think about the back half of this year, I think what we had indicated, again, in the outlook and tried to give you some guidance here in my prepared remarks is that, we do expect write-offs to be lower than kind of our pre-pandemic levels. And that's largely driven by centralized decisioning, the improvements in operations, all the things that you kind of hit on there, as well as the benefit of the child tax credits and liquidity in our customers' hands. At the same time, right, we would expect it to be higher than last year. I mean, just to put into context, right, Q3 of 2020, our write-offs were 2.4%; that was an all-time historic low, as best as any of us can look back and see in this business. So, we're not anticipating that we would be at those levels.
And then, if you look at the back half of the year in total from a write-off perspective, we do expect to be slightly above what we did last year, but again below what we've seen from a historic, kind of, long-term perspective of the business.
Douglas A. Lindsay -- Chief Executive Officer
Yes. Just to reiterate the virtues of centralized decisioning with 80% of our portfolio, having gone through that. And we're effectively sizing the right payments for the customer to set them up for success and also to set ourselves for success, reduce servicing costs, etc. and take the friction out of the relationships. So, we have happier customers ultimately long term and returning customers. And what this all sort of results in is lower product return back to us and lower write-offs, which means we have a healthier portfolio, we have happier customers, and we see a revenue benefit from more on-time payments. And that's further benefited by all the technology we put in place for our customer payments, where they can pay on an app, pay on our my account online. We now have 77% of our customers paying outside of store.
And so, when we make it easier for the customer to pay us and we set them up for success, the centralized decisioning translates to both the top line and the bottom line, which is reflected in our outlook.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Got it, that's very helpful. Keep up the good work, guys.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
C. Kelly Wall -- Chief Financial Officer
Thank you, Anthony.
Operator
Your next question comes from the line of Bobby Griffin with Raymond James.
Bobby Griffin -- Raymond James. -- Analyst
Good morning, buddy. Appreciate you taking my questions and good job this quarter, and congrats on the ongoing strong performance.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
Bobby Griffin -- Raymond James. -- Analyst
I guess the first one, I want to dig into, was the child tax credit. But, not really the impact this year, just based on, is really kind of next year. Based on how I understand it, it lowers the refund partly for the receiver of those tax credits next year; I mean, spread the payment out over this year. So, typically you guys see earlier buyouts, when you get big refunds, I believe.
So, do you think this has the potential to maybe smooth that out a little bit in first half of next year or is the offset that your consumer won't have quite as much liquidity in the hand ahead, just trying to unpack how that might play out and understand it, and first time this has ever happened? So, we're still kind of working from estimates here.
Douglas A. Lindsay -- Chief Executive Officer
No, I appreciate that question, Bobby, and also the kind of color there at the end. I mean, you're spot on working in an environment that no one has ever operated in. So, we're trying to making our best estimates based upon what we know today.
So, first off, I mean, in child tax credit, not only did the recent change in the law kind of accelerate the payment, right, expand the universe of the folks that are receiving it, it also increased kind of these overall size of the total credit with half of it being received over monthly payments in the back half of this year and the rest will be received as part of an individual's annual tax return later next year. So, we'll see how this plays out. But, it's -- roughly half of that will come to our consumers that receive the child tax credit this year in the form of those monthly payments and the other half next year.
So, your question about impact on EPOs, you're right. I mean, our business in that regard has remained consistent in terms of when our customer has more liquidity, they pay us better; and that includes typically an increase in early payouts. So, we would expect to see some of that in the back half of the early, certainly factor that in, as we've thought about portfolio size through the course of the year, the impact that has on revenues, and the rest of the business.
It's still too early for us to really understand what's going to happen on a monthly basis, through the course of this year. And it's still early to start to anticipate what's going to happen in February, March, April next year, in terms of how these dollars are used. But, I think it is important to know what's at the beginning, right. It's -- the absolute dollars provided to this tax credit are significantly higher than what they were kind of coming into this recent change. And so, our view right now is that, that element would have much of an impact as to how the liquidity had impacted early next year, [Indecipherable] our customer tax returns.
Hopefully, that's a little bit helpful color we've provided there.
Bobby Griffin -- Raymond James. -- Analyst
Yes, that's helpful.
And then, I guess, perhaps I want you to unpack the second half EBITDA margins a little bit. And your commentary just there might have helped answer some of it. But, the lease portfolio is performing very well, I think, high-single digits, you referenced, year-over-year.
And then, we look the second half implied EBITDA margins are down notable from the first half and understanding some of that is merchandise write-offs. But, what's some of the other parts because it does seem like the business has a pretty strong momentum right now; good payment, a lot of things have been working on and it seems like there could be some upside to those second half EBITDA margins. I just want to make sure if there is some other areas that we're not missing.
C. Kelly Wall -- Chief Financial Officer
Great question, Bobby.
I mean, two things are kind of going on in that regard, right. One, we are catching up on some of the underspend, if you will, that happened last year, right. We're certainly in Q2 and trail that into Q3 and Q4, tighten our belts more probably in Q4 in a few different areas; one is via marketing, right. And so, we have some catch-up that's going to go on there from an opex perspective.
The other is -- and we're taking this opportunity to invest in the growth of our business, right. I mean, we've often talked in the context of capital allocation around. First and foremost, investing into business as long as we're achieving the appropriate returns and we have that opportunity right now. So, there is an increase in opex around marketing, some personnel, some consulting, some other projects that are going on that we do expect to deliver not only value this year, but value into 2022 and beyond.
Douglas A. Lindsay -- Chief Executive Officer
Bobby, this is Douglas.
The last thing I would mention is, if you look at our renewal percentages of our lease portfolio in the first two quarters of this year, they're running in several 100 basis points ahead of where we've been. And we are going to see that normalize in the latter half of the year, that normalization to higher rates than we were pre-pandemic, but nonetheless lower than we were in the first and second quarter; that's kind of a 100% margin normalization. So, that brings our margins back in line with what the outlook is indicating there.
And as Kelly mentioned, on top of that, we've got some additional investments in the third and fourth quarter that we believe will benefit to 2022.
Bobby Griffin -- Raymond James. -- Analyst
Awesome. I appreciate the details. Congrats again on the good first-half performance.
C. Kelly Wall -- Chief Financial Officer
Thank you, Bobby.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
Operator
Your next question comes from the line of Brad Thomas with KeyBanc Capital Markets.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Hi, thanks, Douglas and Kelly, and congrats on a strong first half here.
I wanted to just follow-up on the last line of questioning around the second-half guidance and maybe talk a little bit more about the revenue side of things. It does feel like you really had some nice momentum in the size of the portfolio. And so, as I go back and look at the numbers, it does feel like your second half has revenues trending down year-over-year and down sequentially. So, just trying to understand how we should be thinking about the puts and takes as we think about revenues?
C. Kelly Wall -- Chief Financial Officer
Yes. Hey, Brad, this is Kelly. Good question.
Again, I would remind you, and I know you know this well, we have a seasonal business and typically, Q3 is our low point, right, in a normal year as it relates to revenue. And last year was anything but normal, as we all know. This year, if we think about, there has been stimulus in the market in Q1, Q2, Q3 and in Q4. So, we should see a somewhat-normal distribution of revenue from quarter to quarter. So, you're right. We're expecting sequentially that from Q2 to Q3 revenue would be down and we would expect that in, kind of, any typical year.
From a year-over-year perspective, and Douglas hit on this, as part of his description of same-store revenues. The biggest driver in Q2 was the increase in our portfolio. And so, we are going to enjoy the benefit of that going into the back half of the year. At the same time, Douglas just mentioned a second ago, the other component to our revenue is customer renewal activity, right; their payments.
And in Q1, -- late Q1 and all of Q2, we were running at customer renewal percentages that were 300 to 400 basis points higher than our pre-pandemic levels. So, we expect to start to normalize, hang on to certainly the benefits that we've driven through centralized decisioning and other operational changes in investments. But, we don't expect to kind of continue to comp over those kinds of levels. So, when you chalk to, kind of, pull that down, revenue to be flat to slightly up from last year on a back-half basis, but not the type of year-over-year growth that you saw kind of 2019 going into 2020, if that helps.
Douglas A. Lindsay -- Chief Executive Officer
Yes. The last thing I would say is, we're also comping over the third and fourth quarter of last year, where we saw strong payment activity as well. So, we've got -- it's really, Brad, the story of great portfolio held, great portfolio size. But, the differences in the revenue is the renewal rates year-over-year.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Got you. That's very helpful.
And to follow-up on Bobby's question about the EBITDA, if you try to bucket [Phonetic] into the write-offs versus the cost inflation that you're seeing, versus some of the investments that you're making into business, could you hazard a guess as to how much, each of those is a headwind for you, based on where you're guiding right now?
C. Kelly Wall -- Chief Financial Officer
Yes. I'd say that they're all kind of a year-over-year basis, contributing to kind of an increase, if you're looking at in terms of absolute dollar cost, but also as a percentage of revenue. So, they're not exactly equally rated, weighted, Brad, but each of those are impacting it across the board there.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Great. Really helpful. Thanks so much and congratulations again.
C. Kelly Wall -- Chief Financial Officer
Thank you.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Brad.
Operator
Your next question comes from the line of Bill Chappell with Truist Securities.
Bill Chappell -- Truist Securities -- Analyst
Thanks, good morning, and congratulations.
Douglas A. Lindsay -- Chief Executive Officer
Hey, Bill.
Bill Chappell -- Truist Securities -- Analyst
Hey, two questions. First on centralized decisioning. Doug, as you said, I guess, we're now at 80%. Where should that number go to and where did -- in the second half, where -- you will see the full kind of benefits from that, or is that really carry over into 2022?
Douglas A. Lindsay -- Chief Executive Officer
Yes. As you may recall, we launched centralized decisioning to our entire store portfolio in April of 2020, as the pandemic hit. We'd had 200 stores or so. Prior to that, that we've been testing for over a year and seeing great results. We rolled it out for the rest of the portfolio then. So, what you're seeing now is this 80%, is effectively we're approving everybody that comes into our store, almost everybody through centralized decisioning.
But, it has to bleed into the portfolio. We have leases that were manually decisioned, pre-roll out, that are rolling off and so. And we would expect to see kind of mid next year us getting to approximately 100% of the portfolio decisions through that. But, we're enjoying the benefit of that this year and we should sort of get that additional 20% over the next six to nine months.
Bill Chappell -- Truist Securities -- Analyst
Got it, thank you.
And then, also, just as I look at kind of year-over-year same lease growth, how much is impact of kind of product selection? That I would think that starting with the lock-down a year ago and for the first couple of quarters after that, it was heavily on home furniture and housing and stuff like that, as we were all going to stuck at home and needed new refrigerators and what have you.
Has that changed materially, and is that affecting the numbers or are we still seeing pretty much the same product selection?
Douglas A. Lindsay -- Chief Executive Officer
Sure. I am going to let Steve Olsen here. Let Steve handle that.
Steve Olsen -- President
Hey, Bill, thanks for the question.
Yes, you've nailed it. We're absolutely seeing very similar product selection and results that we saw throughout Q2. So, seeing nice growth across our entire business, whether it's furniture, appliances or electronics.
Bill Chappell -- Truist Securities -- Analyst
So, no real change in -- on it over the past six to nine months, even as we reopened?
Steve Olsen -- President
No real change as we reopened, as I said in prior calls. So, nice growth in the appliance business early, but that actually continued and we're seeing nice growth in furniture, whether it's upholstery, bedroom, or the associated accessories. So, nice consistent business that we've seen from the start through now.
Bill Chappell -- Truist Securities -- Analyst
Great, thanks so much.
Steve Olsen -- President
Thanks, Bill.
Operator
Your next question comes from the line of Vincent Caintic with Stephens.
Vincent Caintic -- Stephens Inc. -- Analyst
Hey, thanks, good morning.
First question about the GenNext store roll-out. So, seen some great success there. Maybe, if you could talk about, now you're sort of six to nine months into this, any learnings you've had versus when you initially started? And then, I know you talked about the roll-out and trying to be disciplined about it. But, given the success you've had, just sort wondering when you're thinking about the build-out, if you could accelerate it or how you think about potentially expanding that?
Thank you.
Douglas A. Lindsay -- Chief Executive Officer
Sure. Great question, Vincent.
Well, first of all, as you know, GenNext is part of our larger market repositioning strategy that includes reinvesting in stores that we love that are keepers and renovating them; that also includes relocating stores maybe down the street to better center in the markets that we love, and consolidating stores, where we feel like we have multiple stores in a market that needs fewer stores and larger e-com, fewer larger stores. And so, we're doing all the above. We've created pro formas for each of those, that are unique to each of those scenarios. And I'm happy to say that as of today, we've opened 64 stores and we're on track to our expected returns, which as we said are 25% IRR in five-year payback.
We typically look for a payback within the initial lease term of our of our real estate, which is typically five years. And so, we're really happy with that. But, we don't just look at these in terms of how we're doing to our pro forma, we really measure how these stores are doing versus our control group, which are our core stores in our portfolio. And so, we're really happy about this. We're up over 20 points and our recurring revenue written into the portfolio, which is our sales metric over our core portfolio, which is very promising, and our customer accounts are exceeding our expectations.
So, all that being said, we're very bullish. We are moving as fast as we can on this. As I think I've mentioned in prior quarters, we've intentionally been shortening our lease term over the last five years to be able to pivot our portfolio. And so, we're building a robust, analytically driven real estate team who's really hit the ground and they're producing a lot.
We have a lot more stores in our pipeline. The pipeline is building for next year, part of our capex guidance going up, is related to the pipeline of stores we have slated for 2022. And that's really a timing issue because we're going to spend money in advance of our of our openings. Importantly, we can move fast, but we can only move as fast as the real estate market will allow us to move and that's based on sort of market conditions, what availability there is, permitting, landlords and construction timelines.
And so, we've built infrastructure in both our capital allocation and in our opex. Part of the investments, Kelly had mentioned before, in the second half of the year are investments to build squads that we have on the ground to launch these stores, to build more infrastructure in our operations team to make sure we have the people ready to run these stores, and to grand open our marketing functions and making sure we have field teams available to do that. And so, we're building all that into the latter half of the year in our outlook.
And trust me, I'm aligned with you. We want to move -- based on the results we're seeing, we want to move as fast as we can. But, we also want to be judicial and prudent about our site selection and making sure we're making the right decisions.
Vincent Caintic -- Stephens Inc. -- Analyst
Okay. That's really helpful and it's exciting to hear that you're over 20 points [Phonetic] versus the control group, so really appreciate that.
The next is probably just a quick question. But, on this KPI with lease portfolio size, I know you introduced it earlier this year. But maybe, Kelly, if you could help us understand how to use that when we think about modeling the revenues going forward? Thank you.
C. Kelly Wall -- Chief Financial Officer
Yes, Vincent, a great question.
So, what that represents, right, is as we start every month, the size of the revenue that we collect across all of our leases, so if you think about where we ended the quarter, right, $132.8 million; if all of our customers paid 100% of their lease payment, then we would collect $132.8 million in the month of July, right. And so, it's that potential monthly collectible revenue. Now, we don't collect 100%, right. And so, that factors into what we end up reporting in revenue. And then, within the month and then within the three months of a quarter, right, you would typically see growth or change in that portfolio size, which also would impact that revenue calculation for the quarter and for the year.
But, as Douglas mentioned, the growth in that portfolio year-over-year of over 8% contributed to about two-thirds, right, of that 11.2% positive same-store revenue growth that we posted. So, we're trying to help you and others understand how impactful, right, the portfolio is on delivering kind of long-term sustainable growth to the top line of the business.
Douglas A. Lindsay -- Chief Executive Officer
Yeah. And that last third is related to collecting at a higher rate. And we are renewing our customers' at higher rate than we did last year and so. And to the extent we renew at the same rate as last year, our same-store revenues would be closer to the portfolio size.
Vincent Caintic -- Stephens Inc. -- Analyst
Great, that's very helpful. Thanks very much
Operator
Your next question comes from the line of Jason Haas with Bank of America.
Jason Haas -- Bank of America -- Analyst
Great. Good morning, and thanks for taking my question.
Have you had a chance to take a look at how collections have been in states that have pulled back the enhanced unemployment versus states that still have it?
C. Kelly Wall -- Chief Financial Officer
Yes, Jason. Great question and I appreciate the question here.
What I'd say is, yes, we've looked at it. And we watch our business daily at the store level. So, it's something that we're very tuned into. And so, we watch the impact that has had across the portfolio and that certainly has weighed into how we think about the outlook for the back half of the year. We don't typically provide that level of detail, right, kind of down at the state level. So, I'm not going to comment specifically there.
But, what I will say is this, you've heard this from us before, right. In general, when our customer is more liquid, they pay better. And so, it's based on that -- it's a fair assumption to kind of carry that one step further. And I think that in those states that discontinued the enhanced unemployment, we saw a slightly different payment activity than we did in the other states.
Jason Haas -- Bank of America -- Analyst
Okay, got it.
And then, as a follow-up, so you're definitely tracking well above where you had expected, based on the longer-term plan that you outlined during the spin-off, both in terms of top line and margin. So, I'm curious as we think longer term, both like as we get into next year, -- sort of like -- some of this has been driven by external strength. So, I'm curious to know how long that could last for? Do you think there could be some benefit that flows all the way into next year from that?
And then, just in terms of what you're doing internally, it sounds like you're tracking above plan there. So, just kind of curious with what the big pieces are in terms of, relative to where you thought maybe at beginning the year, tracking above them [Phonetic], do you think -- expect to continue?
C. Kelly Wall -- Chief Financial Officer
Yes, Jason. I appreciate that.
So, it's a bit too early for us to provide guidance as it relates to 2022, particularly in light of all the moving parts that we're continuing to see in the market, right. But, what I would say kind of bring it back to that five-year outlook that we did provide before, where we sit today, our lease portfolio size is larger than where we anticipated being halfway through 2021. So, that is clearly something that's going to help kind of carry into 2022 and beyond, in terms of, kind of, where we fall across that five-year execution strategy.
As it relates to the roll-out of our new store format, right, the consolidation in certain markets, we're kind of right on schedule with what we had penciled out. So, the big drivers, next year, right, as we think about kind of resetting relative to that initial five-year plan that we provided is, number one will be that lease portfolio size; number two, it's where are we collecting the [Indecipherable] customer paying, kind of comping off any government stimulus and enhanced unemployment benefits they've provided in 2020 and 2021. But, we certainly are paying close attention to that and will guide you all as we have kind of better clarity into next year and beyond.
Jason Haas -- Bank of America -- Analyst
Got it, really helpful. Thank you.
C. Kelly Wall -- Chief Financial Officer
You're welcome.
Operator
Your next question comes from the line of Tim Vierengel with Northcoast Research.
Tim Vierengel -- Northcoast Research -- Analyst
Good morning. Thank you for taking my question.
This one is for either Steve or Douglas. We view, you guys, e-commerce capabilities as truly a key differentiator versus the rest of the market. Can you highlight just the growth stats, again, you're seeing in that channel, and maybe outline what you guys see as the biggest hurdle for -- to see -- for accelerating growth through that channel? Feel like, I think sequentially, it was about the same growth rates. Just kind of curious what might be big hurdle to see continue accelerating growth in that channel?
Thanks.
Douglas A. Lindsay -- Chief Executive Officer
Tim, this is Douglas. I'll start off and I'll let Steve finish.
We're really happy with the performance of our e-com channel. We had 15% growth in the quarter year-over-year. And while that is a slowing of our overall rate, we are comping over the large increases in our e-com business that we experienced in Q2 of last year when the pandemic hit. And so, we've got, which was up roughly 54%, I believe, during that quarter. And so, while we're comping 15% or 54%, we were happy with that. So, last year -- and I'm sorry that 54% was what we wrote into the portfolio. So, we're still comping at 15% up.
Last year, we saw a surge in demand. I think as the year went on and the pandemic continued, we went through some inventory challenges and have since corrected themselves. And where we stand today, we're super happy with the demand and the optimization of our decisioning on our e-com platform and the technology advancements that we've made -- we're really proud of. And I think they're going to add a ton of value for us as we move forward.
I'll let Steve just talk about those.
Steve Olsen -- President
Tim, thanks for the question.
Just to add to it, I would definitely say the focus of our technology investments is where the opportunity lies. First and foremost, I would call it out, or just [Phonetic] our digital marketing in our pivot to putting more of our marketing dollars in that area to target engaged customers in a broader sense. But, as far as the technology investments, we just need to continue to improve that user experience that we have in our e-commerce platform through content, personalization and functionality. We need to continue to broaden our assortment, give that customer a broad selection of product in our core categories, as well as an expansion into new categories that we're not even in yet.
Additional piece would be around the inventory visibility. Doug has mentioned that we're pleased with our inventory position; in that, inventory that supports our e-commerce business. But, the more and more focus that we put on visibility of that inventory to our customers, so they can get that product faster in their homes.
And the last piece would just be a focus on turning the controls over to the customer and really create that self-service environment that allows them to access their account, manage their account through the mobile app or our online portal, with My Account. So, I would change it more to where the opportunities lie and where we need to continue our focus to drive continued growth.
Tim Vierengel -- Northcoast Research -- Analyst
That's really good color guys. Thank you so much.
Operator
There are no additional questions. At this time, I'll turn the call back over to Mr. Douglas Lindsay for final remarks.
Douglas A. Lindsay -- Chief Executive Officer
Thank you, operator. I really appreciate it.
Let me just conclude by saying, I could not be more pleased with our second quarter results. Consistent strong results don't happen without a lot of hard work by a lot of team members. And I want to thank all of our stakeholders, from our shareholders to our franchise owners to all of our team members in our Aaron's stores, in our Aaron's store support centers, and at Woodhaven manufacturing, whose supporting partnership is critical to our success.
I continue, as you can tell by the tone of this call, to be confident. We have the right team, the right strategy and the right market opportunity to continue to grow our business, to returning capital to shareholders, and to create a rewarding future for our stakeholders and customers. I want to thank you for joining us today and have a wonderful afternoon. Take care.
Operator
[Operator Closing Remarks]
Duration: 58 minutes
Call participants:
Michael P. Dickerson -- Vice President, Corporate Communications & Investor Relations
Douglas A. Lindsay -- Chief Executive Officer
C. Kelly Wall -- Chief Financial Officer
Steve Olsen -- President
Kyle Joseph -- Jefferies LLC -- Analyst
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Bobby Griffin -- Raymond James. -- Analyst
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Bill Chappell -- Truist Securities -- Analyst
Vincent Caintic -- Stephens Inc. -- Analyst
Jason Haas -- Bank of America -- Analyst
Tim Vierengel -- Northcoast Research -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aarons Inc (NYSE: AAN) Q2 2021 Earnings Call Jul 27, 2021, 8:30 a.m. -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bill Chappell -- Truist Securities -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Jason Haas -- Bank of America -- Analyst Tim Vierengel -- Northcoast Research -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The improvement was roughly two-thirds, driven by a larger lease portfolio size entering the second quarter, and the remaining one-third is primarily due to better customer payment activity in the prior year.
|
-- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bill Chappell -- Truist Securities -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Jason Haas -- Bank of America -- Analyst Tim Vierengel -- Northcoast Research -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aarons Inc (NYSE: AAN) Q2 2021 Earnings Call Jul 27, 2021, 8:30 a.m. Welcome to The Aaron's Company second quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall, Aaron's Chief Financial Officer.
|
Aarons Inc (NYSE: AAN) Q2 2021 Earnings Call Jul 27, 2021, 8:30 a.m. -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bill Chappell -- Truist Securities -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Jason Haas -- Bank of America -- Analyst Tim Vierengel -- Northcoast Research -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The company ended the second quarter of 2021 with a lease portfolio size for all company-operated stores of $132.8 million, an increase of 7.6%, compared to a lease portfolio size of $123.4 million on June 30 of last year.
|
-- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bill Chappell -- Truist Securities -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst Jason Haas -- Bank of America -- Analyst Tim Vierengel -- Northcoast Research -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aarons Inc (NYSE: AAN) Q2 2021 Earnings Call Jul 27, 2021, 8:30 a.m. But, not really the impact this year, just based on, is really kind of next year.
|
8936.0
|
2021-07-13 00:00:00 UTC
|
Aaron's (AAN) Shares Enter Oversold Territory
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-shares-enter-oversold-territory-2021-07-13
|
nan
|
nan
|
In trading on Tuesday, shares of Aaron's Co Inc (Symbol: AAN) entered into oversold territory, changing hands as low as $29.54 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Aaron's Co Inc , the RSI reading has hit 28.1 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 49.2, the RSI of WTI Crude Oil is at 61.7, the RSI of Henry Hub Natural Gas is presently 66.5, and the 3-2-1 Crack Spread RSI is 48.9. A bullish investor could look at AAN's 28.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $29.54. Aaron's Co Inc shares are currently trading down about 4.6% on the day.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other oversold energy stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A bullish investor could look at AAN's 28.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. In trading on Tuesday, shares of Aaron's Co Inc (Symbol: AAN) entered into oversold territory, changing hands as low as $29.54 per share. Looking at a chart of one year performance (below), AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $29.54.
|
In trading on Tuesday, shares of Aaron's Co Inc (Symbol: AAN) entered into oversold territory, changing hands as low as $29.54 per share. Looking at a chart of one year performance (below), AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $29.54. A bullish investor could look at AAN's 28.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
|
In trading on Tuesday, shares of Aaron's Co Inc (Symbol: AAN) entered into oversold territory, changing hands as low as $29.54 per share. Looking at a chart of one year performance (below), AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $29.54. A bullish investor could look at AAN's 28.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
|
In trading on Tuesday, shares of Aaron's Co Inc (Symbol: AAN) entered into oversold territory, changing hands as low as $29.54 per share. A bullish investor could look at AAN's 28.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $29.54.
|
8937.0
|
2021-06-17 00:00:00 UTC
|
Aaron's (AAN) Shares Cross Below 200 DMA
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-shares-cross-below-200-dma-2021-06-17
|
nan
|
nan
|
In trading on Thursday, shares of Aaron's Co Inc (Symbol: AAN) crossed below their 200 day moving average of $34.88, changing hands as low as $34.66 per share. Aaron's Co Inc shares are currently trading off about 4% on the day. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $34.82.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Aaron's Co Inc (Symbol: AAN) crossed below their 200 day moving average of $34.88, changing hands as low as $34.66 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $34.82. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Aaron's Co Inc (Symbol: AAN) crossed below their 200 day moving average of $34.88, changing hands as low as $34.66 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $34.82. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Aaron's Co Inc (Symbol: AAN) crossed below their 200 day moving average of $34.88, changing hands as low as $34.66 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $34.82. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Aaron's Co Inc (Symbol: AAN) crossed below their 200 day moving average of $34.88, changing hands as low as $34.66 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $34.82. Aaron's Co Inc shares are currently trading off about 4% on the day.
|
8938.0
|
2021-06-15 00:00:00 UTC
|
PROG Holdings, Inc. (AAN) Ex-Dividend Date Scheduled for June 16, 2021
|
AAN
|
https://www.nasdaq.com/articles/prog-holdings-inc.-aan-ex-dividend-date-scheduled-for-june-16-2021-2021-06-15
|
nan
|
nan
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on June 16, 2021. A cash dividend payment of $0.1 per share is scheduled to be paid on July 06, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 150% increase over prior dividend payment. At the current stock price of $36.37, the dividend yield is 1.1%.
The previous trading day's last sale of AAN was $36.37, representing a -2.99% decrease from the 52 week high of $37.49 and a 124.51% increase over the 52 week low of $16.20.
AAN is a part of the Miscellaneous sector, which includes companies such as Airbnb, Inc. (ABNB) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as -6.95%, compared to an industry average of 20.6%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
Pacer Funds (AAN)
ProShares Trust (AAN)
Invesco S&P Smallcap 600 Pure Value ETF (AAN)
PGIM QMA Strategic Alpha Small-Cap Growth ETF (AAN)
Invesco S&P SmallCap 600 Equal Weight ETF (AAN).
The top-performing ETF of this group is RZV with an increase of 30.2% over the last 100 days. CALF has the highest percent weighting of AAN at 1.88%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Miscellaneous sector, which includes companies such as Airbnb, Inc. (ABNB) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as -6.95%, compared to an industry average of 20.6%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
The following ETF(s) have AAN as a top-10 holding: Pacer Funds (AAN) ProShares Trust (AAN) Invesco S&P Smallcap 600 Pure Value ETF (AAN) PGIM QMA Strategic Alpha Small-Cap Growth ETF (AAN) Invesco S&P SmallCap 600 Equal Weight ETF (AAN). PROG Holdings, Inc. (AAN) will begin trading ex-dividend on June 16, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAN Dividend History page. The following ETF(s) have AAN as a top-10 holding: Pacer Funds (AAN) ProShares Trust (AAN) Invesco S&P Smallcap 600 Pure Value ETF (AAN) PGIM QMA Strategic Alpha Small-Cap Growth ETF (AAN) Invesco S&P SmallCap 600 Equal Weight ETF (AAN).
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAN as a top-10 holding: Pacer Funds (AAN) ProShares Trust (AAN) Invesco S&P Smallcap 600 Pure Value ETF (AAN) PGIM QMA Strategic Alpha Small-Cap Growth ETF (AAN) Invesco S&P SmallCap 600 Equal Weight ETF (AAN). PROG Holdings, Inc. (AAN) will begin trading ex-dividend on June 16, 2021.
|
8939.0
|
2021-06-14 00:00:00 UTC
|
Reminder - Aaron's (AAN) Goes Ex-Dividend Soon
|
AAN
|
https://www.nasdaq.com/articles/reminder-aarons-aan-goes-ex-dividend-soon-2021-06-14
|
nan
|
nan
|
Looking at the universe of stocks we cover at Dividend Channel, on 6/16/21, Aaron's Co Inc (Symbol: AAN) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 7/6/21. As a percentage of AAN's recent stock price of $36.64, this dividend works out to approximately 0.27%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAN is likely to continue, and whether the current estimated yield of 1.09% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $36.55.
Free Report: Top 7%+ Dividends (paid monthly)
In Monday trading, Aaron's Co Inc shares are currently up about 0.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAN is likely to continue, and whether the current estimated yield of 1.09% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $36.55. Looking at the universe of stocks we cover at Dividend Channel, on 6/16/21, Aaron's Co Inc (Symbol: AAN) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 7/6/21.
|
As a percentage of AAN's recent stock price of $36.64, this dividend works out to approximately 0.27%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAN is likely to continue, and whether the current estimated yield of 1.09% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $36.55.
|
Looking at the universe of stocks we cover at Dividend Channel, on 6/16/21, Aaron's Co Inc (Symbol: AAN) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 7/6/21. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAN is likely to continue, and whether the current estimated yield of 1.09% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $16.20 per share, with $37.49 as the 52 week high point — that compares with a last trade of $36.55.
|
Looking at the universe of stocks we cover at Dividend Channel, on 6/16/21, Aaron's Co Inc (Symbol: AAN) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 7/6/21. As a percentage of AAN's recent stock price of $36.64, this dividend works out to approximately 0.27%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAN is likely to continue, and whether the current estimated yield of 1.09% on annualized basis is a reasonable expectation of annual yield going forward.
|
8940.0
|
2021-06-11 00:00:00 UTC
|
Is It Smart To Buy The Aaron's Company, Inc. (NYSE:AAN) Before It Goes Ex-Dividend?
|
AAN
|
https://www.nasdaq.com/articles/is-it-smart-to-buy-the-aarons-company-inc.-nyse%3Aaan-before-it-goes-ex-dividend-2021-06-11
|
nan
|
nan
|
Readers hoping to buy The Aaron's Company, Inc. (NYSE:AAN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. This means that investors who purchase Aaron's Company's shares on or after the 16th of June will not receive the dividend, which will be paid on the 6th of July.
The upcoming dividend for Aaron's Company is US$0.10 per share. If you buy this business for its dividend, you should have an idea of whether Aaron's Company's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Aaron's Company paid out just 3.6% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. The good news is it paid out just 1.4% of its free cash flow in the last year.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:AAN Historic Dividend June 11th 2021
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see Aaron's Company earnings per share are up 7.6% per annum over the last five years. Earnings per share have been growing at a decent rate, and the company is retaining more than three-quarters of its earnings in the business. If profits are reinvested effectively, this could be a bullish combination for future earnings and dividends.
This is Aaron's Company's first year of paying a dividend, which is exciting for shareholders - but it does mean there's no dividend history to examine.
To Sum It Up
From a dividend perspective, should investors buy or avoid Aaron's Company? Earnings per share growth has been growing somewhat, and Aaron's Company is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. It might be nice to see earnings growing faster, but Aaron's Company is being conservative with its dividend payouts and could still perform reasonably over the long run. Overall we think this is an attractive combination and worthy of further research.
In light of that, while Aaron's Company has an appealing dividend, it's worth knowing the risks involved with this stock. In terms of investment risks, we've identified 2 warning signs with Aaron's Company and understanding them should be part of your investment process.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Readers hoping to buy The Aaron's Company, Inc. (NYSE:AAN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. NYSE:AAN Historic Dividend June 11th 2021 Have Earnings And Dividends Been Growing? Aaron's Company paid out just 3.6% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.
|
Readers hoping to buy The Aaron's Company, Inc. (NYSE:AAN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. NYSE:AAN Historic Dividend June 11th 2021 Have Earnings And Dividends Been Growing? The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend.
|
Readers hoping to buy The Aaron's Company, Inc. (NYSE:AAN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. NYSE:AAN Historic Dividend June 11th 2021 Have Earnings And Dividends Been Growing? If you buy this business for its dividend, you should have an idea of whether Aaron's Company's dividend is reliable and sustainable.
|
Readers hoping to buy The Aaron's Company, Inc. (NYSE:AAN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. NYSE:AAN Historic Dividend June 11th 2021 Have Earnings And Dividends Been Growing? If profits are reinvested effectively, this could be a bullish combination for future earnings and dividends.
|
8941.0
|
2021-04-29 00:00:00 UTC
|
Results: The Aaron's Company, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
|
AAN
|
https://www.nasdaq.com/articles/results%3A-the-aarons-company-inc.-exceeded-expectations-and-the-consensus-has-updated-its
|
nan
|
nan
|
The Aaron's Company, Inc. (NYSE:AAN) investors will be delighted, with the company turning in some strong numbers with its latest results. Aaron's Company delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$481m, some 12% above indicated. Statutory EPS were US$1.04, an impressive 86% ahead of forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
NYSE:AAN Earnings and Revenue Growth April 29th 2021
Taking into account the latest results, Aaron's Company's nine analysts currently expect revenues in 2021 to be US$1.76b, approximately in line with the last 12 months. Aaron's Company is also expected to turn profitable, with statutory earnings of US$2.59 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.68b and earnings per share (EPS) of US$1.87 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to US$28.57per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Aaron's Company at US$37.00 per share, while the most bearish prices it at US$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Aaron's Company shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.5% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 0.8% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. It's pretty clear that Aaron's Company's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Aaron's Company's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Aaron's Company. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aaron's Company analysts - going out to 2025, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Aaron's Company (1 makes us a bit uncomfortable!) that you need to be mindful of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The Aaron's Company, Inc. (NYSE:AAN) investors will be delighted, with the company turning in some strong numbers with its latest results. NYSE:AAN Earnings and Revenue Growth April 29th 2021 Taking into account the latest results, Aaron's Company's nine analysts currently expect revenues in 2021 to be US$1.76b, approximately in line with the last 12 months. Aaron's Company delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$481m, some 12% above indicated.
|
NYSE:AAN Earnings and Revenue Growth April 29th 2021 Taking into account the latest results, Aaron's Company's nine analysts currently expect revenues in 2021 to be US$1.76b, approximately in line with the last 12 months. The Aaron's Company, Inc. (NYSE:AAN) investors will be delighted, with the company turning in some strong numbers with its latest results. It's pretty clear that Aaron's Company's revenues are expected to perform substantially worse than the wider industry.
|
NYSE:AAN Earnings and Revenue Growth April 29th 2021 Taking into account the latest results, Aaron's Company's nine analysts currently expect revenues in 2021 to be US$1.76b, approximately in line with the last 12 months. The Aaron's Company, Inc. (NYSE:AAN) investors will be delighted, with the company turning in some strong numbers with its latest results. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.
|
The Aaron's Company, Inc. (NYSE:AAN) investors will be delighted, with the company turning in some strong numbers with its latest results. NYSE:AAN Earnings and Revenue Growth April 29th 2021 Taking into account the latest results, Aaron's Company's nine analysts currently expect revenues in 2021 to be US$1.76b, approximately in line with the last 12 months. Aaron's Company delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$481m, some 12% above indicated.
|
8942.0
|
2021-04-27 00:00:00 UTC
|
Aaron's Inc (AAN) Q1 2021 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-inc-aan-q1-2021-earnings-call-transcript-2021-04-27
|
nan
|
nan
|
Image source: The Motley Fool.
Aaron's Inc (NYSE: AAN)
Q1 2021 Earnings Call
Apr 27, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Thank you for standing by and welcome to the Aaron's Company First Quarter 2021 Earnings Conference Call. [Operator Instructions]
I'd now like to hand the conference over to Michael Dickerson, Vice President of Corporate Communications and Investor Relations for Aaron's. Mr. Dickerson, Please go ahead.
10 stocks we like better than The Aaron's Company, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Aaron's Company, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations
Thank you and good morning, everyone. Welcome to the Aaron's Company first quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall Aaron's Chief Financial Officer. After our prepared remarks, we will open the call for questions.
Many of you have already seen a copy of our earnings release issued this morning. For those of you that have not, it is available on the Investor Relations section of our website at investor.aarons.com.
During this call, certain statements we make will be forward-looking, including our financial performance outlook for 2021. I want to call your attention to our Safe Harbor provision for forward-looking statements that could be found at the end of our earnings release. The Safe Harbor provision identifies risks that may cause actual results to differ materially from the content of our forward-looking statements. Also, please see our Form 10-K for the year ended December 31, 2020, and other periodic filings with the SEC for a description of the risks related to our business that may cause actual results to differ materially from our forward-looking statements.
On today's call, we will be referring to certain non-GAAP financial measures including EBITDA and adjusted EBITDA. Non-GAAP net earnings and non-GAAP EPS, which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release.
With that, I will now turn the call over to our CEO Douglas Lindsay.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Mike and thank you for joining us today. I'm very pleased with the strong start to 2021 and the positive momentum in revenue and margins we delivered in the first quarter, demonstrating the strong operating leverage in our business. Consolidated revenues increased 11.1% year-over-year in our first full quarter as a stand-alone public company. The revenue increase included same-store revenue growth of 14.8% and we reported adjusted EBITDA margin that improved to 15.4% of revenues. This is the first quarter in over a decade that the Company has delivered double-digit same-store revenue growth. Our teams in the field and our store support centers and Woodhaven are performing at a very high level and are energized and engaged.
As I visit Aaron's stores around the country to support our operations team, I'm seeing a strong sense of pride and optimism about our brand and our competitive position. Our team members and customers are embracing the innovation that we are delivering and the dynamic lease-to-own market. Over the last five years, we've significantly transformed the company for the goal of continuing to provide an exceptional customer and team member experience while also driving greater efficiencies in our operating model. I'm proud to say that as of today we have a centralized decisioning platform that provides greater control and predictability resulting in a higher quality lease portfolio.
We have enhanced digital payment platforms that are enabling over 75% of monthly customer payments to be made outside of our stores. We have an industry-leading, fully transactional e-commerce platform that is attracting a new and younger customer, and we have a portfolio of 51 GenNext stores that is currently outperforming our expectations with many more store openings in the pipeline. All of these initiatives are underpinned by the investments that we have made in enhanced analytics and when combined with our more efficient operations are enabling us to deliver strong revenue and earnings growth. These transformations to our business model are contributing to our outstanding performance in the first quarter of 2021.
We are encouraged by the continuing improvement and the quality and size of our same-store lease portfolio, which ended the quarter up 6.2% compared to the end of the first quarter of 2020. This improvement was primarily driven by strong demand for our products, few release merchandise returns, and lower inventory write-offs. In addition, our customer continues to benefit from the ongoing government stimulus, one of the most meaningful contributors to our strong portfolio performance was centralized decisioning, which we implemented across all Company-operated stores in the U.S., in the spring of 2020. Today, nearly 70% of our portfolio is made up of lease agreements that were originated using this technology. Centralized decisioning delivers consistency and predictability in the performance of our lease portfolio. It enables store managers the flexibility to focus their time on growth-oriented activities such as sales and lease servicing. We believe our algorithms provide better outcomes for both the customer and Aaron's with the goal of having a greater number of customers achieve ownership while at the same time reducing our cost to serve. We continue to refine this decisioning across our various channels, and we expect this will continue to drive greater productivity from our lease portfolio.
Another contributor to our strong performance in the quarter was our e-commerce channel, which represented more than 14% of lease revenues. Our e-commerce team has really delivered, driving traffic growth to aarons.com by 12.8% and increasing revenues by 42% in the first quarter as compared to the prior-year quarter. E-commerce lease originations increased as compared to the year-ago quarter despite the significant shift of customer activity through our online platform in March of 2020 as stores closed during the early days of the COVID-19 pandemic.
In addition, e-commerce write-offs improved by more than 50% compared to last year's quarter, primarily as a result of ongoing decisioning optimization, operational enhancements, and strong customer payment activity. Our e-commerce team continues to deliver ongoing improvements through our online customer acquisition, conversion, and servicing capabilities, which is leading to margin growth and continued positive momentum in this important channel. Our e-commerce growth in the quarter is enabled by our stores, which are not just showrooms and service centers but are also last-mile logistics hubs delivering an expanded assortment of products with same or next day delivery.
Finally, our Real estate repositioning and reinvestment strategy is gaining momentum and we expect it will drive future growth. Our new GenNext stores have larger and more modern showrooms, expanded product assortment, and improved brand imaging and digital technologies. To date, we have opened 51 new GenNext stores and have generated results that are meeting or exceeding our targeted internal rate of return equally as encouraging, monthly lease originations in the first quarter. Our plan for 2021 is to plan to open in the second and third quarters. While we're excited about both the early financial results and the infrastructure we're building to accelerate our progress, we continue to maintain a disciplined approach around our execution of this strategy.
Before I turn the call over to Kelly, let me reiterate how pleased I am with the strong performance of our teams and the results we have delivered in the first quarter of this year. We remain focused on our key strategic initiatives of simplifying and digitizing the customer experience, aligning our store footprint to our customer opportunity and promoting the Aaron's value proposition of low payments high approval rates and best-in-class service.
I'll now turn the call over to Kelly Wall to discuss our financial results.
C. Kelly Wall -- Chief Financial Officer
Thank you, Douglas. For the first quarter of 2021, revenues were $481.1 million compared to $432.8 million for the first quarter of 2020, an increase of 11.1%. The increase in revenues was primarily due to the improving quality and increased size of our lease portfolio and strong customer payment activity during the quarter, aided in part by government stimulus and partially offset by the net reduction of 166 Company-operated and franchised stores compared to the prior year.
As Douglas called out earlier, e-commerce revenues were up 42% compared to the first quarter of the prior year and represented 14.2% of overall lease revenues compared to 11.3% in 2020. On a same-store revenue basis, revenues increased 14.8% in the first quarter compared to the prior-year quarter, the first double-digit, same-store revenue growth since 2009, and our fourth consecutive positive quarter. Same-store revenue growth was primarily driven by a larger same-store lease portfolio and strong customer payment activity, including retail sales and early purchase option exercises. We believe this growth is partially a result of the government stimulus programs passed in 2020 and 2021. Additionally, the company ended the first quarter of 2021 with a lease portfolio size for all company operated stores of $128.8 million, an increase of 3.6% compared to the lease portfolio size as of March 31, 2020. Lease portfolio size represents the next month's total collectible lease payments from our aggregate outstanding customer lease agreements. Please see our Form 10-Q filed this morning for additional detail.
Operating expenses excluding restructuring expenses, spin-related transaction costs and the impairment of goodwill and other expenses, which were both recorded in the first quarter of 2020 were down $1.5 million as compared to the first quarter of last year. This decrease was primarily due to a reduction in write-offs, store closures and the impact of the COVID-related reserves recorded in 2020, partially offset by higher personnel costs related to variable performance compensation, higher marketing expenses and an increase in bank and credit card related fees.
Adjusted EBITDA was $73.9 million for the first quarter of 2021 compared with $34.7 million for the same period in 2020, an increase of $39.2 million or 112.9%. As a percentage of total revenues, adjusted EBITDA was 15.4% in the first quarter of 2021 compared with 8% for the same period last year, an improvement of 740 basis points. The improvement in adjusted EBITDA margin was primarily due to the items that drove the total revenues increase and a 310 basis point reduction in overall write-offs to 3.1% of lease revenues, including both improvement in the e-commerce and store origination channels compared to the prior year. The improvement in write-offs was due primarily to the implementation of new decisioning technology, improved operations, the benefit of government stimulus and the impact of COVID-related lease merchandise reserves recorded in the first quarter of 2020 and not repeated in 2021.
On a non-GAAP basis, diluted earnings per share were $1.24 in the first quarter of 2021 compared to non-GAAP diluted earnings per share of $0.30 for the same quarter in 2020, an increase of $0.94 or 313.3%. Cash generated from operating activities was $20.2 million for the first quarter of 2021, a decline of $36.6 million compared to the first quarter of 2020, primarily due to higher inventory purchases, partially offset by higher customer payments and other changes in working capital. During the quarter, the company purchased 252,200 shares of Aaron's common stock for a total purchase price of approximately $6.3 million.
As of the end of the quarter, we had approximately $143.7 million remaining under the company's share repurchase authorization that was approved by our Board on March 3rd of this year. The Company's Board of Directors also declared our first quarterly cash dividend of $0.10 per share last month and we paid the dividend on April 6. As of March 31, 2021 the company had a cash balance of $61.1 million, less than $500,000 of debt and total available liquidity of $295.5 million. Turning to our outlook, based on our performance in the first quarter of 2021 and the passage of the American Rescue Plan Act in March, we have revised our full-year 2021 outlook. For the full year, we expect consolidated revenues of between $1.725 billion and $1.775 billion representing an increase in our revenue outlook of $75 million.
We also expect adjusted EBITDA of between $190 and $205 million, representing an increase in our adjusted EBITDA outlook of $35 million. For the full year 2021, our outlook for the effective tax rate, depreciation and amortization and diluted weighted average share count are unchanged. We have also increased our full-year same-store revenue outlook from a range of 0% to 2% to a range of 4% to 6%. Similar to our original outlook, total revenue and adjusted EBITDA in the first half of 2021 are expected to be higher in the second half of 2021. This outlook assumes no impact from the expansion and acceleration of the child tax credit payments expected to begin in July 2021. Additionally, our updated outlook assumes no significant deterioration in the current retail environment or in the state of the U.S. economy, as compared to its current condition and a continued improvement in global supply chain conditions. With that, I will now turn the call over to the operator who will assist with your questions.
Questions and Answers:
Operator
[Operator Instructions] Anthony Chukumba with Loop Capital Markets, your line is open.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Good morning, thanks for taking my question and wow, I mean just wow, great results. Congrats on that.
C. Kelly Wall -- Chief Financial Officer
Thank you.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
I guess I have a couple of questions. First question, you mentioned, Kelly just mentioned on the supply chain, just wanted you to give us an update, I know supply chain was a bit of headwind late last year. I was wondering if what you're seeing in terms of supply chain now [Technical Issues] market maybe that [Technical Issues] drivers. Thanks.
Douglas A. Lindsay -- Chief Executive Officer
Hey, Anthony. It's Douglas. Thanks for the question. Yeah, I just want to say, I'm really proud of the team. We got a lot of momentum and energy in the business right now and both channels are really performing well. I think in terms of supply chain, we're seeing continued improvement there in our inventory levels, and we definitely have sufficient inventory to run the business right now. I'm going to kick it to Steve Olsen, just to give you a little bit more detail on what's happened in the last quarter and our outlook for supply chain.
Steve Olsen -- President
Yeah, thanks Douglas. Good morning, Anthony. Yeah. As Douglas said, we're seeing continued improvement and that continued throughout Q1 and absolutely supported the high level of demand that we saw across categories. As we look through the balance of the year, we believe we're going to see continued improvement from Q2 to Q3 and it's really now just about fine tuning that inventory across categories and across price points just to get to that exact level we're looking for.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Got it. And then just one, outlook [Technical Issues] but I am going through my notes and you had said when you provided your guidance [Technical Issues] expecting about a 4% to 5% write-off rate in 2021, given the reduction, the write-off rate and given the improvements that you've talked about with centralized decisioning and [Technical Issues]. I was just wondering if you could -- if that guidance could change at all. Thank you.
C. Kelly Wall -- Chief Financial Officer
Yeah, hey, Anthony, it's Kelly. That guidance still kind of holds for the rest of the year. I mean as a reminder, right, as we go through Q3 and certainly into Q4, absent the impact of the changes to the child tax credits, the stimulus is going to start delaying. And so we will kind of model our business to be in that 4% to 5% write-off range as we're fine tuning the optimization of our lease decisioning and so we expect to continue to see that flow through into the P&L.
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Got it. Thanks again and keep up the good work, guys.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
Operator
Kyle Joseph with Jefferies. Your line is open.
Kyle Joseph -- Jeferries LLC -- Analyst
Hey, good morning guys, congratulations on a really, really strong start to the year. I just want to dig into the impact on -- of stimulus on the quarter and I don't know if you can give us kind of the trajectory of the comp between January, February and March and even into April, just based on when we saw stimulus hit. I just want to get a sense for consumer behavior and buyout activity versus new leases, if you could walk us through that?
Douglas A. Lindsay -- Chief Executive Officer
Sure I'll start. It's Douglas. From what we're seeing with the customer, they are more liquid than we've really ever seen. We recognize it's difficult time where there is higher unemployment right now but our customers are receiving cheques and getting stimulus payments and despite the unemployment challenges, they are making more payments than we've seen in a while, more online payments, more customers achieving ownership and there is really strong demand for our product. And you saw that come through in our comp store sales up 14.8%. I would say as we sort of chunk that same-store sales number, I'd say, about a third of that performance is relative to the larger lease portfolio size and that's in part due to lower churn out of our portfolio because of the liquidity in the marketplace, but also because of our centralized decisioning. So that's a third of that and as I mentioned on the call, our same-store lease portfolio is up about 6% in the quarter, which at the end of the quarter, which is a good number. About another third of our same-store comp in this quarter was related to just strong customer payment activity, renewal rates of our customers and our lease portfolio were much higher, and we saw that really spike when the checks came out in March and so that was super helpful. And then about a third of our performance in our comp stores of 14.8% was related to higher retail sales and higher early payouts that we've seen in previous years. And so that's kind of the way we're looking at it. So how much stimulus contributes to each of those pieces. We definitely know the retail sales in EPO was helped by stimulus. It's hard to disaggregate on the payment side and on the lease portfolio side, the contribution of stimulus relative to all the other things we're doing in the business to streamline payments and decision our customer to have a healthier portfolio. We know those are influencing the business and we're really pleased with where the business is today. In terms of outlook, I mean I'll let Kelly really speak to -- as we look at that -- those comps going forward.
C. Kelly Wall -- Chief Financial Officer
Yes, Kyle. So obviously we posted a very strong first quarter and then we're guiding to between 4% and 6% for the year as we see that play out in Qs 2, and 3, and 4. First, want to remind you that for Q3 -- Q3, and Q4, we're comping over nice increase in the last year, right? 7.3% up in Q3 last year, 3.4% up in Q4. So what you're going to see is Q2 will be strong and in Q3 and Q4 will be less than Q2 as that kind of flows through the course of the year, get a little a comp in over. But again, in total that up 4% to 6% for the year, something we're very excited about.
Douglas A. Lindsay -- Chief Executive Officer
Yes, and one thing I also want to mention about the health of the portfolio, since we rolled out centralized decisioning, we have more levers than ever to control our performance and really optimizing performance of our portfolio. The churn or the reduction in our product returns and write-offs that we saw this quarter is nothing new. We've been experiencing that since we rolled out centralized decisioning in April last year, and so when you combine sort of our ability to move the levers up and down and control the health of the portfolio with the strong demand we're seeing, we're optimistic about what we've done in the business and our ability to drive portfolio performance in the future.
Kyle Joseph -- Jeferries LLC -- Analyst
Got it. Very helpful. One follow-up for me. Obviously, you guys have two quarters now as an independent company, going back to the longer-term kind of five-year plan you guys laid out in November. Given the really strong two quarters out of the gate, can you talk about your confidence in executing on that longer-term plan?
C. Kelly Wall -- Chief Financial Officer
Yes, Kyle. It's Kelly. I'd say that we're as confident as we've been at any point since the decision was made to split the two businesses last year. Just the performance across the business, obviously Q1 speaks for itself. But what you're not seeing behind the scenes is us continuing to fine-tune our model, right, and the investments we're making around on the marketing side, the investments we're making around our real estate strategy, the investments we're making in technology, the people that we brought on board. As Douglas mentioned in his prepared remarks, everyone is super excited about where we're at and where we're headed. So yes, I'd say we feel really good about that five-year plan.
Kyle Joseph -- Jeferries LLC -- Analyst
Got it. Congrats again on a good quarter and thanks for answering my questions.
C. Kelly Wall -- Chief Financial Officer
Thank you, Kyle.
Douglas A. Lindsay -- Chief Executive Officer
Thanks, Kyle.
Operator
Alex Moroccia with Berenberg, your line is open.
Alex Moroccia -- Berenberg Capital Markets -- Analyst
Thanks. First one is about your addressable market. In many cases, we've seen consumer balance sheets that are stronger today than pre-pandemic. However, have you seen anything that implies customer credit quality has improved through all the government stimulus?
Douglas A. Lindsay -- Chief Executive Officer
Yes, this is Douglas. Yes, it's tough to say. We've got, we have customers that are graduating. First of all, we believe our market size is roughly the same, we know in recessionary times our market expands, we're in actually very unique times right now because of the stimulus that's in place. What we're seeing with our customers, our customer has more liquidity than they've had in the past. And with that liquidity, they're not necessarily going out and buying more things for cash. They're still using our product offering, which is the lease to get into low monthly payments and they're paying their monthly obligations at a more regular rate. So that's one general thing about the customer. In terms of credit, we are approving more customers. They're are coming in through our portfolio and seeing a higher quality customer in our portfolio and we believe that's happening for two reasons. One, there's just the liquidity out there is making our customer have better credit quality and two, that the -- we have customers coming into our space or falling down into our space from credit tightening up above. So we -- we're seeing definite demand in this space more so than we saw in the past year or two.
Alex Moroccia -- Berenberg Capital Markets -- Analyst
Okay, great, and second, the strength in e-com really stood out to me. Given the amount of online competition, can you remind us how your customer acquisition and retention strategies differ between e-commerce and in-store?
Steve Olsen -- President
Sure. Hey, Alex. This is Steve Olsen. The key difference is on our acquisition strategy. It really starts with our digital marketing efforts. So we are -- continue to invest in direct more of our marketing dollars to these digital marketing efforts and really about targeting the right audience and then engaging them with a relevant content and messaging and then from there it's about giving them a great user experience on our website. We continue to expand our assortment that we offer on our website. We continue to get more visibility to both our inventory, both in our FC, and our stores, and then give them the right functionality to navigate. And that calls the third piece and Douglas has talked about. I'll just mention that e-commerce decisioning engine. It's been the backbone of our e-commerce platform for over five years, and it really helps us to make the right decisions with our customer.
Douglas A. Lindsay -- Chief Executive Officer
Yes, Alex. The last thing I'd say on that is, we feel like we have a real competitive advantage in the e-com. If you think about our embedded infrastructure stores, our stores are not just retail showrooms. They are service centers, and they are last-mile logistics hub. So as we expand our product assortment and find better ways and more efficient ways to convert the customer online, it's a high margin business and we're attracting a new and younger customer, and in many cases, we're getting more and more products online that we can deliver same day or next day. So, that's super encouraging and I'm really proud of the progress the team has made not just in customer acquisition but in conversion and delivery. And it's an exciting channel for us.
Alex Moroccia -- Berenberg Capital Markets -- Analyst
All right, that's helpful. Thank you all.
C. Kelly Wall -- Chief Financial Officer
Thanks, Alex.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
Operator
Jason Hass with Bank of America, your line -- your line is open.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great, thanks for taking my questions. I wanted to dig into the guidance change a little bit. So you had a really strong 1Q, so I'm curious to know how much of that raising guidance was due to heeding expectations you are bidding your plan in 1Q versus whether anything changed with your outlook for 2Q, 3Q, and 4Q.
C. Kelly Wall -- Chief Financial Officer
Yes, great question, Jason. It's Kelly. So certainly, a large part of that raise is the fee that we had in Q1, but that's kind of got to piggyback on some of the things that, Douglas and Steve have been talking about. We continue to see great performance in terms of our customers making payments as well as us driving demand and new agreements. So with the larger portfolio size, the higher customer payment activity and the resulting lower write-off. we felt it was prudent to just kind of take out that outlook, not just for the QNB, but also for the performance that we expect to see through the remainder of the year.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Got it. That's very helpful, and then as a follow-up, can you give a little bit more longer-term. I'm curious, just given the recent strength, if that causes you to change your plans for reducing the store base if you feel like maybe it made sense to us to keep some of the more stores open just given the strong performance. And then I think there has been some questions that I've received just about any potential to accelerate that pace of closures. So I'm curious if anything has changed with regards to that long-term plan?
Douglas A. Lindsay -- Chief Executive Officer
Hey Jason, nothing's really changed. We continue to assess it, but our strategies are the same. Our objective is to have fewer more profitable stores in the same margins we're serving today. So -- but having a bigger storefront presence that's also a logistics hub, servicing hub but also having a growing e-commerce presence and that's not about sort of shrinking to grow. It's effectively being optimizing our markets and being more efficient in our markets, lowering our cost of service, still servicing those markets. And I mean we're super excited about that strategy and as you see during the quarter. I mean we've opened to date 51 stores and that's a combination of renovations in place, repositioning and these 2 to 1 or 3 to1 merge strategies, which in the case of those mergers, we think we're just creating a more efficient store footprint for the markets we're serving.
In terms of moving faster, I do want to call out which I've done in the past. So, we've intentionally shortened lease term over the past few years to be able to pivot our portfolio and we're really are optimally positioned to do that and we're really making great progress there. We have scaled our operations teams and our real estate teams to move faster and we have implementation teams on the ground actually, real time implementing these store roll-outs. However, we're really trying to take a disciplined approach to our site selection, given the long-term commitments of these leases which are, let's call it 5 to 7 years. So, we may do a 100 stores next year, which is approximately 10% of our portfolio, which would effectively be kind of where we are at the end of this year as well. And again, this will be a combination of renovate in place and relocations. But it's, of course, always as with real estate subject to market conditions permitting landlord negotiations and construction timelines which limit us but our efforts will be if this continues to work, which we believe it is and we'll try to accelerate our progress as much as possible in a disciplined way.
Alex Moroccia -- Berenberg Capital Markets -- Analyst
Great, that's very helpful color. Thank you.
C. Kelly Wall -- Chief Financial Officer
Thank you.
Operator
Tim Vierengel with Northcoast Research. Your line is open.
Tim Vierengel -- Northcoast Research -- Analyst
Thank you. I guess, just one quick maybe higher level question just centered around your sense of decisioning commentary and based off maybe my understanding or our team of here, e-commerce write offs versus in-store typically been much higher historically and I was wondering in a normalized environment outside of all this noise from stimulus if you guys think that e-commerce write-offs can be in line with the expected write offs longer term or e-commerce will continue to be held at more risky than brick and mortar. Thanks.
Douglas A. Lindsay -- Chief Executive Officer
Yes. I'm really proud of what the team's accomplished with their e-commerce business and optimizing decisioning there, we've made several changes to our decisioning over the past few years. As you may know, our e-com decisioning, centralized decisioning is sort of more established -- we've had it out there for 5 plus years and really seeing the benefits of that. We don't approve as many customers in e-com, but we're getting smarter about our approvals. Our loss rates there have come down considerably they improve year-over-year about 50% and they continue to improve.
The delta is now much lower than it used to be between in-store and e-com write-offs and -- but I don't think however that they will ever sort of match each other and there's a couple of reasons on e-com, we have a much higher occurrence of new customers as we go and attract a new customer, a new customer naturally has a higher write-off and on the e-com, it's mainly new product, which if you think about our stores have a mix of pre-leased and new products and pre-lease products are more highly depreciated and have a lower book value and so when you're writing off an asset or a piece of inventory on the e-com, it tends to have a higher book value per skew. So combination of new customers and new product always naturally have higher loss rate but we're really, really pleased with the way we're performing there.
Tim Vierengel -- Northcoast Research -- Analyst
Thank you. That's all from me.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
Operator
Brad Thomas with KeyBanc. Your line is open.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Hi, thanks. Good morning. Let me add congrats as well on a great start to the year here.
Douglas A. Lindsay -- Chief Executive Officer
Thank You.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
I just wanted to follow up on that last, sure, well deserved. I just want to follow up on that last question about the write-offs, you're obviously doing some really compelling things like around the central decisioning and so I guess as you kind of piece apart this unusual time we're in where customers are behaving in a much more capable in the year to ahead here, where do you target the write-offs?
C. Kelly Wall -- Chief Financial Officer
And I appreciate you kind of calling that out. I mean, I'd be remiss if we didn't also point to just the great performance of our teams in the field. The centralized decisioning one part of it and important part, but the daily activity that goes on across our teams to work with our customers to ensure that they are in a position to make those payments and to collect on those monthly payments is making a big difference as well. So we're running a much more balanced business today than really, you know I've seen, since I have been here for sure, and that's helping.
As it relates to kind of the longer-term view here, it's very hard for us to kind of parse through the data and understand exactly how much of this improvement is attributed to the government stimulus, but we do know just in looking at our modeling and going off our expectations coming into the cycle with our centralized decisioning that, that piece of the business is performing well and we would expect that to continue. Just a little bit of insight right as we think about the back half of this year and certainly as we start to put our thoughts around the following year. Our expectations is that the business will continue to perform at levels north of what we saw in -- call it that, 2017-'18-'19 fiscal periods and that kind of underlines our confidence that it's as much what we're doing on our end to drive the business forward as it is the increased flexibility that's been provided by the government. So, hopefully that helps a little bit as what we're thinking about longer term and just a reback, I think we've mentioned before, right, our target is 4% to 5% write offs. That's unchanged as we sit here today. That may change going forward as we continue to give -- improve and get even better, allow managing the portfolio centrally, but right now that's what we're -- worked from the global managing of business.
Douglas A. Lindsay -- Chief Executive Officer
Yeah, Brad and I can't emphasize when we talk about our portfolio have been up 6% year-over-year. How big an influence the lower returns and lower write-offs are to the size of the portfolio is not just a P&L metric where we look at net book value about of our revenue reduction in our churn, which is a reduction and returns of write-offs increases the value of our lease portfolio, which is a recurring revenue portfolio we benefit that for that in future periods.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Absolutely, that's really encouraging to hear. I want to follow up on the new store concept as well, Douglas, you gave some comments on it and it sounds like it has some encouraging results. Could you talk a bit more about how you parse out -- how the your stores are doing versus sort of other factors and you talked about -- I think overall store strategy but can you talk more on that about the potential to accelerate their openings?
Douglas A. Lindsay -- Chief Executive Officer
Sure. Yeah, so I mean I think I mentioned we have 51 stores to date, we've been keenly watching their performance, as you might imagine and we measure them on two factors, one is against the pro forma and we've got pro forma expectations that are in terms of buyback in IRR and as I've said, these stores are exceeding our pro forma, but we also look at them versus a control group and early in the sort of rollout of these stores we're really looking at demand curves and kind of how we are driving new originations in these stores and what we're seeing on the demand side is delivery lift that about 19% greater than our legacy stores in the first 12 months.
So that's very encouraging and we're tracking to our pro forma, we're tracking to our targets for capital deployed in our payback periods and so we're really encouraged by that. We'll continue to monitor it as we open more stores, the way we think about these things in the future is it's not a one size fits all, we have a suburban strategy, we have our rural strategy, we have concepts of work in each of those markets. Some of our stores will be larger stores with static showrooms and about I'd say 60% of those that we've built to date are like that. And about 40% will be in smaller markets, we have smaller showrooms we'll still introduce the technology and the footprint in the modern brand image that we wanted to display in those stores. So, we're super excited about that. We've invested heavily in analytics to drive our strategy. We've built a real estate analytics team that -- where we believe we know where our customer is and how to position those stores in markets. We believe we can serve our 700 markets with fewer stores as we've said before and do that efficiently while freeing up working capital and driving earnings growth and free cash flow. So we're very bullish on that initiative and so far, everything's working according to plan.
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
That's, very helpful. Thank you so much.
Douglas A. Lindsay -- Chief Executive Officer
Thank you.
C. Kelly Wall -- Chief Financial Officer
Thanks Brad.
Operator
[Operator Instructions] Bobby Griffin with Raymond James, your line is open.
Bobby Griffin -- Raymond James -- Analyst
Thank you and good morning everybody. Congrats on a good quarter. Appreciate you taking my questions.
Douglas A. Lindsay -- Chief Executive Officer
Thanks Bobby
Bobby Griffin -- Raymond James -- Analyst
The first thing I want to dive into is more just kind of the changing business model here E-commerce continues to mix up very impressive results. As you're seeing that happen, are you able to find and notice incremental labor savings opportunities in the store infrastructure given that bigger and bigger portions of your business is coming from online.
Douglas A. Lindsay -- Chief Executive Officer
Hey Bobby, it's Douglas. I would say generally, yes. But I wouldn't point directly to e-com. E-com's increasing volumes in our store, which is great. Our average customer per stores continues to grow and so we need labor to serve those customers, as you know, e-com has an acquisition channel and what enables our e-com platform is our built-in infrastructure stores and so to the extent we're driving greater volumes we may need more servicing. That being said, however, we're getting leverage on that labor and the technology that we're putting in place is freeing up our people to do more value-added things in the stores, such as selling and are renewing leases. We have definitely seen lower staffing levels this quarter coming out of the pandemic than we have in the past and I attribute that not only to sort of efficiencies in e-com but efficiencies in our payment platforms and efficiencies in our centralized decisioning. Centralized decisioning alone, we took a transaction that used to take 30 to 45 minutes and turned it into a transaction that takes 8 to 10 minutes to do and so we're freeing up capacity for our people to do other things, which is great and not needing as much labor in the stores. That being said, the business continues to grow and so we will prudently scale labor as it grows over time.
Bobby Griffin -- Raymond James -- Analyst
Okay, that's very helpful. And I guess secondly, for me, when you look at great 1Q big EBITDA at be maybe $30 million versus street, increase in the guide as well I think by $35 million. So most of the guidance came from the 1Q numbers lease versus our street model, which could have been off versus how you guys looked at it, but is that just a sign that you think most of the stimulus impact will be contained in 1Q so the favorable impact from the $1400 cheques and things like that will be a mostly 1Q '21 benefit or is there just some conservatism built in there too, because we don't exactly know how the stimulus will play out in the second quarter, anything around how you guys framed up stimulus carrying forward inside that guidance range would be helpful.
C. Kelly Wall -- Chief Financial Officer
Yeah, hey Bobby it's Kelly, a little bit of color there. So I think you hit on a key point that $30 million references versus consensus. That's not -- that would be versus our internal plan. So, as you know, we provide an annual guide. We don't provide quarterly numbers, what I'll tell you is that from in terms of stimulus impact on our customer and then how that impacts us as a company, we believe that the upfront check that they received December and then also working all our we've cheques received recently. That's kind of largely in Q1 and it shows up some degree, varies beginning in Q2. There is a continued benefit associated with enhanced unemployment that's been provided. Obviously unemployment rates are coming down, which is good for us but those customers of ours that rely on the unemployment cheques. We expect them to continue to see elevated levels through August when those cheques run out at least on the government side, or the federal government side of the ledger. So long story short, Q2, Q3 continue to benefit at some level from this enhanced stimulus that we've been seeing. Again, we called it out in our prepared remarks. But what we haven't factored in yet is any impact from the change in the child tax credits, right. But then we do know based upon what the government has said and with the IRS has said is that our customer will start receiving some form of refund in July. What we don't know yet is exactly how that's going to be used here, it could in effect the second tax season. Right. In the course of fiscal year or something our industry has never seen before. So, if you want to think about an area where we're being conservative maybe that it, but I guess we just don't know yet enough to be able to factor that in with any specificity that inform our guidance to you all.
Douglas A. Lindsay -- Chief Executive Officer
Bobby, the only thing I would add to that is when large cheques come out like the $1400 cheques there tends to be different behavior in terms of payouts and other things and then the smaller cheques over time and so we'll wait to see what that looks like a later of part of these are.
Bobby Griffin -- Raymond James -- Analyst
Okay, I appreciate that. That's very helpful. I guess 2 quick follow-ups. I mean, one on the COVID-related reserve that were booked in 2020. Kelly, do you guys already release those or will you release those back to more normal levels at some point?
C. Kelly Wall -- Chief Financial Officer
They're the ones that are specific to write-off of lease merchandise. We've not released them completely, right, I think just as the way our reserve calculations work as we continue to see very strong customer payment activity, and as a result, low write-off activity, that percentage is naturally kind of coming down in terms of the percentage of the portfolio that we're going to get. So it's to be seen how that's going to play out through the course of this year and certainly into next year. And we do expect at some point it will return back to some more normal level of activity by our customer. But to answer your question specifically, we haven't released any material portion of that of the items, just a small piece.
Bobby Griffin -- Raymond James -- Analyst
Okay. Okay, that's helpful. And I guess the last thing for me was the utility on the balance sheet. Just how do you -- you guys great cash balance, no debt basically I mean when you think about using funds for buyback and different things like are you managing for a target liquidity or how are you considering like -- do you want to keep $300 million of liquidity dry powder or anything like that to help us think about how you frame up looking at the balance sheet for buyback in different activities?
C. Kelly Wall -- Chief Financial Officer
Yeah, great question. As we think about our balance sheet right now and specifically the liquidity, the one thing we want to make sure of is that we have as the supply chain continues to normalize, right, which we is going to use cash in the short term, as that happens right. As we continue our real estate repositioning strategy as well as the investments we're making on the technology side, we want to make sure we have adequate capital to fund those strategies, which at $300 million of liquidity, we believe we do and then Douglas mentioned wanting to accelerate as best we can, the execution of those strategies, we kind of run scenarios to say we're able to do that without taking risk of site selection and things like that. We want to make sure we are capital to fund the business. Outside of that, it's just continuing to be opportunistic as to where we see the share price and then just time, right. If you look at Q1, our Board approved the $150 million share repurchase authorization at the beginning of March. So, we had about 3 weeks in the quarter to execute on that plan and so if you start to think about what that might look like over the course of the year. I hope that informs some of the thinking there but we're not targeting anything specifically to inform at. We are kind of taking it on a quarter-by-quarter basis, again with a view toward how we see that liquidity is going to be needed in the upcoming quarters.
Bobby Griffin -- Raymond James -- Analyst
Absolutely, that's very helpful. I appreciate all the details and best of luck here and for 2Q and the rest of the year.
C. Kelly Wall -- Chief Financial Officer
Great, thanks, Bobby.
Douglas A. Lindsay -- Chief Executive Officer
Thanks Bobby.
Operator
There are no further questions at this time, I would now like to turn the call back over to CEO Douglas Lindsay for parting remarks.
Douglas A. Lindsay -- Chief Executive Officer
Thank you. Thank you all for joining us today. Really appreciate it. Really appreciate your interest in Aaron's and as you can tell, we're very excited about the momentum and the strategy for future growth in our business. Want to thank you for your support and we look forward to talking to you again next quarter. Have a great day.
Operator
[Operator Closing Remarks]
Duration: 49 minutes
Call participants:
Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations
Douglas A. Lindsay -- Chief Executive Officer
C. Kelly Wall -- Chief Financial Officer
Steve Olsen -- President
Anthony Chukumba -- Loop Capital Markets LLC -- Analyst
Kyle Joseph -- Jeferries LLC -- Analyst
Alex Moroccia -- Berenberg Capital Markets -- Analyst
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Tim Vierengel -- Northcoast Research -- Analyst
Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst
Bobby Griffin -- Raymond James -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's Inc (NYSE: AAN) Q1 2021 Earnings Call Apr 27, 2021, 8:30 a.m. Operator [Operator Closing Remarks] Duration: 49 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Anthony Chukumba -- Loop Capital Markets LLC -- Analyst Kyle Joseph -- Jeferries LLC -- Analyst Alex Moroccia -- Berenberg Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Tim Vierengel -- Northcoast Research -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. In addition, our customer continues to benefit from the ongoing government stimulus, one of the most meaningful contributors to our strong portfolio performance was centralized decisioning, which we implemented across all Company-operated stores in the U.S., in the spring of 2020.
|
Operator [Operator Closing Remarks] Duration: 49 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Anthony Chukumba -- Loop Capital Markets LLC -- Analyst Kyle Joseph -- Jeferries LLC -- Analyst Alex Moroccia -- Berenberg Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Tim Vierengel -- Northcoast Research -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's Inc (NYSE: AAN) Q1 2021 Earnings Call Apr 27, 2021, 8:30 a.m. Welcome to the Aaron's Company first quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall Aaron's Chief Financial Officer.
|
Operator [Operator Closing Remarks] Duration: 49 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Anthony Chukumba -- Loop Capital Markets LLC -- Analyst Kyle Joseph -- Jeferries LLC -- Analyst Alex Moroccia -- Berenberg Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Tim Vierengel -- Northcoast Research -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's Inc (NYSE: AAN) Q1 2021 Earnings Call Apr 27, 2021, 8:30 a.m. Welcome to the Aaron's Company first quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall Aaron's Chief Financial Officer.
|
Operator [Operator Closing Remarks] Duration: 49 minutes Call participants: Michael P. Dickerson -- Vice President, Corporate Communications and Investor Relations Douglas A. Lindsay -- Chief Executive Officer C. Kelly Wall -- Chief Financial Officer Steve Olsen -- President Anthony Chukumba -- Loop Capital Markets LLC -- Analyst Kyle Joseph -- Jeferries LLC -- Analyst Alex Moroccia -- Berenberg Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Tim Vierengel -- Northcoast Research -- Analyst Bradley B. Thomas -- KeyBanc Capital Markets, Inc. -- Analyst Bobby Griffin -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's Inc (NYSE: AAN) Q1 2021 Earnings Call Apr 27, 2021, 8:30 a.m. Welcome to the Aaron's Company first quarter 2021earnings conference call Joining me this morning are Douglas Lindsay, Aaron's Chief Executive Officer; Steve Olsen, Aaron's President; and Kelly Wall Aaron's Chief Financial Officer.
|
8943.0
|
2021-04-27 00:00:00 UTC
|
Why Aaron's Stock Rocketed 25% in the First Hour of Trading Today
|
AAN
|
https://www.nasdaq.com/articles/why-aarons-stock-rocketed-25-in-the-first-hour-of-trading-today-2021-04-27
|
nan
|
nan
|
What happened
Shares of Aaron's (NYSE: AAN), which operates through 1,400 owned and franchised rent-to-own stores, rose as much as 25% when trading opened on April 27. Roughly an hour in, the enthusiasm hadn't waned very much, with the shares still sitting with a gain of around 20%. The company's premarket earnings report was the big story here.
So what
Aaron's top line came in at $481 million in the first quarter of 2021. That was up roughly 11% from the same period in 2019. Same-store sales, meanwhile, rose an impressive 14.8%, with online revenue growing a strong 42%. E-commerce revenues now account for around 14% of total lease revenues. Adjusted earnings, the bottom line, chimed in at $1.24 per share in the first quarter this year, compared to $0.30 in 2020.
Image source: Getty Images.
Basically there were good results all around, and investors like good news. But there was still another positive in the quarter, given that Aaron's beat Wall Street expectations on the top and bottom lines. Notably, earnings were roughly twice what analysts had been projecting. Investors really like it when a company's earnings results are both good and, essentially, trounce expectations. And on top of that, the company upped its revenue expectations for 2021, notably increasing its same-store sales target from zero to 2% growth up to 4% to 6% growth. So, all in, it's hardly a shock to see the shares rallying strongly in early trading.
Now what
Aaron's is kind of a unique business, offering predominantly low-income consumers the opportunity to rent furniture, electronics, and other things with the potential to eventually buy them. While it is a retailer in some ways, in others it is more like a lender. Long-term investors looking at the positive results today need to dig in a bit more here to ensure they truly understand what Aaron's does, why, and the implications for its business before jumping aboard the stock because of a strong quarterly earnings report. Indeed, if the economy were to sputter for some reason, Aaron's could run into collection headwinds that a more traditional retailer might not face.
10 stocks we like better than The Aaron's Company, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Aaron's Company, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of Aaron's (NYSE: AAN), which operates through 1,400 owned and franchised rent-to-own stores, rose as much as 25% when trading opened on April 27. Now what Aaron's is kind of a unique business, offering predominantly low-income consumers the opportunity to rent furniture, electronics, and other things with the potential to eventually buy them. Long-term investors looking at the positive results today need to dig in a bit more here to ensure they truly understand what Aaron's does, why, and the implications for its business before jumping aboard the stock because of a strong quarterly earnings report.
|
What happened Shares of Aaron's (NYSE: AAN), which operates through 1,400 owned and franchised rent-to-own stores, rose as much as 25% when trading opened on April 27. And on top of that, the company upped its revenue expectations for 2021, notably increasing its same-store sales target from zero to 2% growth up to 4% to 6% growth. Long-term investors looking at the positive results today need to dig in a bit more here to ensure they truly understand what Aaron's does, why, and the implications for its business before jumping aboard the stock because of a strong quarterly earnings report.
|
What happened Shares of Aaron's (NYSE: AAN), which operates through 1,400 owned and franchised rent-to-own stores, rose as much as 25% when trading opened on April 27. Long-term investors looking at the positive results today need to dig in a bit more here to ensure they truly understand what Aaron's does, why, and the implications for its business before jumping aboard the stock because of a strong quarterly earnings report. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Aaron's Company, Inc. wasn't one of them!
|
What happened Shares of Aaron's (NYSE: AAN), which operates through 1,400 owned and franchised rent-to-own stores, rose as much as 25% when trading opened on April 27. Long-term investors looking at the positive results today need to dig in a bit more here to ensure they truly understand what Aaron's does, why, and the implications for its business before jumping aboard the stock because of a strong quarterly earnings report. 10 stocks we like better than The Aaron's Company, Inc.
|
8944.0
|
2021-04-27 00:00:00 UTC
|
Stock Alert: Aaron's Gains 21% After Swinging To Profit
|
AAN
|
https://www.nasdaq.com/articles/stock-alert%3A-aarons-gains-21-after-swinging-to-profit-2021-04-27
|
nan
|
nan
|
(RTTNews) - Aaron's Company, Inc. (AAN) shares are rising on Tuesday morning trade after the company reported profit in the first quarter compared to loss last year. The shares have been on an uptrend since April 22. The company has scheduled to discuss their first quarterearnings callat 8.30 am ET today.
Currently, shares are at $32.00, up 21.07 percent from its previous close of $26.43. The shares have traded in a range of $16.20-$32.92 on average volume of 310,879 for the last 52-week period.
The company reported net earnings of $36.32 million or $1.06 per share, compared to loss of $323.77 million or $9.57 per share last year. Revenue for the quarter increased to $481.05 million from $432.83 million a year ago.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Aaron's Company, Inc. (AAN) shares are rising on Tuesday morning trade after the company reported profit in the first quarter compared to loss last year. The company has scheduled to discuss their first quarterearnings callat 8.30 am ET today. The shares have traded in a range of $16.20-$32.92 on average volume of 310,879 for the last 52-week period.
|
(RTTNews) - Aaron's Company, Inc. (AAN) shares are rising on Tuesday morning trade after the company reported profit in the first quarter compared to loss last year. The company reported net earnings of $36.32 million or $1.06 per share, compared to loss of $323.77 million or $9.57 per share last year. Revenue for the quarter increased to $481.05 million from $432.83 million a year ago.
|
(RTTNews) - Aaron's Company, Inc. (AAN) shares are rising on Tuesday morning trade after the company reported profit in the first quarter compared to loss last year. The company reported net earnings of $36.32 million or $1.06 per share, compared to loss of $323.77 million or $9.57 per share last year. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Aaron's Company, Inc. (AAN) shares are rising on Tuesday morning trade after the company reported profit in the first quarter compared to loss last year. The shares have been on an uptrend since April 22. The company has scheduled to discuss their first quarterearnings callat 8.30 am ET today.
|
8945.0
|
2021-04-06 00:00:00 UTC
|
Calculating The Intrinsic Value Of The Aaron's Company, Inc. (NYSE:AAN)
|
AAN
|
https://www.nasdaq.com/articles/calculating-the-intrinsic-value-of-the-aarons-company-inc.-nyse%3Aaan-2021-04-06
|
nan
|
nan
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Aaron's Company, Inc. (NYSE:AAN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
The calculation
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) forecast
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) US$93.0m US$125.0m US$131.0m US$106.9m US$93.8m US$86.3m US$82.0m US$79.6m US$78.5m US$78.2m
Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ -18.42% Est @ -12.28% Est @ -7.98% Est @ -4.98% Est @ -2.87% Est @ -1.4% Est @ -0.37%
Present Value ($, Millions) Discounted @ 9.3% US$85.1 US$105 US$100 US$74.8 US$60.0 US$50.5 US$43.9 US$39.0 US$35.1 US$32.0
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$624m
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.3%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$78m× (1 + 2.0%) ÷ (9.3%– 2.0%) = US$1.1b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$1.1b÷ ( 1 + 9.3%)10= US$447m
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$1.1b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$26.6, the company appears about fair value at a 15% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
NYSE:AAN Discounted Cash Flow April 6th 2021
Important assumptions
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Aaron's Company as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.3%, which is based on a levered beta of 1.397. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Aaron's Company, we've compiled three pertinent factors you should further research:
Risks: As an example, we've found 2 warning signs for Aaron's Company that you need to consider before investing here.
Future Earnings: How does AAN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Aaron's Company, Inc. (NYSE:AAN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. NYSE:AAN Discounted Cash Flow April 6th 2021 Important assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAN's growth rate compare to its peers and the wider market?
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Aaron's Company, Inc. (NYSE:AAN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. NYSE:AAN Discounted Cash Flow April 6th 2021 Important assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAN's growth rate compare to its peers and the wider market?
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Aaron's Company, Inc. (NYSE:AAN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. NYSE:AAN Discounted Cash Flow April 6th 2021 Important assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAN's growth rate compare to its peers and the wider market?
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The Aaron's Company, Inc. (NYSE:AAN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. NYSE:AAN Discounted Cash Flow April 6th 2021 Important assumptions The calculation above is very dependent on two assumptions. Future Earnings: How does AAN's growth rate compare to its peers and the wider market?
|
8946.0
|
2021-03-16 00:00:00 UTC
|
PROG Holdings, Inc. (AAN) Ex-Dividend Date Scheduled for March 17, 2021
|
AAN
|
https://www.nasdaq.com/articles/prog-holdings-inc.-aan-ex-dividend-date-scheduled-for-march-17-2021-2021-03-16
|
nan
|
nan
|
PROG Holdings, Inc. (AAN) will begin trading ex-dividend on March 17, 2021. A cash dividend payment of $0.1 per share is scheduled to be paid on April 06, 2021. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 122.22% increase over prior dividend payment.
The previous trading day's last sale of AAN was $26.5, representing a -14.52% decrease from the 52 week high of $31 and a 63.58% increase over the 52 week low of $16.20.
AAN is a part of the Technology sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as -35.89%, compared to an industry average of -2.6%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
Invesco S&P Smallcap 600 Pure Value ETF (RZV)
iShares Global 100 ETF (STSB).
The top-performing ETF of this group is RZV with an increase of 70.26% over the last 100 days. It also has the highest percent weighting of AAN at 1.25%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Technology sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). Zacks Investment Research reports AAN's forecasted earnings growth in 2021 as -35.89%, compared to an industry average of -2.6%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. PROG Holdings, Inc. (AAN) will begin trading ex-dividend on March 17, 2021. The previous trading day's last sale of AAN was $26.5, representing a -14.52% decrease from the 52 week high of $31 and a 63.58% increase over the 52 week low of $16.20.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of AAN was $26.5, representing a -14.52% decrease from the 52 week high of $31 and a 63.58% increase over the 52 week low of $16.20. The following ETF(s) have AAN as a top-10 holding: Invesco S&P Smallcap 600 Pure Value ETF (RZV) iShares Global 100 ETF (STSB).
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAN as a top-10 holding: Invesco S&P Smallcap 600 Pure Value ETF (RZV) iShares Global 100 ETF (STSB). PROG Holdings, Inc. (AAN) will begin trading ex-dividend on March 17, 2021.
|
8947.0
|
2021-03-01 00:00:00 UTC
|
Noteworthy Monday Option Activity: MGM, AAN, HWC
|
AAN
|
https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-mgm-aan-hwc-2021-03-01
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in MGM Resorts International (Symbol: MGM), where a total of 49,309 contracts have traded so far, representing approximately 4.9 million underlying shares. That amounts to about 46.9% of MGM's average daily trading volume over the past month of 10.5 million shares. Especially high volume was seen for the $38 strike call option expiring March 05, 2021, with 8,070 contracts trading so far today, representing approximately 807,000 underlying shares of MGM. Below is a chart showing MGM's trailing twelve month trading history, with the $38 strike highlighted in orange:
Aaron's Co Inc (Symbol: AAN) options are showing a volume of 1,648 contracts thus far today. That number of contracts represents approximately 164,800 underlying shares, working out to a sizeable 45.8% of AAN's average daily trading volume over the past month, of 359,520 shares. Especially high volume was seen for the $12.50 strike call option expiring March 19, 2021, with 1,300 contracts trading so far today, representing approximately 130,000 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
And Hancock Whitney Corp (Symbol: HWC) saw options trading volume of 1,798 contracts, representing approximately 179,800 underlying shares or approximately 45.5% of HWC's average daily trading volume over the past month, of 395,060 shares. Particularly high volume was seen for the $40 strike call option expiring April 16, 2021, with 1,769 contracts trading so far today, representing approximately 176,900 underlying shares of HWC. Below is a chart showing HWC's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for MGM options, AAN options, or HWC options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $12.50 strike call option expiring March 19, 2021, with 1,300 contracts trading so far today, representing approximately 130,000 underlying shares of AAN. Below is a chart showing MGM's trailing twelve month trading history, with the $38 strike highlighted in orange: Aaron's Co Inc (Symbol: AAN) options are showing a volume of 1,648 contracts thus far today. That number of contracts represents approximately 164,800 underlying shares, working out to a sizeable 45.8% of AAN's average daily trading volume over the past month, of 359,520 shares.
|
Below is a chart showing MGM's trailing twelve month trading history, with the $38 strike highlighted in orange: Aaron's Co Inc (Symbol: AAN) options are showing a volume of 1,648 contracts thus far today. Below is a chart showing AAN's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Hancock Whitney Corp (Symbol: HWC) saw options trading volume of 1,798 contracts, representing approximately 179,800 underlying shares or approximately 45.5% of HWC's average daily trading volume over the past month, of 395,060 shares. That number of contracts represents approximately 164,800 underlying shares, working out to a sizeable 45.8% of AAN's average daily trading volume over the past month, of 359,520 shares.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Hancock Whitney Corp (Symbol: HWC) saw options trading volume of 1,798 contracts, representing approximately 179,800 underlying shares or approximately 45.5% of HWC's average daily trading volume over the past month, of 395,060 shares. Below is a chart showing MGM's trailing twelve month trading history, with the $38 strike highlighted in orange: Aaron's Co Inc (Symbol: AAN) options are showing a volume of 1,648 contracts thus far today. That number of contracts represents approximately 164,800 underlying shares, working out to a sizeable 45.8% of AAN's average daily trading volume over the past month, of 359,520 shares.
|
Especially high volume was seen for the $12.50 strike call option expiring March 19, 2021, with 1,300 contracts trading so far today, representing approximately 130,000 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Hancock Whitney Corp (Symbol: HWC) saw options trading volume of 1,798 contracts, representing approximately 179,800 underlying shares or approximately 45.5% of HWC's average daily trading volume over the past month, of 395,060 shares. Below is a chart showing HWC's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for MGM options, AAN options, or HWC options, visit StockOptionsChannel.com.
|
8948.0
|
2020-12-31 00:00:00 UTC
|
XLY, RZV: Big ETF Outflows
|
AAN
|
https://www.nasdaq.com/articles/xly-rzv%3A-big-etf-outflows-2020-12-31
|
nan
|
nan
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the The Consumer Discretionary Select Sector SPDR Fund, where 21,000,000 units were destroyed, or a 15.5% decrease week over week. Among the largest underlying components of XLY, in morning trading today AMAZON.COM is down about 0.5%, and Tesla is higher by about 1%.
And on a percentage change basis, the ETF with the biggest outflow was the Invesco S&P SmallCap 600 Pure Value ETF, which lost 930,000 of its units, representing a 27.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RZV, in morning trading today Veritiv is up about 0.6%, and Aarons Holdings is up by about 1.5%.
VIDEO: XLY, RZV: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of XLY, in morning trading today AMAZON.COM is down about 0.5%, and Tesla is higher by about 1%. And on a percentage change basis, the ETF with the biggest outflow was the Invesco S&P SmallCap 600 Pure Value ETF, which lost 930,000 of its units, representing a 27.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RZV, in morning trading today Veritiv is up about 0.6%, and Aarons Holdings is up by about 1.5%.
|
Among the largest underlying components of XLY, in morning trading today AMAZON.COM is down about 0.5%, and Tesla is higher by about 1%. Among the largest underlying components of RZV, in morning trading today Veritiv is up about 0.6%, and Aarons Holdings is up by about 1.5%. VIDEO: XLY, RZV: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the The Consumer Discretionary Select Sector SPDR Fund, where 21,000,000 units were destroyed, or a 15.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the Invesco S&P SmallCap 600 Pure Value ETF, which lost 930,000 of its units, representing a 27.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RZV, in morning trading today Veritiv is up about 0.6%, and Aarons Holdings is up by about 1.5%.
|
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the The Consumer Discretionary Select Sector SPDR Fund, where 21,000,000 units were destroyed, or a 15.5% decrease week over week. Among the largest underlying components of XLY, in morning trading today AMAZON.COM is down about 0.5%, and Tesla is higher by about 1%. And on a percentage change basis, the ETF with the biggest outflow was the Invesco S&P SmallCap 600 Pure Value ETF, which lost 930,000 of its units, representing a 27.3% decline in outstanding units compared to the week prior.
|
8949.0
|
2020-12-03 00:00:00 UTC
|
7 Cheap Stocks to Buy for 2021 That Deserve Recognition
|
AAN
|
https://www.nasdaq.com/articles/7-cheap-stocks-to-buy-for-2021-that-deserve-recognition-2020-12-03
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing in cheap stocks can seem fail-proof. And to be sure, the underlying logic is sound.
Early investors should seek out equities that are fundamentally undervalued, and others will follow as the strength of said equities becomes more apparent. Then the underlying equity rises in price concurrently with demand and investors benefit via price appreciation.
But the world doesn’t work in such easily identifiable patterns. If it — or at least, the investment world as a microcosm of the larger world — did, then Benjamin Graham would be all the rage on Wall Street. Further, many of the growth stocks that dominate our daily media headlines wouldn’t receive much investment interest, because these stocks are anything but “cheap”.
Which leads me to my next point, or rather a question: how can investors objectively define a subjective term like cheap? After all, one consumer might consider a $40,000 vehicle cheap while another finds it prohibitively expensive.
In investing there are many metrics to separate stocks into neat piles, i.e. cheap or expensive. We use terms like value vs. growth, or undervalued and overvalued. But ultimately some sort of objective measure is applied in determining what defines a cheap stock.
Further, these metrics are usually only comparable within sectors, but not across them. For example, it would be unfair to compare the P/E ratio of a burgeoning tech company to that of an established financial company. And it wouldn’t be very informative for investors.
So, step one in identifying cheap stocks is fairly mechanical. Investors simply need to apply accepted value metrics within a given sector or industry category of stocks. Then we simply need to rank them in an ordered way. The result will be lists of cheap stocks ranked by various metrics.
The second step is subjective. Investors then need to determine which undervalued stocks will be recognized and rewarded by the markets. This step requires investors to make qualitative and subjective determinations. So even in value based investing we can’t escape qualitative judgments. There is no such thing in investing.
7 Growth Stocks Flying Under the Radar
Here are 7 cheap stocks to buy for 2021 that deserve recognition:
Humana (NYSE:HUM)
Novo Nordisk (NYSE:NVO)
Aflac (NYSE:AFL)
Aarons Holdings Co. (NYSE:AAN)
CVS Health (NYSE:CVS)
IBM (NYSE:IBM)
Intel (NASDAQ:INTC)
The stocks ahead were identified by value metrics but subjectively judged to have the right stuff for big gains in 2021. Let’s take a look.
Cheap Stocks To Buy For 2021: Humana (HUM)
HUM) office building" width="300" height="169">
Humana is a well known name in the healthcare industry. Based on P/E ratio, the company is among the top quintile of the industry. Value investors can use that metric to categorize HUM stock as cheap. Aside from that, there is a lot to like about the company and its strategy in the broader context of the healthcare plans industry.
The company has seen an increase in revenues throughout 2020. Both Q3 and the entire fiscal year to date have seen an increase in year-over-year revenues. The company has very strong capital allocation abilities as well. Its return on invested capital is 25.61%, which is very good in combination with its weighted average cost of capital of 6.2%.
Importantly, the company has also benefited from the pandemic, which allowed for accelerating certain initiatives. It has been clear for a while that telemedicine is an impending trend in healthcare that will only increase in popularity. The pandemic just accelerated development.
Humana expanded telehealth services and temporarily reimbursed certain patients for such services during the pandemic. This will provide a wealth of data and use cases the company will use to improve and iterate up.
All things considered, this stock is among the cheaper plays in the healthcare plan industry.
Novo Nordisk (NVO)
Source: joreks / Shutterstock.com
Novo Nordisk is among those stocks that fared quite well during the pandemic. NVO stock has risen 15.7% year-to-date, and was quick to rebound out of the pandemic trough to boot.
The company is reasonably well-regarded by Wall Street, which considers it overweight. Novo Nordisk isn’t in the very high percentiles when ranked by traditional value metrics such as PE ratio and PS ratio, for example. On both of those measures, the company is in the top third among industry peers.
Investors worry extreme value metrics, for example a P/E ratio higher than 95% of peers, indicate a company will never be well-regarded by markets. Therefore, some investors argue value metrics which are better than average, but not extreme, may be better. Investors who agree with that logic should take a look at Novo Nordisk.
The company produces therapeutic pharmaceuticals across a range of health issues from diabetes and growth disorders to hormone replacement and hemophilia.
7 Growth Stocks Flying Under the Radar
Through the first three quarters of 2020 the company has increased both overall sales and operating profit by 7%. Free cash flow also jumped by 27% in the same period.
Aflac (AFL)
Source: Ken Wolter / Shutterstock.com
Aflac provides provisional insurance products and has operations in the U.S. and Japan. While the company has a strong P/E ratio, it can also be seen as a cheap stock given its dividend.
Despite the pandemic, the company has continued its 38 year tradition of increasing dividends. In fact, it recently announced that it will increase its dividend payable by 17.9% in Q1 2021.
The company is down about 15% from where it started the year. However, revenues through the first three quarters of the year were on par with the same period 2019. Investors who consider this in combination with its low P/E ratio and a corporate commitment to dividends should see a bullish case emerging.
Back in Q1 Aflac noted that Covid-19 could serve as a useful stress test for the company. Thus far, AFL has fared well, and its three-point model for dealing with the uncertainty presented by the pandemic has succeeded. Further, revenues have remained stable in both Japan and the U.S. from 2019 to 2020.
Aaron’s Holdings (AAN)
AAN) is displayed on a smartphone screen with an American flag in the background." width="300" height="169">
Source: IgorGolovniov / Shutterstock.com
When consumers consider lease-to-own home furnishings and electronics, Aaron’s is probably top of mind. But when investors consider cheap stocks to purchase, Aaron’s is likely not the first name that springs to mind. But perhaps that should change.
One metric of the company that sticks out as being particularly strong is its EV-to-EBITDA ratio of 1.3. This ranks higher than 96% of industry peers. I already mentioned that value metrics far outside the norm can be tricky. And this one could potentially indicate that Aaron’s may not receive love from the markets any time soon. Yet, given that AAN stock has already retraced pandemic losses and is higher year-to-date, investors shouldn’t worry too much.
7 Growth Stocks Flying Under the Radar
Perhaps that’s part of the reason the company has strong analyst support from Wall Street. Of the 10 covering AAN stock, 8 rate it a buy, and 2 as a hold. The stock also carries a modest 4.5 cent dividend. The dividend was increased by half a cent over last quarter, which represents a 12.5% increase.
CVS Health (CVS)
Source: Jonathan Weiss / Shutterstock.com
CVS stock carries P/E, P/B, and P/S ratios that are all in the top 20% of industry peers. And other fundamental financial indicators from this company which should excite investors as well. CVS revenues are up this year compared to last. That is true of both Q3 and year-to-date revenues in 2020 over 2019.
A bull thesis for CVS stock might go something like this. The company has strong valuation fundamentals and revenues that exceed those of last year. So given that the stock is still down 8.5% YTD, there’s plenty of room for it to rise much higher.
CVS has been central to the telehealth revolution, along with Humana, also on this list. Here is a good excerpt from the company site explaining the transformation:
“In the first quarter of 2020, virtual visits through MinuteClinic® locations grew about 600% over the same quarter in 2019. Aetna also experienced a dramatic increase in daily telehealth engagements. Going forward, telehealth will be an integrated part of an individual’s overall health care journey, says Pellegrini (a CVS telehealth executive), citing CVS Health’s unique combination of Aetna’s broad network of health care providers and its nearly 10,000 retail pharmacies in communities across the United States.”
IBM (IBM)
Source: JHVEPhoto / Shutterstock.com
IBM is a stock that many pundits have been watching for a long time. The question is fairly simple: is this a relic of a bygone era, or a company poised to rise again? Investors who fall on either side of that argument will surely admit that the company does look like a bargain currently. Both IBM’s P/E ratio and EV-to-EBITDA are in the top third of industry peers.
Analysts consider EV-to-EBITDA to present a more complete picture of a company given it comprises more data. And the P/E ratio is the de facto measure of value in many circles. Regardless, IBM stock shows strongly on both measures, and taken together these indicate that the stock is presently cheap.
7 Growth Stocks Flying Under the Radar
IBM is still down year-to-date. Some investors will see this as bad, while others recognize it as an opportunity. The company has been migrating toward a cloud model over previous, less-agile models. Markets still view IBM as a legacy IT player, but that could change. Wall Street remains uncertain, but as its IT cloud is further built out and more widely adopted, the company has a chance to regain its former strength.
Intel (INTC)
Source: Pavel Kapysh / Shutterstock.com
Intel is a great cheap stock in the red-hot semiconductor sector., competing with the likes of Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD). Intel has traditionally been the dominant name in the industry but was overtaken by Nvidia riding the graphics chip boom back in July.
One look at P/E ratios for these three companies today shows a stark contrast therebetween. INTC stock carries a 9.3 P/E ratio, better than 92% of the industry. By comparison, NVDA and AMD stock possess P/E ratios of 86.8 and 117.8, respectively, making them more expensive than 80 and 90% of their peers.
Many have counted Intel out after it fell behind Nvidia and then delayed 7 nanometer chip releases. Taiwan Semiconductor Manufacturing (NYSE:TSM) already produces 5 nanometer chips at large scale. That all made for a bad 2020 for INTC stock.
The company is focusing on addressing 30% of the semiconductor industry now rather than maintaining a dominant position in CPUs. As it redirects and realigns resources and assets toward that focus, expect INTC stock to rise.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Cheap Stocks to Buy for 2021 That Deserve Recognition appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
7 Growth Stocks Flying Under the Radar Here are 7 cheap stocks to buy for 2021 that deserve recognition: Humana (NYSE:HUM) Novo Nordisk (NYSE:NVO) Aflac (NYSE:AFL) Aarons Holdings Co. (NYSE:AAN) CVS Health (NYSE:CVS) Aaron’s Holdings (AAN) AAN) is displayed on a smartphone screen with an American flag in the background." Yet, given that AAN stock has already retraced pandemic losses and is higher year-to-date, investors shouldn’t worry too much.
|
7 Growth Stocks Flying Under the Radar Here are 7 cheap stocks to buy for 2021 that deserve recognition: Humana (NYSE:HUM) Novo Nordisk (NYSE:NVO) Aflac (NYSE:AFL) Aarons Holdings Co. (NYSE:AAN) CVS Health (NYSE:CVS) Aaron’s Holdings (AAN) AAN) is displayed on a smartphone screen with an American flag in the background." Yet, given that AAN stock has already retraced pandemic losses and is higher year-to-date, investors shouldn’t worry too much.
|
7 Growth Stocks Flying Under the Radar Here are 7 cheap stocks to buy for 2021 that deserve recognition: Humana (NYSE:HUM) Novo Nordisk (NYSE:NVO) Aflac (NYSE:AFL) Aarons Holdings Co. (NYSE:AAN) CVS Health (NYSE:CVS) Aaron’s Holdings (AAN) AAN) is displayed on a smartphone screen with an American flag in the background." Yet, given that AAN stock has already retraced pandemic losses and is higher year-to-date, investors shouldn’t worry too much.
|
7 Growth Stocks Flying Under the Radar Here are 7 cheap stocks to buy for 2021 that deserve recognition: Humana (NYSE:HUM) Novo Nordisk (NYSE:NVO) Aflac (NYSE:AFL) Aarons Holdings Co. (NYSE:AAN) CVS Health (NYSE:CVS) Aaron’s Holdings (AAN) AAN) is displayed on a smartphone screen with an American flag in the background." Yet, given that AAN stock has already retraced pandemic losses and is higher year-to-date, investors shouldn’t worry too much.
|
8950.0
|
2020-11-18 00:00:00 UTC
|
Notable Wednesday Option Activity: AAN, BIIB, VRNT
|
AAN
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aan-biib-vrnt-2020-11-18
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aarons Holdings Co Inc (Symbol: AAN), where a total volume of 2,312 contracts has been traded thus far today, a contract volume which is representative of approximately 231,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.8% of AAN's average daily trading volume over the past month, of 483,845 shares. Particularly high volume was seen for the $70 strike call option expiring December 18, 2020, with 860 contracts trading so far today, representing approximately 86,000 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $70 strike highlighted in orange:
Biogen Inc (Symbol: BIIB) saw options trading volume of 12,917 contracts, representing approximately 1.3 million underlying shares or approximately 47.5% of BIIB's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $330 strike call option expiring December 18, 2020, with 1,417 contracts trading so far today, representing approximately 141,700 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $330 strike highlighted in orange:
And Verint Systems, Inc (Symbol: VRNT) options are showing a volume of 1,662 contracts thus far today. That number of contracts represents approximately 166,200 underlying shares, working out to a sizeable 47.1% of VRNT's average daily trading volume over the past month, of 352,675 shares. Particularly high volume was seen for the $55 strike call option expiring December 18, 2020, with 1,002 contracts trading so far today, representing approximately 100,200 underlying shares of VRNT. Below is a chart showing VRNT's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for AAN options, BIIB options, or VRNT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $70 strike call option expiring December 18, 2020, with 860 contracts trading so far today, representing approximately 86,000 underlying shares of AAN. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aarons Holdings Co Inc (Symbol: AAN), where a total volume of 2,312 contracts has been traded thus far today, a contract volume which is representative of approximately 231,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.8% of AAN's average daily trading volume over the past month, of 483,845 shares.
|
Particularly high volume was seen for the $70 strike call option expiring December 18, 2020, with 860 contracts trading so far today, representing approximately 86,000 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $70 strike highlighted in orange: Biogen Inc (Symbol: BIIB) saw options trading volume of 12,917 contracts, representing approximately 1.3 million underlying shares or approximately 47.5% of BIIB's average daily trading volume over the past month, of 2.7 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aarons Holdings Co Inc (Symbol: AAN), where a total volume of 2,312 contracts has been traded thus far today, a contract volume which is representative of approximately 231,200 underlying shares (given that every 1 contract represents 100 underlying shares).
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aarons Holdings Co Inc (Symbol: AAN), where a total volume of 2,312 contracts has been traded thus far today, a contract volume which is representative of approximately 231,200 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAN's trailing twelve month trading history, with the $70 strike highlighted in orange: Biogen Inc (Symbol: BIIB) saw options trading volume of 12,917 contracts, representing approximately 1.3 million underlying shares or approximately 47.5% of BIIB's average daily trading volume over the past month, of 2.7 million shares. That number works out to 47.8% of AAN's average daily trading volume over the past month, of 483,845 shares.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $70 strike highlighted in orange: Biogen Inc (Symbol: BIIB) saw options trading volume of 12,917 contracts, representing approximately 1.3 million underlying shares or approximately 47.5% of BIIB's average daily trading volume over the past month, of 2.7 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aarons Holdings Co Inc (Symbol: AAN), where a total volume of 2,312 contracts has been traded thus far today, a contract volume which is representative of approximately 231,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.8% of AAN's average daily trading volume over the past month, of 483,845 shares.
|
8951.0
|
2020-11-12 00:00:00 UTC
|
Aarons Holdings Company, Inc. (AAN) Ex-Dividend Date Scheduled for November 13, 2020
|
AAN
|
https://www.nasdaq.com/articles/aarons-holdings-company-inc.-aan-ex-dividend-date-scheduled-for-november-13-2020-2020-11
|
nan
|
nan
|
Aarons Holdings Company, Inc. (AAN) will begin trading ex-dividend on November 13, 2020. A cash dividend payment of $0.045 per share is scheduled to be paid on November 20, 2020. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. At the current stock price of $59.86, the dividend yield is .3%.
The previous trading day's last sale of AAN was $59.86, representing a -6.63% decrease from the 52 week high of $64.11 and a 360.28% increase over the 52 week low of $13.01.
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). AAN's current earnings per share, an indicator of a company's profitability, is -$3.18. Zacks Investment Research reports AAN's forecasted earnings growth in 2020 as 29.13%, compared to an industry average of 3%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
Etho Climate Leadership U.S. ETF (ETHO)
Direxion Fallen Knives ETF (NIFE)
AGFiQ U.S. Market Neutral Value Fund (CHEP).
The top-performing ETF of this group is NIFE with an increase of 22.84% over the last 100 days. ETHO has the highest percent weighting of AAN at 0.67%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). Zacks Investment Research reports AAN's forecasted earnings growth in 2020 as 29.13%, compared to an industry average of 3%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
Aarons Holdings Company, Inc. (AAN) will begin trading ex-dividend on November 13, 2020. AAN's current earnings per share, an indicator of a company's profitability, is -$3.18. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Direxion Fallen Knives ETF (NIFE) AGFiQ U.S. Market Neutral Value Fund (CHEP).
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAN Dividend History page. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Direxion Fallen Knives ETF (NIFE) AGFiQ U.S. Market Neutral Value Fund (CHEP).
|
AAN's current earnings per share, an indicator of a company's profitability, is -$3.18. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Direxion Fallen Knives ETF (NIFE) AGFiQ U.S. Market Neutral Value Fund (CHEP). Aarons Holdings Company, Inc. (AAN) will begin trading ex-dividend on November 13, 2020.
|
8952.0
|
2020-11-10 00:00:00 UTC
|
Noteworthy Tuesday Option Activity: AR, GOOGL, AAN
|
AAN
|
https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-ar-googl-aan-2020-11-10
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Antero Resources Corp (Symbol: AR), where a total of 127,510 contracts have traded so far, representing approximately 12.8 million underlying shares. That amounts to about 148.5% of AR's average daily trading volume over the past month of 8.6 million shares. Particularly high volume was seen for the $3.50 strike put option expiring November 20, 2020, with 37,086 contracts trading so far today, representing approximately 3.7 million underlying shares of AR. Below is a chart showing AR's trailing twelve month trading history, with the $3.50 strike highlighted in orange:
Alphabet Inc - Class A (Symbol: GOOGL) options are showing a volume of 28,670 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 133.1% of GOOGL's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $1800 strike put option expiring November 13, 2020, with 2,168 contracts trading so far today, representing approximately 216,800 underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $1800 strike highlighted in orange:
And Aarons Holdings Co Inc (Symbol: AAN) options are showing a volume of 6,204 contracts thus far today. That number of contracts represents approximately 620,400 underlying shares, working out to a sizeable 125.7% of AAN's average daily trading volume over the past month, of 493,630 shares. Particularly high volume was seen for the $60 strike put option expiring December 18, 2020, with 2,609 contracts trading so far today, representing approximately 260,900 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for AR options, GOOGL options, or AAN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $60 strike put option expiring December 18, 2020, with 2,609 contracts trading so far today, representing approximately 260,900 underlying shares of AAN. Below is a chart showing GOOGL's trailing twelve month trading history, with the $1800 strike highlighted in orange: And Aarons Holdings Co Inc (Symbol: AAN) options are showing a volume of 6,204 contracts thus far today. That number of contracts represents approximately 620,400 underlying shares, working out to a sizeable 125.7% of AAN's average daily trading volume over the past month, of 493,630 shares.
|
That number of contracts represents approximately 620,400 underlying shares, working out to a sizeable 125.7% of AAN's average daily trading volume over the past month, of 493,630 shares. Below is a chart showing GOOGL's trailing twelve month trading history, with the $1800 strike highlighted in orange: And Aarons Holdings Co Inc (Symbol: AAN) options are showing a volume of 6,204 contracts thus far today. Particularly high volume was seen for the $60 strike put option expiring December 18, 2020, with 2,609 contracts trading so far today, representing approximately 260,900 underlying shares of AAN.
|
Below is a chart showing GOOGL's trailing twelve month trading history, with the $1800 strike highlighted in orange: And Aarons Holdings Co Inc (Symbol: AAN) options are showing a volume of 6,204 contracts thus far today. That number of contracts represents approximately 620,400 underlying shares, working out to a sizeable 125.7% of AAN's average daily trading volume over the past month, of 493,630 shares. Particularly high volume was seen for the $60 strike put option expiring December 18, 2020, with 2,609 contracts trading so far today, representing approximately 260,900 underlying shares of AAN.
|
That number of contracts represents approximately 620,400 underlying shares, working out to a sizeable 125.7% of AAN's average daily trading volume over the past month, of 493,630 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $60 strike highlighted in orange: For the various different available expirations for AR options, GOOGL options, or AAN options, visit StockOptionsChannel.com. Below is a chart showing GOOGL's trailing twelve month trading history, with the $1800 strike highlighted in orange: And Aarons Holdings Co Inc (Symbol: AAN) options are showing a volume of 6,204 contracts thus far today.
|
8953.0
|
2020-11-06 00:00:00 UTC
|
Brink's Company Stock Failed To Stage A Recovery But Can The Tide Turn Now
|
AAN
|
https://www.nasdaq.com/articles/brinks-company-stock-failed-to-stage-a-recovery-but-can-the-tide-turn-now-2020-11-06
|
nan
|
nan
|
We believe that Brink’s Company stock (NYSE: BCO), a private security and protection company, may be a good opportunity at the present time. BCO stock trades near $43 currently and it is, in fact, down 53% so far this year (from $91 at the beginning of 2020). It traded at $84 in February 2020 – just before the coronavirus pandemic hit the world – and is currently 50% below that level as well. BCO stock is still trading close to its March lows of around $42. The stock has underperformed the broader market with the S&P 500 rising 48% from its March lows. But the gradual opening up of the economy is expected to lead to recovery in consumer spending in the coming quarters with an increase in cash processing. In fact, the company has seen a strong recovery in revenue, which in September stood at 90% of the levels seen during pre-Covid. Now with the G4S acquisition, revenues as well as margins are expected to improve over the coming quarters, which could drive the stock higher from here. Our conclusion is based on our comparative analysis of Brink’s Company stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard.
2020 Coronavirus Crisis
Timeline of 2020 Crisis So Far:
12/12/2019: Coronavirus cases first reported in China
1/31/2020: WHO declares a global health emergency.
2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high
3/23/2020: S&P 500 drops 34% from the peak level seen on Feb 19, as COVID-19 cases accelerate outside China. Doesn’t help that oil prices crash in mid-March amid Saudi-led price war
Since 3/24/2020: S&P 500 recovers 48% from the lows seen on Mar 23, as the Fed’s multi-billion dollar stimulus package suppresses near-term survival anxiety and infuses liquidity into the system.
In contrast, here is how BCO stock and the broader market fared during the 2007-08 crisis
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
BCO and S&P 500 Performance Over 2007-08 Financial Crisis
BCO stock declined from levels of about $31 in September 2007 (pre-crisis peak) to levels of $24 in March 2009 (as the markets bottomed out), implying BCO stock lost 24%. It failed to stage a recovery post the 2008 crisis, and remained around levels of close to $24 in early 2010, rising by a mere 2% between March 2009 and January 2010. In comparison, the S&P 500 Index saw a decline of 51% and a sharp recovery of 48%.
Brink’s Company Fundamentals Over Recent Years Have Been Strong
Brink’s Company revenues increased from $3.0 billion in 2015 to $3.7 billion in 2019. Along with higher revenues, margins improved over recent years with EPS increasing from -$0.24 in 2015 to $0.58 in 2019 mainly due to cost realignments over the recent years. The company’s Q3 revenues saw a 4.5% y-o-y growth, as a 20% contribution from G4S acquisition, more than offset the 9% decline due to the impact of the pandemic on the company’s business. However, the company reported a loss of $0.48 per share, compared to earnings of $0.11 per share in the prior year quarter, primarily due to higher taxes compared to the prior year, which saw significant tax benefits.
Does Brink’s Company Have Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis?
Brink’s Company total debt increased from $0.4 billion in 2016 to $2.5 billion at the end of Q3 2020, while its total cash went up from $0.2 billion to $0.8 billion over the same period. Brink’s Company generated cash from operation of $87 million in the first nine months of 2020. The company has enough liquidity cushion to weather the current crisis.
Conclusion
Phases of Covid-19 Crisis:
Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally
Late-March 2020 onward: Social distancing measures + lockdowns
April 2020: Fed stimulus suppresses near-term survival anxiety
May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases
July-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, a decline in the number of new cases, and progress with vaccine development buoy market sentiment
Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations. As the global economy opens up and lockdowns are lifted in phases, consumer demand is expected to pick up. Also, reduction of supply bottlenecks is expected to help a company which has a global supply network (22% of the total revenues comes from non-US markets) to increase its volume. This could be reflected in the form of a pick-up in revenue toward the end of 2020, followed by revenue growth in 2021, boding well for the stock in the near term.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Our conclusion is based on our comparative analysis of Brink’s Company stock performance during the current financial crisis with that during the 2008 recession in our interactive dashboard. It failed to stage a recovery post the 2008 crisis, and remained around levels of close to $24 in early 2010, rising by a mere 2% between March 2009 and January 2010. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, a decline in the number of new cases, and progress with vaccine development buoy market sentiment Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations.
|
In contrast, here is how BCO stock and the broader market fared during the 2007-08 crisis Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) BCO and S&P 500 Performance Over 2007-08 Financial Crisis BCO stock declined from levels of about $31 in September 2007 (pre-crisis peak) to levels of $24 in March 2009 (as the markets bottomed out), implying BCO stock lost 24%. Brink’s Company Fundamentals Over Recent Years Have Been Strong Brink’s Company revenues increased from $3.0 billion in 2015 to $3.7 billion in 2019. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, a decline in the number of new cases, and progress with vaccine development buoy market sentiment Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations.
|
In contrast, here is how BCO stock and the broader market fared during the 2007-08 crisis Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) BCO and S&P 500 Performance Over 2007-08 Financial Crisis BCO stock declined from levels of about $31 in September 2007 (pre-crisis peak) to levels of $24 in March 2009 (as the markets bottomed out), implying BCO stock lost 24%. Brink’s Company Fundamentals Over Recent Years Have Been Strong Brink’s Company revenues increased from $3.0 billion in 2015 to $3.7 billion in 2019. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, a decline in the number of new cases, and progress with vaccine development buoy market sentiment Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations.
|
In contrast, here is how BCO stock and the broader market fared during the 2007-08 crisis Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) BCO and S&P 500 Performance Over 2007-08 Financial Crisis BCO stock declined from levels of about $31 in September 2007 (pre-crisis peak) to levels of $24 in March 2009 (as the markets bottomed out), implying BCO stock lost 24%. Brink’s Company Fundamentals Over Recent Years Have Been Strong Brink’s Company revenues increased from $3.0 billion in 2015 to $3.7 billion in 2019. Conclusion Phases of Covid-19 Crisis: Early- to mid-March 2020: Fear of the coronavirus outbreak spreading rapidly translates into reality, with the number of cases accelerating globally Late-March 2020 onward: Social distancing measures + lockdowns April 2020: Fed stimulus suppresses near-term survival anxiety May-June 2020: Recovery of demand, with gradual lifting of lockdowns – no panic anymore despite a steady increase in the number of cases July-October 2020: After poor Q2 results, Q3 expectations were lukewarm, but continued improvement in demand, a decline in the number of new cases, and progress with vaccine development buoy market sentiment Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to buoy market expectations.
|
8954.0
|
2020-09-15 00:00:00 UTC
|
Aaron's, Inc. (AAN) Ex-Dividend Date Scheduled for September 16, 2020
|
AAN
|
https://www.nasdaq.com/articles/aarons-inc.-aan-ex-dividend-date-scheduled-for-september-16-2020-2020-09-15
|
nan
|
nan
|
Aaron's, Inc. (AAN) will begin trading ex-dividend on September 16, 2020. A cash dividend payment of $0.04 per share is scheduled to be paid on October 06, 2020. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AAN has paid the same dividend. At the current stock price of $58.18, the dividend yield is .28%.
The previous trading day's last sale of AAN was $58.18, representing a -26.03% decrease from the 52 week high of $78.65 and a 347.37% increase over the 52 week low of $13.01.
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). AAN's current earnings per share, an indicator of a company's profitability, is -$4.2. Zacks Investment Research reports AAN's forecasted earnings growth in 2020 as 14.01%, compared to an industry average of 11%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
Etho Climate Leadership U.S. ETF (ETHO)
Invesco RAFI Strategic US Small Company ETF (IUSS)
ProShares Trust (REGL)
ProShares Trust (SMDV)
AGFiQ U.S. Market Neutral Value Fund (CHEP).
The top-performing ETF of this group is IUSS with an increase of 29.76% over the last 100 days. ETHO has the highest percent weighting of AAN at 0.73%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). Zacks Investment Research reports AAN's forecasted earnings growth in 2020 as 14.01%, compared to an industry average of 11%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. AAN's current earnings per share, an indicator of a company's profitability, is -$4.2. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Invesco RAFI Strategic US Small Company ETF (IUSS) ProShares Trust (REGL) ProShares Trust (SMDV) AGFiQ U.S. Market Neutral Value Fund (CHEP).
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAN Dividend History page. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Invesco RAFI Strategic US Small Company ETF (IUSS) ProShares Trust (REGL) ProShares Trust (SMDV) AGFiQ U.S. Market Neutral Value Fund (CHEP).
|
AAN's current earnings per share, an indicator of a company's profitability, is -$4.2. The following ETF(s) have AAN as a top-10 holding: Etho Climate Leadership U.S. ETF (ETHO) Invesco RAFI Strategic US Small Company ETF (IUSS) ProShares Trust (REGL) ProShares Trust (SMDV) AGFiQ U.S. Market Neutral Value Fund (CHEP). Aaron's, Inc. (AAN) will begin trading ex-dividend on September 16, 2020.
|
8955.0
|
2020-09-10 00:00:00 UTC
|
BUZZ-U.S. STOCKS ON THE MOVE-SelectQuote Inc, Satsuma Pharmaceuticals, Aaron's Inc
|
AAN
|
https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-selectquote-inc-satsuma-pharmaceuticals-aarons-inc-2020-09-10
|
nan
|
nan
|
Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes opened higher on Thursday as momentum from demand for cheaper tech-related stocks overshadowed elevated weekly jobless claims that suggested a choppy economic rebound. .N
At ET, the Dow Jones Industrial Average .DJI was up 0.60% at 28,106.81. The S&P 500 .SPX was up 0.40%, at 3,412.56 and the Nasdaq Composite .IXIC was up 1.04% at 11,257.191. The top three S&P 500 .PG.INX percentage gainers: ** Quest Diagnostics Inc , up 4.2% ** Adobe Inc , up 3.5% ** Carnival Corp , up 3.1% The top three S&P 500 .PL.INX percentage losers: ** General Motors Co , down 2% ** Southern Co , down 1.7% ** Equity Residential , down 1.7% The top three NYSE .PG.N percentage gainers: ** SelectQuote Inc , up 15.7% ** Mednax Inc , up 11.3% ** Kaleyra Inc , up 10.8% The top three NYSE .PL.N percentage losers: ** Pros Holdings Inc , down 6.9% ** 500.Com Ltd WBAI.N, down 5.9% ** Yum China Holdings Inc , down 4.4% The top three Nasdaq .PG.O percentage gainers: ** Yield10 Bioscience Inc , up 62.3% ** Virtusa Corp VRTU.O, up 24.5% ** Overstock.com Inc , up 11.2% The top three Nasdaq .PL.O percentage losers: ** Satsuma Pharmaceuticals Inc , down 79.3% ** Precipio Inc , down 20.3% ** Sutro Biopharma Inc , down 18.1% ** Rockwell Medical Inc RMTI.O: up 17.5%
BUZZ-Rises on license deal with South Korean firm ** Innoviva Inc INVA.O: up 3.2%
BUZZ-Up as FDA expands inhaler approval for use in asthma patients ** Spotify Technology SA SPOT.N: up 7.3%
BUZZ-Rises as CS upgrades on Russia deal, Joe Rogan podcast potential ** Sonoma Pharmaceuticals Inc SNOA.O: up 8.2%
BUZZ-Rises on launch of nasal, oral products in Australia ** Tesla Inc TSLA.O: up 6.4%
BUZZ-Set to rise for second straight session ** GameStop Corp GME.N: down 9.0%
BUZZ-Plunges as Q2 results hit by COVID-19-led store closures ** Veoneer Inc VNE.N: up 5.7%
BUZZ-Rises on supply deal with global automaker ** Intra-Cellular Therapies ITCI.O: down 6.2%
BUZZ-Slips, launches $350 mln equity offering after stock soars ** Jaguar Health Inc JAGX.O: up 48.0%
BUZZ-Soars on diarrhea treatment-related deal with Glenmark ** Quest Diagnostics Inc DGX.N: up 4.3%
BUZZ-Up as co raises revenue, profit outlook ** Athenex Inc ATNX.O: down 9.9%
BUZZ-Slides on discounted stock offering ** Diffusion Pharmaceuticals Inc DFFN.O: up 7.8%
BUZZ-Rises on dosing first patients in COVID-19 treatment study ** RH RH.N: up 26.1%
BUZZ-Soars as uptick in home-furnishing powers Q2 beat ** Penn National Gaming Inc PENN.O: up 7.5%
BUZZ-Rosenblatt starts with 'buy' and Street high PT ** SelectQuote Inc SLQT.N: up 15.7%
BUZZ-Jumps as Street lauds upbeat forecast ** Satsuma Pharmaceuticals Inc STSA.O: down 79.3%
BUZZ-Slumps as migraine therapy late-stage study goals not met ** Aaron's Inc AAN.N: up 6.9%
BUZZ-Rises after lifting quarterly forecast
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.18%
Consumer Discretionary
.SPLRCD
up 0.91%
Consumer Staples
.SPLRCS
up 0.03%
Energy
.SPNY
down 0.10%
Financial
.SPSY
up 0.40%
Health
.SPXHC
up 0.05%
Industrial
.SPLRCI
up 0.39%
Information Technology
.SPLRCT
up 1.41%
Materials
.SPLRCM
up 0.42%
Real Estate
.SPLRCR
down 0.89%
Utilities
.SPLRCU
down 0.71%
(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Quest Diagnostics Inc , up 4.2% ** Adobe Inc , up 3.5% ** Carnival Corp , up 3.1% The top three S&P 500 .PL.INX percentage losers: ** General Motors Co , down 2% ** Southern Co , down 1.7% ** Equity Residential , down 1.7% The top three NYSE .PG.N percentage gainers: ** SelectQuote Inc , up 15.7% ** Mednax Inc , up 11.3% ** Kaleyra Inc , up 10.8% The top three NYSE .PL.N percentage losers: ** Pros Holdings Inc , down 6.9% ** 500.Com Ltd WBAI.N, down 5.9% ** Yum China Holdings Inc , down 4.4% The top three Nasdaq .PG.O percentage gainers: ** Yield10 Bioscience Inc , up 62.3% ** Virtusa Corp VRTU.O, up 24.5% ** Overstock.com Inc , up 11.2% The top three Nasdaq .PL.O percentage losers: ** Satsuma Pharmaceuticals Inc , down 79.3% ** Precipio Inc , down 20.3% ** Sutro Biopharma Inc , down 18.1% ** Rockwell Medical Inc RMTI.O: up 17.5% BUZZ-Rises on license deal with South Korean firm ** Innoviva Inc INVA.O: up 3.2% BUZZ-Up as FDA expands inhaler approval for use in asthma patients ** Spotify Technology SA SPOT.N: up 7.3% BUZZ-Rises as CS upgrades on Russia deal, Joe Rogan podcast potential ** Sonoma Pharmaceuticals Inc SNOA.O: up 8.2% BUZZ-Rises on launch of nasal, oral products in Australia ** Tesla Inc TSLA.O: up 6.4% BUZZ-Set to rise for second straight session ** GameStop Corp GME.N: down 9.0% BUZZ-Plunges as Q2 results hit by COVID-19-led store closures ** Veoneer Inc VNE.N: up 5.7% BUZZ-Rises on supply deal with global automaker ** Intra-Cellular Therapies ITCI.O: down 6.2% BUZZ-Slips, launches $350 mln equity offering after stock soars ** Jaguar Health Inc JAGX.O: up 48.0% BUZZ-Soars on diarrhea treatment-related deal with Glenmark ** Quest Diagnostics Inc DGX.N: up 4.3% BUZZ-Up as co raises revenue, profit outlook ** Athenex Inc ATNX.O: down 9.9% BUZZ-Slides on discounted stock offering ** Diffusion Pharmaceuticals Inc DFFN.O: up 7.8% BUZZ-Rises on dosing first patients in COVID-19 treatment study ** RH RH.N: up 26.1% BUZZ-Soars as uptick in home-furnishing powers Q2 beat ** Penn National Gaming Inc PENN.O: up 7.5% BUZZ-Rosenblatt starts with 'buy' and Street high PT ** SelectQuote Inc SLQT.N: up 15.7% BUZZ-Jumps as Street lauds upbeat forecast ** Satsuma Pharmaceuticals Inc STSA.O: down 79.3% BUZZ-Slumps as migraine therapy late-stage study goals not met ** Aaron's Inc AAN.N: up 6.9% BUZZ-Rises after lifting quarterly forecast The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes opened higher on Thursday as momentum from demand for cheaper tech-related stocks overshadowed elevated weekly jobless claims that suggested a choppy economic rebound. down 0.71% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Quest Diagnostics Inc , up 4.2% ** Adobe Inc , up 3.5% ** Carnival Corp , up 3.1% The top three S&P 500 .PL.INX percentage losers: ** General Motors Co , down 2% ** Southern Co , down 1.7% ** Equity Residential , down 1.7% The top three NYSE .PG.N percentage gainers: ** SelectQuote Inc , up 15.7% ** Mednax Inc , up 11.3% ** Kaleyra Inc , up 10.8% The top three NYSE .PL.N percentage losers: ** Pros Holdings Inc , down 6.9% ** 500.Com Ltd WBAI.N, down 5.9% ** Yum China Holdings Inc , down 4.4% The top three Nasdaq .PG.O percentage gainers: ** Yield10 Bioscience Inc , up 62.3% ** Virtusa Corp VRTU.O, up 24.5% ** Overstock.com Inc , up 11.2% The top three Nasdaq .PL.O percentage losers: ** Satsuma Pharmaceuticals Inc , down 79.3% ** Precipio Inc , down 20.3% ** Sutro Biopharma Inc , down 18.1% ** Rockwell Medical Inc RMTI.O: up 17.5% BUZZ-Rises on license deal with South Korean firm ** Innoviva Inc INVA.O: up 3.2% BUZZ-Up as FDA expands inhaler approval for use in asthma patients ** Spotify Technology SA SPOT.N: up 7.3% BUZZ-Rises as CS upgrades on Russia deal, Joe Rogan podcast potential ** Sonoma Pharmaceuticals Inc SNOA.O: up 8.2% BUZZ-Rises on launch of nasal, oral products in Australia ** Tesla Inc TSLA.O: up 6.4% BUZZ-Set to rise for second straight session ** GameStop Corp GME.N: down 9.0% BUZZ-Plunges as Q2 results hit by COVID-19-led store closures ** Veoneer Inc VNE.N: up 5.7% BUZZ-Rises on supply deal with global automaker ** Intra-Cellular Therapies ITCI.O: down 6.2% BUZZ-Slips, launches $350 mln equity offering after stock soars ** Jaguar Health Inc JAGX.O: up 48.0% BUZZ-Soars on diarrhea treatment-related deal with Glenmark ** Quest Diagnostics Inc DGX.N: up 4.3% BUZZ-Up as co raises revenue, profit outlook ** Athenex Inc ATNX.O: down 9.9% BUZZ-Slides on discounted stock offering ** Diffusion Pharmaceuticals Inc DFFN.O: up 7.8% BUZZ-Rises on dosing first patients in COVID-19 treatment study ** RH RH.N: up 26.1% BUZZ-Soars as uptick in home-furnishing powers Q2 beat ** Penn National Gaming Inc PENN.O: up 7.5% BUZZ-Rosenblatt starts with 'buy' and Street high PT ** SelectQuote Inc SLQT.N: up 15.7% BUZZ-Jumps as Street lauds upbeat forecast ** Satsuma Pharmaceuticals Inc STSA.O: down 79.3% BUZZ-Slumps as migraine therapy late-stage study goals not met ** Aaron's Inc AAN.N: up 6.9% BUZZ-Rises after lifting quarterly forecast The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes opened higher on Thursday as momentum from demand for cheaper tech-related stocks overshadowed elevated weekly jobless claims that suggested a choppy economic rebound. down 0.71% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The top three S&P 500 .PG.INX percentage gainers: ** Quest Diagnostics Inc , up 4.2% ** Adobe Inc , up 3.5% ** Carnival Corp , up 3.1% The top three S&P 500 .PL.INX percentage losers: ** General Motors Co , down 2% ** Southern Co , down 1.7% ** Equity Residential , down 1.7% The top three NYSE .PG.N percentage gainers: ** SelectQuote Inc , up 15.7% ** Mednax Inc , up 11.3% ** Kaleyra Inc , up 10.8% The top three NYSE .PL.N percentage losers: ** Pros Holdings Inc , down 6.9% ** 500.Com Ltd WBAI.N, down 5.9% ** Yum China Holdings Inc , down 4.4% The top three Nasdaq .PG.O percentage gainers: ** Yield10 Bioscience Inc , up 62.3% ** Virtusa Corp VRTU.O, up 24.5% ** Overstock.com Inc , up 11.2% The top three Nasdaq .PL.O percentage losers: ** Satsuma Pharmaceuticals Inc , down 79.3% ** Precipio Inc , down 20.3% ** Sutro Biopharma Inc , down 18.1% ** Rockwell Medical Inc RMTI.O: up 17.5% BUZZ-Rises on license deal with South Korean firm ** Innoviva Inc INVA.O: up 3.2% BUZZ-Up as FDA expands inhaler approval for use in asthma patients ** Spotify Technology SA SPOT.N: up 7.3% BUZZ-Rises as CS upgrades on Russia deal, Joe Rogan podcast potential ** Sonoma Pharmaceuticals Inc SNOA.O: up 8.2% BUZZ-Rises on launch of nasal, oral products in Australia ** Tesla Inc TSLA.O: up 6.4% BUZZ-Set to rise for second straight session ** GameStop Corp GME.N: down 9.0% BUZZ-Plunges as Q2 results hit by COVID-19-led store closures ** Veoneer Inc VNE.N: up 5.7% BUZZ-Rises on supply deal with global automaker ** Intra-Cellular Therapies ITCI.O: down 6.2% BUZZ-Slips, launches $350 mln equity offering after stock soars ** Jaguar Health Inc JAGX.O: up 48.0% BUZZ-Soars on diarrhea treatment-related deal with Glenmark ** Quest Diagnostics Inc DGX.N: up 4.3% BUZZ-Up as co raises revenue, profit outlook ** Athenex Inc ATNX.O: down 9.9% BUZZ-Slides on discounted stock offering ** Diffusion Pharmaceuticals Inc DFFN.O: up 7.8% BUZZ-Rises on dosing first patients in COVID-19 treatment study ** RH RH.N: up 26.1% BUZZ-Soars as uptick in home-furnishing powers Q2 beat ** Penn National Gaming Inc PENN.O: up 7.5% BUZZ-Rosenblatt starts with 'buy' and Street high PT ** SelectQuote Inc SLQT.N: up 15.7% BUZZ-Jumps as Street lauds upbeat forecast ** Satsuma Pharmaceuticals Inc STSA.O: down 79.3% BUZZ-Slumps as migraine therapy late-stage study goals not met ** Aaron's Inc AAN.N: up 6.9% BUZZ-Rises after lifting quarterly forecast The 11 major S&P 500 sectors: Communication Services .N At ET, the Dow Jones Industrial Average .DJI was up 0.60% at 28,106.81. up 0.18% Consumer Discretionary
|
The top three S&P 500 .PG.INX percentage gainers: ** Quest Diagnostics Inc , up 4.2% ** Adobe Inc , up 3.5% ** Carnival Corp , up 3.1% The top three S&P 500 .PL.INX percentage losers: ** General Motors Co , down 2% ** Southern Co , down 1.7% ** Equity Residential , down 1.7% The top three NYSE .PG.N percentage gainers: ** SelectQuote Inc , up 15.7% ** Mednax Inc , up 11.3% ** Kaleyra Inc , up 10.8% The top three NYSE .PL.N percentage losers: ** Pros Holdings Inc , down 6.9% ** 500.Com Ltd WBAI.N, down 5.9% ** Yum China Holdings Inc , down 4.4% The top three Nasdaq .PG.O percentage gainers: ** Yield10 Bioscience Inc , up 62.3% ** Virtusa Corp VRTU.O, up 24.5% ** Overstock.com Inc , up 11.2% The top three Nasdaq .PL.O percentage losers: ** Satsuma Pharmaceuticals Inc , down 79.3% ** Precipio Inc , down 20.3% ** Sutro Biopharma Inc , down 18.1% ** Rockwell Medical Inc RMTI.O: up 17.5% BUZZ-Rises on license deal with South Korean firm ** Innoviva Inc INVA.O: up 3.2% BUZZ-Up as FDA expands inhaler approval for use in asthma patients ** Spotify Technology SA SPOT.N: up 7.3% BUZZ-Rises as CS upgrades on Russia deal, Joe Rogan podcast potential ** Sonoma Pharmaceuticals Inc SNOA.O: up 8.2% BUZZ-Rises on launch of nasal, oral products in Australia ** Tesla Inc TSLA.O: up 6.4% BUZZ-Set to rise for second straight session ** GameStop Corp GME.N: down 9.0% BUZZ-Plunges as Q2 results hit by COVID-19-led store closures ** Veoneer Inc VNE.N: up 5.7% BUZZ-Rises on supply deal with global automaker ** Intra-Cellular Therapies ITCI.O: down 6.2% BUZZ-Slips, launches $350 mln equity offering after stock soars ** Jaguar Health Inc JAGX.O: up 48.0% BUZZ-Soars on diarrhea treatment-related deal with Glenmark ** Quest Diagnostics Inc DGX.N: up 4.3% BUZZ-Up as co raises revenue, profit outlook ** Athenex Inc ATNX.O: down 9.9% BUZZ-Slides on discounted stock offering ** Diffusion Pharmaceuticals Inc DFFN.O: up 7.8% BUZZ-Rises on dosing first patients in COVID-19 treatment study ** RH RH.N: up 26.1% BUZZ-Soars as uptick in home-furnishing powers Q2 beat ** Penn National Gaming Inc PENN.O: up 7.5% BUZZ-Rosenblatt starts with 'buy' and Street high PT ** SelectQuote Inc SLQT.N: up 15.7% BUZZ-Jumps as Street lauds upbeat forecast ** Satsuma Pharmaceuticals Inc STSA.O: down 79.3% BUZZ-Slumps as migraine therapy late-stage study goals not met ** Aaron's Inc AAN.N: up 6.9% BUZZ-Rises after lifting quarterly forecast The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes opened higher on Thursday as momentum from demand for cheaper tech-related stocks overshadowed elevated weekly jobless claims that suggested a choppy economic rebound. .N At ET, the Dow Jones Industrial Average .DJI was up 0.60% at 28,106.81.
|
8956.0
|
2020-09-04 00:00:00 UTC
|
Implied REGL Analyst Target Price: $62
|
AAN
|
https://www.nasdaq.com/articles/implied-regl-analyst-target-price%3A-%2462-2020-09-04
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF (Symbol: REGL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $61.54 per unit.
With REGL trading at a recent price near $55.57 per unit, that means that analysts see 10.75% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of REGL's underlying holdings with notable upside to their analyst target prices are Spire Inc (Symbol: SR), Aaron's Inc (Symbol: AAN), and United Bankshares Inc (Symbol: UBSI). Although SR has traded at a recent price of $57.69/share, the average analyst target is 20.76% higher at $69.67/share. Similarly, AAN has 17.07% upside from the recent share price of $55.63 if the average analyst target price of $65.12/share is reached, and analysts on average are expecting UBSI to reach a target price of $30.25/share, which is 15.92% above the recent price of $26.09. Below is a twelve month price history chart comparing the stock performance of SR, AAN, and UBSI:
Combined, SR, AAN, and UBSI represent 6.02% of the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $55.57 $61.54 10.75%
Spire Inc SR $57.69 $69.67 20.76%
Aaron's Inc AAN $55.63 $65.12 17.07%
United Bankshares Inc UBSI $26.09 $30.25 15.92%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a twelve month price history chart comparing the stock performance of SR, AAN, and UBSI: Combined, SR, AAN, and UBSI represent 6.02% of the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF. ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $55.57 $61.54 10.75% Spire Inc SR $57.69 $69.67 20.76% Aaron's Inc AAN $55.63 $65.12 17.07% United Bankshares Inc UBSI $26.09 $30.25 15.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of REGL's underlying holdings with notable upside to their analyst target prices are Spire Inc (Symbol: SR), Aaron's Inc (Symbol: AAN), and United Bankshares Inc (Symbol: UBSI).
|
Three of REGL's underlying holdings with notable upside to their analyst target prices are Spire Inc (Symbol: SR), Aaron's Inc (Symbol: AAN), and United Bankshares Inc (Symbol: UBSI). Below is a twelve month price history chart comparing the stock performance of SR, AAN, and UBSI: Combined, SR, AAN, and UBSI represent 6.02% of the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF. ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL $55.57 $61.54 10.75% Spire Inc SR $57.69 $69.67 20.76% Aaron's Inc AAN $55.63 $65.12 17.07% United Bankshares Inc UBSI $26.09 $30.25 15.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, AAN has 17.07% upside from the recent share price of $55.63 if the average analyst target price of $65.12/share is reached, and analysts on average are expecting UBSI to reach a target price of $30.25/share, which is 15.92% above the recent price of $26.09. Three of REGL's underlying holdings with notable upside to their analyst target prices are Spire Inc (Symbol: SR), Aaron's Inc (Symbol: AAN), and United Bankshares Inc (Symbol: UBSI). Below is a twelve month price history chart comparing the stock performance of SR, AAN, and UBSI: Combined, SR, AAN, and UBSI represent 6.02% of the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF.
|
Three of REGL's underlying holdings with notable upside to their analyst target prices are Spire Inc (Symbol: SR), Aaron's Inc (Symbol: AAN), and United Bankshares Inc (Symbol: UBSI). Similarly, AAN has 17.07% upside from the recent share price of $55.63 if the average analyst target price of $65.12/share is reached, and analysts on average are expecting UBSI to reach a target price of $30.25/share, which is 15.92% above the recent price of $26.09. Below is a twelve month price history chart comparing the stock performance of SR, AAN, and UBSI: Combined, SR, AAN, and UBSI represent 6.02% of the ProShares ProShares S&P MidCap 400 Dividend Aristocrats ETF.
|
8957.0
|
2020-07-30 00:00:00 UTC
|
Validea Kenneth Fisher Strategy Daily Upgrade Report - 7/30/2020
|
AAN
|
https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-7-30-2020-2020-07-30
|
nan
|
nan
|
The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
MYR GROUP INC (MYRG) is a small-cap value stock in the Construction Services industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MYR Group Inc. is a holding company. The Company, through its subsidiaries, provides specialty electrical construction services. The Company performs construction services in two segments: Transmission and Distribution (T&D), and Commercial and Industrial (C&I). The Company provides C&I electrical contracting services to general contractors, commercial and industrial facility owners, local governments and developers in the western and northeastern United States and western Canada. The Company's T&D segment serves the T&D sector of the electric utility industry. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade. The Company's C&I segment provides services, such as the design, installation, maintenance and repair of commercial and industrial wiring, installation of traffic networks and the installation of bridge, roadway and tunnel lighting.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of MYR GROUP INC
Full Guru Analysis for MYRG
Full Factor Report for MYRG
AARON'S, INC. (AAN) is a mid-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aaron's, Inc. (Aaron's) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron's stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of AARON'S, INC.
Full Guru Analysis for AAN
Full Factor Report for AAN
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Detailed Analysis of MYR GROUP INC Full Guru Analysis for MYRG Full Factor Report for MYRG AARON'S, INC. (AAN) is a mid-cap value stock in the Rental & Leasing industry. Detailed Analysis of AARON'S, INC. Full Guru Analysis for AAN Full Factor Report for AAN More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The Company provides a range of services on electric transmission and distribution networks and substation facilities, such as design, engineering, procurement, construction and upgrade.
|
Detailed Analysis of MYR GROUP INC Full Guru Analysis for MYRG Full Factor Report for MYRG AARON'S, INC. (AAN) is a mid-cap value stock in the Rental & Leasing industry. Detailed Analysis of AARON'S, INC. Full Guru Analysis for AAN Full Factor Report for AAN More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
|
Detailed Analysis of MYR GROUP INC Full Guru Analysis for MYRG Full Factor Report for MYRG AARON'S, INC. (AAN) is a mid-cap value stock in the Rental & Leasing industry. Detailed Analysis of AARON'S, INC. Full Guru Analysis for AAN Full Factor Report for AAN More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The rating according to our strategy based on Kenneth Fisher changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation.
|
Detailed Analysis of MYR GROUP INC Full Guru Analysis for MYRG Full Factor Report for MYRG AARON'S, INC. (AAN) is a mid-cap value stock in the Rental & Leasing industry. Detailed Analysis of AARON'S, INC. Full Guru Analysis for AAN Full Factor Report for AAN More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher.
|
8958.0
|
2020-07-29 00:00:00 UTC
|
Why Aaron's Stock Rocketed 20% on July 29
|
AAN
|
https://www.nasdaq.com/articles/why-aarons-stock-rocketed-20-on-july-29-2020-07-29
|
nan
|
nan
|
What happened
Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. There were two important pieces of news that drove the stock higher: earnings and the company's plans for a big corporate makeover. At 12:41 p.m. EDT, shares were up 17%.
So what
On the earnings front, Aaron's second-quarter results were pretty good given the COVID-19-related headwinds that the economy has been facing. Revenue advanced 6.4% year over year in the quarter. EBITDA was up 20.9%. And adjusted earnings were up a hefty 26.9%. Clearly Aaron's made out pretty well even in the face of the government-mandated shutdowns of nonessential businesses. That said, the company's two divisions posted vastly different top-line results.
Image source: Getty Images.
Aaron's core retail business, which operates lease-to-own stores selling furniture and electronics, saw a revenue decline of 2.8% year over year. Revenue in Aaron's Progressive Leasing business, meanwhile, jumped 14.2%. This business offers rent-to-own financing through other retailers, with more than 20,000 stores making use of its services. Which brings up the other piece of news, and the one that likely has investors most excited: Aaron's announced that it intends to break itself in two. The move will allow the faster-growing Progressive Leasing unit to trade as a separate company and, more important, be valued as an independent entity.
Now what
There's a lot of work that has to be done before this corporate restructuring transaction is complete, but, based on the stock price advance, it seems investors approve of the move. That said, after such a big gain, investors appear to be pricing in material positives. Long-term investors will probably want to wait for the transaction to be completed and then reevaluate the story to see if it's really as exciting as Wall Street seems to think it is.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 2020
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. The move will allow the faster-growing Progressive Leasing unit to trade as a separate company and, more important, be valued as an independent entity. Now what There's a lot of work that has to be done before this corporate restructuring transaction is complete, but, based on the stock price advance, it seems investors approve of the move.
|
What happened Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. There were two important pieces of news that drove the stock higher: earnings and the company's plans for a big corporate makeover. Revenue in Aaron's Progressive Leasing business, meanwhile, jumped 14.2%.
|
What happened Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. Aaron's core retail business, which operates lease-to-own stores selling furniture and electronics, saw a revenue decline of 2.8% year over year. 10 stocks we like better than Aaron's When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
|
What happened Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. There were two important pieces of news that drove the stock higher: earnings and the company's plans for a big corporate makeover. So what On the earnings front, Aaron's second-quarter results were pretty good given the COVID-19-related headwinds that the economy has been facing.
|
8959.0
|
2020-07-29 00:00:00 UTC
|
Bullish Two Hundred Day Moving Average Cross - AAN
|
AAN
|
https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-aan-2020-07-29
|
nan
|
nan
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $46.74, changing hands as high as $54.00 per share. Aaron's Inc shares are currently trading up about 17.4% on the day. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $52.78.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $46.74, changing hands as high as $54.00 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $52.78. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $46.74, changing hands as high as $54.00 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $52.78. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $46.74, changing hands as high as $54.00 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $52.78. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $46.74, changing hands as high as $54.00 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $52.78. Aaron's Inc shares are currently trading up about 17.4% on the day.
|
8960.0
|
2020-07-07 00:00:00 UTC
|
5 Cheap Dividend Stocks To Buy For Healthy Yields and Huge Upside
|
AAN
|
https://www.nasdaq.com/articles/5-cheap-dividend-stocks-to-buy-for-healthy-yields-and-huge-upside-2020-07-07
|
nan
|
nan
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many traders today are looking for cyclical turnarounds, or else are looking to get on the bandwagon of the latest “momentum” stock. These stocks make new highs each day but are untethered from any real value or reason anchor. In the end, they tend to falter when growth fails. I would rather look for reliable stocks that have growth potential, and if they can provide a little pocket money via healthy dividends, all the better.
So buying one of these cheap dividend stocks gives an investor a long-term edge. First, the stock is cheap on a P/E basis and dividend yield basis. Moreover, the stock is undervalued based on three measures of value. The first is a historical dividend yield method, the second is a historical P/E method, and the third is a peer-based valuation.
10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead
Here are the five cheap dividend stocks to buy with huge upside potential:
Rent-A-Center (NASDAQ:RCII)
Jefferies Financial Group (NYSE:JEF)
Cardinal Health (NYSE:CAH)
Science Applications Int’l Corp (NYSE:SAIC)
Charles Schwab (NYSE:SCHW)
Let’s take a closer look at these five stocks.
Cheap Dividend Stocks With Huge Upside: Rent-A-Center (RCII)
RCII) stock metrics. Forward P/E is 10.1, Upside Percent is 103.4, Dividend Yield is 4.3%" width="300" height="217">
Source: Mark R. Hake, CFA
Market Value: $1.4 billion
Dividend Yield: 4.4%
Forward P/E Ratio: 10.1 x
Target Upside: +103%
Rent-A-Center is a major renter of consumer electronics, computers, furniture and appliances. During the Q2 coronavirus restrictions, 75% of its 2,100 company-owned stores remained open. The other stores operated with closed showrooms.
So Rent-A-Center’s earnings and value as an enterprise have actually grown during this crisis period. By contrast, its main competitor, Aaron’s (NASDAQ:AAN), closed all of its stores until recently.
As a result, earnings per share (EPS) for 2020 are expected to surge 25% higher to $2.28 per share over last year’s $1.82 EPS on a normalized basis. Moreover, estimated EPS for 2021 is forecast to be 15% higher at $2.69 per share. This puts RCII stock on a cheap valuation – just 10 times forward earnings.
This hasn’t gone unnoticed on Wall Street. For example, Stephens just wrote a report on RCII in May saying that Covid-19 had largely unaffected its earnings.
RCII) quarterly dividends" width="300" height="177">
Source: Mark R. Hake, CFA
Moreover, the stock has an attractive 4.4% dividend yield. The table at the right shows that the company just recently started paying that dividend. This is also a sign of its confidence in future earnings prospects.
In effect, people are now more willing to rent rather than buy major purposes. This often happens during recessionary periods when thrift and near-term savings are more important.
I estimate that RCII’s target value is over twice today’s price, at $54.27. I used three valuation methods and averaged them. The three methods are a (1) historical dividend yield comparison, (2) a historical price-to-earnings analysis and lastly (3) a peer-based P/E ratio method.
Jefferies Financial Group (JEF)
Source: Mark R. Hake, CFA
Market Value: $4.1billion
Dividend Yield: 3.9%
Forward P/E Ratio: 13.4 x
Target Upside: +57%
Jefferies Financial Group is an investment banking firm formerly known as Leucadia National. The company has sold off many of its major private equity holdings, but still focuses on long-term value creation.
It also has an asset management division, a timber company and an energy subsidiary. But investment banking makes up the bulk of its revenues and earnings.
Jefferies was the first to join in with the U.S. Department of Health and Human Services to raise $1 billion for a public-private partnership in response to the Covid-19 crisis. The consortium, called RAPID (Rapid Aseptic Packaging of Injectable Drugs), will provide hundreds of millions of pre-filled syringes with urgently needed drugs.
It turns out that Jefferies is very cheap valued right now. JEF stock trades for just 13 times earnings, which are expected to grow almost 100% next year.
Source: Mark R. Hake, CFA
In addition, the yield is very attractive at 3.9%. You can see from the table at the right that Jefferies has paid a consistently growing dividend over the years.
In fact, based on its dividend history, JEF stock should yield 2.62%, according to Seeking Alpha data. That implies the stock is worth 48% more than today. Its other valuation comparisons show that its average value is over 56% higher than today’s prices at $24.42 per share.
10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead
Based on its historical P/E ratios, JEF stock should be at $32.15, over double today’s price. In addition, based on a comparison with its peers it should be at $18.21, or 17% higher. The average target price is 48% above today’s price.
Cardinal Health (CAH)
Source: Mark R. Hake, CFA
Market Value: $15.5 billion
Dividend Yield: 3.7%
Forward P/E Ratio: 9.3 x
Target Upside: +31%
Cardinal Health is one of the largest U.S. distributors of prescription medication and clinically proven medical products. Cardinal produced an impressive 11% increase in its March quarter-end revenue on a year-over-year basis.
Pharmaceuticals, which account for almost 90% of the company’s total revenue, grew 12% year-over-year in the quarter.
In addition, its earnings per share grew 2% on a non-GAAP basis. This shows that the company’s fundamental business is very sound and poised for further growth.
Moreover, the outlook for the company is for 5.7% earnings per share growth for the coming fiscal year (ending June 2021). This puts CAH stock at a cheap valuation, selling for just 9.3 times next year’s EPS.
Cardinal Health also boasts a very attractive dividend with a 3.7% yield.
Source: Mark R. Hake, CFA
Moreover, the company has consistently increased the dividend every four quarters. Investors can depend on this to continue as earnings have remained on an upward trend.
Based on my analysis of the company’s historical dividend yield, CAH stock is worth $58.97, almost 14% above today’s pricing. In addition, its historical P/E ratio valuation is over 59% higher than today at $$82.47. Lastly, based on a comp review of its peers, CAH stock is worth $62.79, or 21.2% higher.
Therefore, the stock’s average valuation is $68.08, which represents an upside of over 31% from today’s price.
Science Applications Int’l Corp. (SAIC)
Source: Mark R. Hake, CFA
Market Value: $4.5 billion
Dividend Yield: 1.9%
Forward P/E Ratio: 10.6 x
Target Upside: +40%
Science Applications International Corp (SAIC) makes most of its money from Uncle Sam. It is a prototypical “Beltway Bandit,” selling technical, engineering and information technology services and products to the government.
As a result, SAIC has had consistent profit growth. For example, over the past fiscal year ended January 31, revenue jumped 36.9% and net income rose almost 65%.
Moreover, growth continued in its fiscal first-quarter ended May 31. Organic revenue was up 3% year-over-year, despite the effects of Covid-19 and related lockdown restrictions. SAIC projected that without these restrictions, revenue would have risen 5%.
SAIC is also extremely profitable. For the fiscal year ended May 31, the company produced $626 million in free cash flow. Since revenue was $6.52 billion, its FCF margin was 9.6%. This is a very high ratio compared to most companies. This high FCF also supports a healthy dividend.
Source: Mark R. Hake, CFA
SAIC stock has a good 1.9% dividend yield and has consistently grown that dividend. Moreover, it consistently returns capital to shareholders with buybacks.
Moreover, my estimate of its value is at least 40% higher than today’s price, at $108.61 per share.
10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead
This target price is based on three measures of its value using historical and peer-based analysis. For example, its historical dividend yield target price is $86.05, 11% higher than today. Its historical P/E target price is $125.92, while its peer-based target price is $114.86. The average of these three targets is $108.61.
Charles Schwab (SCHW)
Source: Mark R. Hake, CFA
Market Value: $43.0 billion
Dividend Yield: 2.2%
Forward P/E Ratio: 13.9 x
Target Upside: +60%
Charles Schwab is more than just a brokerage firm. It has a large asset management firm, a custody business, a bank and a wealth management/advisory firm. Advisor services were 21% of its 2019 revenues.
Last November, Charles Schwab cut a deal to purchase TD Ameritrade (NASDAQ:AMTD) in an all-stock deal. That deal is now worth about $19.5 billion, down a good deal from the original value of $26 billion. This is primarily because SCHW stock has fallen since then.
However, the company expects to be able to gain from increased scale. Schwab projects between $1.8 billion to $2 billion in savings. That could increase its profits by 60% before the dilution of more shares outstanding.
Analysts now expect earnings of $2.40 per share in 2021, up from estimates of $2.30 in 2020. That puts SCHW stock on a cheap 13.9 times P/E ratio. Moreover, the stock has an attractive dividend yield of 2.2%.
Source: Mark R. Hake, CFA
Moreover, you can see that dividends have been growing consistently every four quarters.
My estimate of the company’s value is $53.35, an upside of 60% of the price on July 2, 2020. That is based on its dividend yield target price of $68.57, its historical P/E ratio price of $48.25, and its comp-based target of $43.23.
Summary – Cheap Dividend Stocks With Huge Upside
You can see from the table below that the average P/E ratio for this group of five stocks is just 11.5 times earnings. Moreover, the average dividend yield is attractive at over 3.2%.
Source: Mark R. Hake, CFA
The potential upside for this group of stocks is over 58%. Even if that took two years to achieve, the average annual gain would be 24% plus per year. In addition, the 3.2% dividend yield would provide a total return of 27%.
10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead
That is a very attractive potential return for investors in these stocks as a group.
Mark Hake runs the Total Yield Value Guide which you can review here. As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities.
The post 5 Cheap Dividend Stocks To Buy For Healthy Yields and Huge Upside appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By contrast, its main competitor, Aaron’s (NASDAQ:AAN), closed all of its stores until recently. Jefferies was the first to join in with the U.S. Department of Health and Human Services to raise $1 billion for a public-private partnership in response to the Covid-19 crisis. 10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead Based on its historical P/E ratios, JEF stock should be at $32.15, over double today’s price.
|
By contrast, its main competitor, Aaron’s (NASDAQ:AAN), closed all of its stores until recently. 10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead Here are the five cheap dividend stocks to buy with huge upside potential: Rent-A-Center (NASDAQ:RCII) Jefferies Financial Group (NYSE:JEF) Cardinal Health (NYSE:CAH) Science Applications Int’l Corp (NYSE:SAIC) Charles Schwab (NYSE:SCHW) Let’s take a closer look at these five stocks. Jefferies Financial Group (JEF) Source: Mark R. Hake, CFA Market Value: $4.1billion Dividend Yield: 3.9% Forward P/E Ratio: 13.4 x Target Upside: +57% Jefferies Financial Group is an investment banking firm formerly known as Leucadia National.
|
By contrast, its main competitor, Aaron’s (NASDAQ:AAN), closed all of its stores until recently. 10 Best ETFs for 2020: The Race Tightens With 'New Normal' Looming Ahead Here are the five cheap dividend stocks to buy with huge upside potential: Rent-A-Center (NASDAQ:RCII) Jefferies Financial Group (NYSE:JEF) Cardinal Health (NYSE:CAH) Science Applications Int’l Corp (NYSE:SAIC) Charles Schwab (NYSE:SCHW) Let’s take a closer look at these five stocks. Forward P/E is 10.1, Upside Percent is 103.4, Dividend Yield is 4.3%" width="300" height="217"> Source: Mark R. Hake, CFA Market Value: $1.4 billion Dividend Yield: 4.4% Forward P/E Ratio: 10.1 x Target Upside: +103% Rent-A-Center is a major renter of consumer electronics, computers, furniture and appliances.
|
By contrast, its main competitor, Aaron’s (NASDAQ:AAN), closed all of its stores until recently. RCII) quarterly dividends" width="300" height="177"> Source: Mark R. Hake, CFA Moreover, the stock has an attractive 4.4% dividend yield. Source: Mark R. Hake, CFA SAIC stock has a good 1.9% dividend yield and has consistently grown that dividend.
|
8961.0
|
2020-06-29 00:00:00 UTC
|
How The Pieces Add Up: DGRW Headed For $48
|
AAN
|
https://www.nasdaq.com/articles/how-the-pieces-add-up%3A-dgrw-headed-for-%2448-2020-06-29
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. Quality Dividend Growth Fund ETF (Symbol: DGRW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $48.39 per unit.
With DGRW trading at a recent price near $44.07 per unit, that means that analysts see 9.80% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DGRW's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Graphic Packaging Holding Co (Symbol: GPK), and MKS Instruments Inc (Symbol: MKSI). Although AAN has traded at a recent price of $44.32/share, the average analyst target is 28.11% higher at $56.78/share. Similarly, GPK has 25.23% upside from the recent share price of $13.30 if the average analyst target price of $16.66/share is reached, and analysts on average are expecting MKSI to reach a target price of $125.67/share, which is 15.73% above the recent price of $108.59. Below is a twelve month price history chart comparing the stock performance of AAN, GPK, and MKSI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $44.07 $48.39 9.80%
Aaron's Inc AAN $44.32 $56.78 28.11%
Graphic Packaging Holding Co GPK $13.30 $16.66 25.23%
MKS Instruments Inc MKSI $108.59 $125.67 15.73%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Although AAN has traded at a recent price of $44.32/share, the average analyst target is 28.11% higher at $56.78/share. WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $44.07 $48.39 9.80% Aaron's Inc AAN $44.32 $56.78 28.11% Graphic Packaging Holding Co GPK $13.30 $16.66 25.23% MKS Instruments Inc MKSI $108.59 $125.67 15.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRW's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Graphic Packaging Holding Co (Symbol: GPK), and MKS Instruments Inc (Symbol: MKSI).
|
Three of DGRW's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Graphic Packaging Holding Co (Symbol: GPK), and MKS Instruments Inc (Symbol: MKSI). WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $44.07 $48.39 9.80% Aaron's Inc AAN $44.32 $56.78 28.11% Graphic Packaging Holding Co GPK $13.30 $16.66 25.23% MKS Instruments Inc MKSI $108.59 $125.67 15.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAN has traded at a recent price of $44.32/share, the average analyst target is 28.11% higher at $56.78/share.
|
Three of DGRW's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Graphic Packaging Holding Co (Symbol: GPK), and MKS Instruments Inc (Symbol: MKSI). Although AAN has traded at a recent price of $44.32/share, the average analyst target is 28.11% higher at $56.78/share. Below is a twelve month price history chart comparing the stock performance of AAN, GPK, and MKSI: Below is a summary table of the current analyst target prices discussed above:
|
WisdomTree U.S. Quality Dividend Growth Fund ETF DGRW $44.07 $48.39 9.80% Aaron's Inc AAN $44.32 $56.78 28.11% Graphic Packaging Holding Co GPK $13.30 $16.66 25.23% MKS Instruments Inc MKSI $108.59 $125.67 15.73% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DGRW's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Graphic Packaging Holding Co (Symbol: GPK), and MKS Instruments Inc (Symbol: MKSI). Although AAN has traded at a recent price of $44.32/share, the average analyst target is 28.11% higher at $56.78/share.
|
8962.0
|
2020-05-07 00:00:00 UTC
|
Aaron's (AAN) Q1 2020 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-q1-2020-earnings-call-transcript-2020-05-08
|
nan
|
nan
|
Image source: The Motley Fool.
Aaron's (NYSE: AAN)
Q1 2020 Earnings Call
May 07, 2020, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Elisa, and I will be your conference coordinator. At this time, I would like to welcome everyone to the Aaron's, Inc. first-quarter 2020earnings conference call
[Operator instructions] I will now turn the call over to Mr. Michael Dickerson, vice president of corporate communications and investor relations for Aaron's, Inc. You may begin your conference.
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
Thank you, and good morning, everyone. Welcome to the Aaron's, Inc. first-quarter 2020earnings conference call Joining me this morning are John Robinson, Aaron's, Inc., president and chief executive officer; Ryan Woodley, chief executive officer of Progressive Leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc., chief financial officer and president of Strategic Operations.
Many of you have already seen a copy of our earnings release issued this morning. For those of you who have not, it is available on the investor relations section of our website at aarons.com. During this call, certain statements we make will be forward-looking. I want to call your attention to our safe harbor provision for forward-looking statements that can be found at the end of our earnings release.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 16, 2020
The safe harbor provision identifies risks that may cause actual results to differ materially from the content of our forward-looking statements. Also, please see our Form 10-K for the year ended December 31, 2019, for a description of the risks related to our business that may cause actual results to differ materially from our forward statements. Listeners are cautioned not to place undue emphasis on forward-looking statements, and we undertake no obligation to update any such statements. On today's call, we will be referring to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, non-GAAP net earnings, non-GAAP EPS, which have been adjusted for certain items, which may affect the comparability of our performance with other companies.
These non-GAAP measures are detailed in the reconciliation tables included with our earnings release. The company believes that these non-GAAP financial measures provide meaningful insight into the company's operational performance and cash flows and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding the company's ongoing operational performance. With that, I will now turn the call over to John Robinson.
John Robinson -- President and Chief Executive Officer
Thanks, Mike, and thank you all for joining us today. The world is currently confronting the COVID-19 pandemic, which is creating serious public health issues and inflicting economic damage beyond what most of us have ever experienced. Having been in business for over 65 years, operating in times of uncertainty is not new to Aaron's. The company has navigated the aftermath of many natural disasters and numerous economic cycles.
Through these difficult times, Aaron's has persevered, innovated and thrived. With the safety of our associates and customers as the top priority, our team is laser-focused on successfully managing the business through this crisis and positioning it to succeed after the pandemic passes. Aaron's purpose is to provide access to life-enhancing products for our customers with compassion and respect. Never has this purpose been more important than during this crisis, and never have our associates who execute this purpose been more heroic.
Whether it is a refrigerator or a laptop, Aaron's is enabling customers to get the products they must have in a critical time of need. I am humbled by the dedication and compassion our teams have demonstrated to each other, our customers and the communities we serve. We have made considerable efforts to get back to our communities during this crisis. Of particular note is the so-happy-to-help PPE project that our Woodhaven Furniture team launched in mid-March.
The Woodhaven team, led by Tommy Harper, quickly transitioned from furniture manufacturing to the production of personal protective equipment. Through the month of April, we have manufactured and donated nearly 65,000 masks, 20,000 medical gowns and 500 mattresses to medical and elderly care facilities, police and fire departments, and homeless shelters in Georgia, Texas, Florida, Nevada, Massachusetts, New York and the Navajo Nation. In addition, through our partnership with the Boys & Girls Club of America, we became aware of the need for laptop computers in their member communities. In response to this need, we have donated 200 laptops to clubs in Atlanta and Salt Lake City to enable students to complete their studies from home.
These are truly trying times, but I am proud that our associates have continued Aaron's long tradition of giving back to our communities, particularly in this time of need. Turning to our performance year-to-date through April. We think of these first four months of the year in three distinct periods. The period year-to-date through March 15th was marked by revenues, originations, cash flows, portfolio performance and earnings ahead of our expectations.
At the onset of the COVID period in mid-March, the company experienced the closure of retail partner stores and made the decision to voluntarily close Aaron's business corporate-owned showrooms as part of our efforts to protect the safety and well-being of our associates and customers. During this period, from mid-March until mid-April, both businesses experienced significant reductions in lease originations. At the same time, we made major changes to our business models and cost structures, preparing for a crisis of unknown depth and duration. This was a period of maximum uncertainty, particularly for our customers.
As a result, we modified many of our portfolio servicing efforts and proactively reached out to customers to offer COVID-related payment relief programs, including payment deferrals of up to 90 days. The result was a reduction in customer payments during the period. Nevertheless, when combined with the tight management of expenses and the reduction in working capital, our liquidity position continued to strengthen during this period. Beginning in mid-April, customers began to receive Care's Act Relief and enhanced unemployment benefits.
In addition, later in the month, some Progressive retail partners and our Aaron's business corporate-owned showrooms began to reopen. As a result, in the second half of April, we experienced markedly improved performance with a rebound in customer payments and originations. Overall, year-to-date, the business has generated strong operating cash flows, driven by solid customer payment activity, operating expense management, a significant reduction in capex and favorable working capital reductions. The net result of these dynamics is that our balance sheet has delevered since December 31st, and we ended April with total available liquidity of approximately $620 million.
So while it's been a tumultuous period for us since the onset of the pandemic, our business has been impressively resilient thus far. While I'm pleased that our business performed so well in the first quarter, there remains a tremendous level of uncertainty as we navigate this pandemic. Given the weakness in new originations over the last eight weeks, our lease portfolios are smaller than expected as of the end of April. While we've seen improving trends in the last few weeks, we expect that revenues will be below our original expectations until we experience a sustained recovery in origination activity.
Therefore, we will continue to take a conservative approach to managing expenses, working capital, capex and capital allocation. Before turning the call over to Ryan, I want to again thank our incredible associates across all of our businesses for their dedication and determination over the past eight weeks. I couldn't be prouder of how you've reacted to this crisis. While this pandemic has created a new set of challenges for us, I remain optimistic about our future and excited about the opportunities in front of us.
Now I'll turn the call over to Ryan to discuss Progressive's first-quarter performance and recent trends.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, John. I'd like to begin by acknowledging the remarkable execution of Progressive team during these challenging times. Over a period of just a few days in mid-March, we transitioned our entire workforce to work from home without any system or operational downtime. The team's resilience and efficiency in overcoming unprecedented logistical challenges, including managing through one of the worst earthquakes in Utah in the last 100 years while transitioning to work from home, enabled us to maintain high levels of uninterrupted performance for our customers and retail partners.
I'd also like to acknowledge our retail partners for their continued collaboration as we have worked together to develop innovative solutions, including e-commerce and curbside alternatives to assist our customers during this difficult economic climate. Today, I'd like to provide detail on our performance for the quarter overall, as well as to share insight into COVID-related trends that we've observed in the last half of March, as well as into the month of April. Through March 15th and prior to the full impact of COVID-19, Progressive posted better-than-expected financial results as reflected in the fact that our revenue, gross margin, customer payments and EBITDA, all performed ahead of our original expectations for 2020. We executed well at our recent national launches, and overall invoice volume was trending in line with the plan.
Net revenues in the first quarter overall reached a new record of 658.5 million, an increase of 25.8% compared to the first quarter of 2019. The revenue performance was driven by continuing strong invoice growth, including an increase of 13.4% in the first quarter. Of note, invoice performance had been trending at a year-to-date increase of 20.7% through March 15th. When the closure of thousands of retail doors, particularly in the electronics, jewelry and mattress categories resulted in an abrupt reduction in invoice volume through the remainder of March and into April.
For the period from March 15th to April 15th, invoice volume was down approximately 26% from the same period a year ago. From the period April 15th until April 30th, invoice volume improved significantly to being down approximately 2% compared to the same period last year. This lower-than-planned invoice volume since mid-March is the primary driver of our portfolio balance at the end of April that was approximately 15% below our original expectations, though still about 6% higher than the end of April 2019. Notably, we experienced a significant year-over-year increase in application volume in the last half of April, driven by government stimulus and supported in large part by applications originating in our own platforms, including progleasing.com and our Progressive native mobile apps.
However, the strong application growth is being offset by lower conversion rates as consumers are unable to transact where retail partner locations have been closed. Active doors grew 10.2% for the first quarter, driven by prior rollouts of new retail partner locations, and invoice per active door grew 2.9%. As expected, gross margins declined in the period to 29.6% compared to 31.2% in the first quarter of 2019, driven primarily by the trends we discussed on our last call, specifically higher 90-day buyouts due to strong growth resulting from recent national retail partner launches. SG&A expenses were 10.4% of revenues in the quarter compared to 11.8% in the prior-year period, an improvement of 140 basis points.
In mid-March, as COVID-19 began to impact the operations of our business and those of our retail partners, we took decisive action to reduce our cost structure in anticipation of declining invoice volume. As we have mentioned previously, Progressive benefits from a relatively high variable cost structure, which gives us the flexibility to quickly adapt to changes in overall invoice volume. Cost-cutting measures we took were primarily directed to these volume-driven cost centers, while preserving our ability to continue to execute across all functions of the business, as well as to invest in important growth initiatives. Additionally, we curtailed discretionary spending and are continually evaluating the need to maintain these cost controls needs ahead.
Turning to portfolio performance measures. Write-offs were 8.5% of revenues in the first quarter of 2020, up from the 7% reported in the year ago period. Before the impact of COVID-related incremental reserves, write-offs were 6.6% in the first quarter, an improvement of 40 basis points from the prior-year period. At the onset of the pandemic, given the uncertainty our customers were facing, we took proactive measures to provide payment relief, including deferrals for up to 90 days to customers affected by COVID-19.
Though the portfolio performance has remained strong for the year thus far, we believe that we have likely not yet seen the full impact of the economic challenges our customers are facing. While it is clear that customer payment activity has been assisted in part by the provisions of the Cares Act and enhanced unemployment benefits, it is not possible to completely disaggregate the stimulus-driven effect on payment activity from underlying consumer health. It is also not possible to predict whether and to what extent the federal government will issue further stimulus and how that stimulus might impact customer behavior. For that reason, in addition to booking our typical reserves that reflect current levels of delinquency, we increased our accounts receivable and leased asset reserves by 16.1 million in the first quarter to reflect our best estimates of potential future losses driven by COVID-19.
In late March, we also tightened our decisioning parameters in an effort to maintain strong performance and insulate the go-forward portfolio against a tougher economic outlook. EBITDA was 70.2 million in the first quarter, an increase of 7.6% compared to the first quarter of 2019. These results include the 16.1 million of COVID-related additions to our write-off and bad debt reserves. Before the impact of these incremental reserves, EBITDA margin increased approximately 50 basis points in the quarter due to the year-over-year reduction in SG&A and write offs, partially offset by the impact of higher 90-day buyouts in the period.
We are managing the business today in a way we believe will maintain strong portfolio performance and that appropriately sizes our SG&A to a lower level of expected revenues. We believe this will put us in a best position to resume profitable growth as lease originations recover. In closing, I'd like to reiterate my appreciation for the outstanding work accomplished by teams across Progressive and effectively and efficiently managing through this crisis. Inspired by a commitment to our mission, they somehow packed what seems like a year's worth of work into eight short weeks for the benefit of our customers and partners.
I couldn't be prouder. I'll now turn the call over to Douglas to discuss the Aaron's business first-quarter results and recent trends.
Douglas Lindsay -- President of the Aaron's Business
Thanks, Ryan. I, too, am extremely proud of the exceptional dedication and contributions of our Aaron's store and store support center team members during this crisis. I want to thank Ryan Malone, our head of stores; Rob O'Connell, our head of human resources; our divisional vice presidents and all of our multi-unit and in-store team members for their support of our customers and communities during this challenging time. On March 20th, we closed all of our corporate-owned showrooms and converted to a curbside and e-commerce-only model.
We made the decision to close showrooms with the safety of our team members and customers as our top priority, while doing our best to provide essential products to our customers during this crisis. The feedback from our customers has been tremendous. And I'm proud of our team's resourcefulness, positive attitude and desire to take care of our customers whose lives, in many cases, have been turned upside down. There is one point I'd like to emphasize.
Given that we are classified as an essential business in most jurisdictions, we could have continued to operate with open showrooms. However, at the onset of this pandemic, we made the decision to close showrooms to protect our team members and customers, while we determined what new safety protocols we needed to implement to operate in a safe manner. In addition to closing showrooms, we made other significant changes to our store operating practices at the onset of this pandemic, including reducing weekly operating hours by more than 50%. Furloughing 100% of our sales staff, processing new orders and payments at the curb side of our stores, suspending all in-home activities with deliveries and returns to the door only, and implementing COVID-19 payment relief programs for our customers affected by the pandemic.
Needless to say, making these changes in such a short period of time is extremely disruptive to our operations. And I want to reiterate how proud I am of our team members who quickly adapted to these changes, enabling us to continue to serve our customers safely during the crisis. Moving on to the financial results. For the first-quarter ended March 31st, 2020, revenues were 432.8 million, a decline of 9.8% from the first quarter of 2019, primarily due to a lower store count, a smaller lease portfolio to begin the quarter and weaker customer payments in the second half of March due to the onset of the pandemic.
Recurring revenue written into the portfolio declined 1.9% in the quarter. Excluding consumer electronics, recurring revenue written into the portfolio increased 2.7% in the first quarter, with growth occurring in our largest categories of furniture and appliances. Notably, TVs, the largest component of our electronics category, represented 10.8% of revenue written in the quarter, down from 14.3% in the same quarter last year. This decline is a continuation of a trend we have seen in the last several years.
Adjusted EBITDA was 35 million, a decrease of 16.4 million or 31.9% compared to the year ago quarter, resulting from lower revenues and incremental COVID-19-related allowances, partially offset by strong expense management. Included in adjusted EBITDA for the quarter was approximately 5.7 million of excess bad debt and inventory reserves, resulting from an assessment the future economic environment may be negatively impacted by the COVID-19 pandemic. Write-offs were 6.2% of revenues in the first quarter, driven by an increasing mix of e-commerce and additional COVID-19-related allowances. Including the incremental allowances, write-offs were 5.5% of revenues, down from 7.3% recorded in the fourth quarter of 2019, and as expected, higher than the 4.8% reported in the same period last year.
During the quarter, the Aaron's business took a charge of 16.4 million to writedown the value of stores permanently closed or expected to be closed this year. This represents a total of 103 locations. While about two thirds of these closures are underperforming stores, the remainder are consolidations or relocations of profitable stores. All of these closures are expected to be accretive to earnings.
These closures are part of our strategy to operate fewer higher-volume stores, along with a robust digital platform, which we expect will improve the customer experience, grow earnings and reduce the capital intensity of the business. I want to provide a little bit more detail on the Aaron's business results year-to-date through April. From January 1st through March 15th, revenues, customer payments and adjusted EBITDA were all performing ahead of our original 2020 expectations. However, in mid-March, as we closed our showrooms and shelter-in-place orders became effective, we saw a recurring revenue written decline to nearly 35% below the prior year, with customer payment trends worsening as well.
This trend lasted until mid-April. Effective April 23rd, we began a phased reopening of our showrooms across the country, informed by guidance from government authorities and after monitoring trends of COVID-19 cases in counties in which we operate. As part of our reopening, we implemented enhanced operating protocols to ensure the continued safety of our team members and customers, including new standardization procedures, required use of personal protective equipment, modified store layouts and limiting the number of customers in our showrooms. Additionally, we've invited furlough team members of our reopened showrooms back to work.
As of today, 85% of company-owned showrooms are open and operating at regular hours. In the last few weeks, lease originations and customer payments have improved as a result of government stimulus programs and the phased reopening of our showrooms. While overall lease originations are improving, albeit still below our original expectations, stores with recently reopened showrooms are beginning to perform near original planned levels. Over the same period, our customer payments across all stores have performed better than our original expectations.
In addition to changes in our operating model, I want to highlight what a positive impact of technology investments over the past few years have made on our business during this crisis. In late March, we accelerated the planned 2020 rollout of our centralized decisioning platform. We believe this platform allows us to improve the customer and team member experience, better control risk and reduce labor in our stores. Because we have the technology infrastructure already in place and two years of decisioning performance data under our belt, we are able to quickly and confidently convert our U.S.
corporate stores in early April. Additionally, our industry-leading e-commerce platform, aarons.com, continues to be a bright spot for the business. E-commerce recurring revenue written was up 23.4% in the first-quarter compared to the first quarter of 2019 and up over 50% in April, despite tightening decisioning in the last week of March, strong performance in April as a result of higher traffic and conversion rates, which drove a surge in e-commerce revenue written in the back half of April. I'm proud of our operations, technology and data analytics team for continuing to advance our digital capabilities and putting us in a position to serve so many customers through these platforms.
I'm extremely thankful to all the Aaron's business team members for their extraordinary efforts to serve our customers, our company and our communities during this challenging time. We have an exceptional team in place who've executed at a high level and shown great agility during this crisis. Looking forward, we have a compelling value proposition, an industry best technology platform in aarons.com and a risk decisioning engine that we expect to drive productivity, predictability and risk mitigation. I'm very optimistic about our prospects for the future and our long-term ability to generate sustained growth, strong cash flows and continued innovation.
I'll now turn it over to Steve to discuss our first-quarter financial results.
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Thanks, Douglas. Let me begin with a few items before moving on to our first-quarter financials. First is our goodwill charge. During the quarter, we conclude that the significant decline in the company's stock price and market capitalization during March 2020 triggered the need for an interim goodwill impairment test for the Aaron's business segment.
The company engaged the assistance of a third-party valuation firm to perform the interim goodwill impairment test. This included an assessment of the Aaron's business reporting unit's fair value relative to its carrying value. Fair value was derived using a combination of income and market approaches. As of March 31, the company determined that Aaron's business goodwill was fully impaired and recorded a goodwill impairment charge of 446.9 million.
Next, in the preliminary proxy filed in early April and again in the final proxy filed this week, among other things, the company requested shareholders vote to give our board and management team the discretion to implement a change to a holding company structure. The requirement for a shareholder vote is necessary in Georgia, where we are incorporated, but would not otherwise be required where we incorporate in Delaware as many companies are. We believe this holding company structure could facilitate future corporate actions and provide greater operational and financing flexibility for progressive leasing and the Aaron's business. On a consolidated basis, revenues for the first quarter of 2020 were 1.1 billion, an increase of 8.8% over the same period a year ago.
Adjusted EBITDA for the company was 98.5 million for the first quarter of this year compared to 115.2 million for the same period last year, a decrease of 16.8 million or 14.6%. Adjusted EBITDA was 8.9% of revenue in the first quarter of 2020 compared to 11.4% in the same period a year ago. Adjusted EBITDA includes 28.8 million of incremental bad debt, inventory and CECL reserves resulting from an assessment that the current economic environment and expectations of various projected economic metrics, such as unemployment rates and GDP, will be negatively impacted by the COVID-19 pandemic. Our customer payment activity has been strong through April 30th.
However, what is unknown is the depth and duration of the current economic slowdown caused by the COVID-19 pandemic and the degree to which government stimulus will continue to support our customers when the current Cares Act and enhanced unemployment benefits lapse. Again, while the portfolios have performed well and are in good shape today, we believe these reserves represent our best estimate of the potential deterioration we may experience in future periods. Diluted EPS on a non-GAAP basis for the quarter decreased 21% to $0.85 versus $1.08 in the prior-year quarter, primarily due to the approximately $0.32 per share of COVID-19-related incremental reserves recorded in the first quarter. Operating expenses increased approximately 25.8 million due to the 14.1 million expense from the termination of a sales and marketing agreement and 14.4 million of COVID-related incremental increases in lease merchandise allowances.
Before the impact of these items, operating expenses were down 2.8 million. This decrease is primarily due to reductions in personnel and occupancy costs in the Aaron's business, partially offset by increased personnel costs in the Progressive business to support its strong revenue growth over the last year. Cash generated from operating activities was 227.8 million for the first quarter of 2020, and including the funds from a 300 million revolver draw, we ended the quarter with 551 million in cash compared to 57.8 million at the end of 2019. Cash flow generation was strong during the quarter and has continued through April.
The source of cash flows has been the strength of ongoing customer payments, as well as lower-than-planned lease originations and resulting working capital reductions. In April, the company paid 60 million in scheduled debt amortization, 175 million to satisfy its settlement with the FTC and 300 million to pay down its revolving credit facility in full. As of April 30th, the company had a cash balance of 136 million and gross debt of 287 million. As a reminder, during January 2020, we took advantage of market conditions and amended our existing credit facilities, extending the maturities to January 2025 and increasing the capacity of our revolver by 100 million to 500 million.
I'm proud of our finance team for taking these proactive measures, and we ended April with over 620 million in available liquidity, an increase of approximately 175 million since December 2019, even after satisfying 235 million of obligations during the month of April. During the quarter, we did not repurchase any shares of the company's common stock, however, we have maintained our quarterly cash dividend. As a reminder, on March 23rd, the company withdrew its full-year 2020 financial outlook previously issued on February 20th due to the uncertainties resulting from COVID-19. With that, I will now turn the call over to the operator, who will assist with the question-and-answer period.
Questions & Answers:
Operator
[Operator instructions] The first question today comes from John Baugh of Stifel. Please go ahead.
John Baugh -- Stifel Financial Corp. -- Analyst
Thank you. Good morning and appreciate all the color. A few quickies here. One, could you just tell us what the 14.1 million marketing contract you terminated was about?
Douglas Lindsay -- President of the Aaron's Business
Yes, John, it's Douglas. As you probably remember last year, we went through a process of looking at our demand side of the business, which was really on how do we drive the increases in marketing in the third and fourth-quarter last year. As part of that, we -- I think you explained last year, we drove a lot of volume, but we had some collection challenges in the fourth quarter. We got back -- that back under control in the first quarter, and we're doing really well, and then COVID-19 hit us.
And at March 31st, it became clear to us that with our showrooms closing and our sales people furloughed that we weren't going to get a future benefit from that engagement. So we took the write-off in the quarter.
John Baugh -- Stifel Financial Corp. -- Analyst
And then I'm curious on either side of the business, whether or not you relinquished at all the tightened underwriting decisions you made in the onset of the pandemic?
John Robinson -- President and Chief Executive Officer
This is -- John, this is John. Good question. No, we -- across all our businesses, we tightened in the latter part of March and maintained that. We continued to maintain that approach.
Now despite the fact we did see improving customer payment performance, particularly in the back half of April, but we've maintained that more conservative approach.
John Baugh -- Stifel Financial Corp. -- Analyst
Got it. And then John, are you seeing a higher quality of applicant in either side of the business for maybe changes in tightened credit above you yet? Or no, that's not the case in light of the underwriting decisioning again?
John Robinson -- President and Chief Executive Officer
Yes. I mean, we -- and Ryan, you can feel free to jump in after me. But what I would say is we definitely heard -- we've heard out there that there is tightening going on in higher FICO bands for sure. But we haven't necessarily seen it across the board, perhaps we've seen it in pockets on the progressive business.
In the Aaron's business, obviously, we don't have the same visibility. We've seen good demand return in the stores that we have reopened in the back half of April. But what I would tell you is we've heard that. But given how short -- it feels like this has been two years, but it's been really eight weeks that we've been dealing with this pandemic.
And so I wouldn't feel comfortable saying there's any sort of trend that's developed there thus far. But clearly, to the extent tightening happens above us, and there's less availability of options for customers, that could be a tailwind for us in the future. But we're not ready to say that there's any sort of trend there yet, just given how early we are in this process.
John Baugh -- Stifel Financial Corp. -- Analyst
And then Ryan, could you tell us your retail partner base? I don't know. What -- obviously, they were 100% open, and they went to some percentage closed, and then they're in the process of reopening. Any help with where we are, where we went down to, where we are today? And then kind of give us an update again on your verticals there roughly in terms of percentage?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes. Happy to do it, John. So as you might imagine, we saw the most impact where stores and showrooms were closed, particularly in our jewelry, electronics and mattress verticals. Some of the work we did there with some of our partners that I alluded to in the prepared remarks like working on e-com and curbside service alternatives helped to offset the impact that we obviously would have otherwise seen.
But that was where we saw the most negative impact as where the showrooms were closed. Obviously, we did have some who remained open throughout the pandemic, either because they were, in almost all cases, they provided essential services. In all cases, it provided essential services and [Inaudible], and we saw continuing activity out of others and less of an impact. So in -- I'd say, a few trends we're seeing take place across the portfolio.
As you think about where we're at in the evolution of the pandemic, obviously, there's a ton of uncertainty about where we go from here. But we are seeing, as you know, state and home orders begin to be lifted and retailers responding to that by beginning their reopening process. We're seeing that -- the beginnings of that in jewelry and electronics. And we're also seeing the early signs of the impact that's having on customer activity, customers getting out.
It's really difficult to disaggregate that from the general increase in the demand we have seen as a result of the stimulus. But that's obviously encouraging. Some demand that hadn't otherwise existed, and those are happening somewhat simultaneously. Soin summary, we're seeing a return to demand, so positively increasing trends as we move through that March 15th to April 15th period.
And then from April 15th to present has been sort of a gradual improvement sequentially as influenced by those factors.
Operator
The next question comes from Bobby Griffin of Raymond James. Please go ahead.
Bobby Griffin -- Raymond James -- Analyst
Good morning everyone. I hope everybody stay healthy and safe and I appreciate the details on the prepared remarks. The first question I had is around really the core business. And maybe can you provide a little color on the ability to scale back up some of the cost as demand returns? And how are you approaching that as stores are coming back open now, but the volume is not quite back to trends that you might have been used to in the past?
Douglas Lindsay -- President of the Aaron's Business
Bobby, this is Douglas. Thanks for the question. So first of all, we're trying to control all the expenses we can control. We've suspended a lot of the discretionary spend, let's say, at the corporate level, we suspended merit increases.
We're working with our landlords on rent. We're taking a hard look at all of our discretionary spend. As you know, on a temporary basis, we took out a lot of costs. We furloughed roughly 2,000 employees in our stores and about 400 of our team members in our corporate office and our fulfillment centers.
And so as business returns, I mentioned in my prepared remarks, about 85% of our stores are back open. We are bringing back on our sales force. And so far, those stores that we brought back online, we're seeing demand rebound or revenue written into the portfolio, which is our leading measure of sales effectively appears to be rebounding in those. So we definitely want sales teams on our floors to capture that demand, collection volumes are up.
So we need the labor in the stores to manage all that. We are, however, monitoring store by store. So where we have lesser demand, we're scaling back on hours for our drivers in other areas where we can. But we want to be ready for the business, and we're being prudent about how we look at the cost structure.
Bobby Griffin -- Raymond James -- Analyst
OK. I appreciate that. And then maybe as a follow-up to John's question. For the Progressive side of the business, can you just remind us on what regions of the country your retail partners are more heavily weighted in, either the Southeast or West Coast or anything that might help us think about the impact of stay-at-home orders modestly getting lifted over the next couple of months?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes. Given the increasing weight of the portfolio toward national accounts, it really is a case to case, border to border presence across our partners with what's been a traditionally stronger weighting toward the south and in the southeast in terms of just penetration of rent-to-own generally. But we're experiencing the sort of same patchwork of return to activity that others are as you look at varying state interpretations of federal guidance and return to general levels of returning to activity. So it's going to be sort of a patchwork of that as we come through, but the net effect of it is increasing the return to kind of growth.
Bobby Griffin -- Raymond James -- Analyst
I appreciate the details. Best of luck in the second quarter.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks Bobby.
Operator
The next question comes from Brad Thomas of KeyBanc Capital Markets. Please go ahead.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Hey good morning everybody. Thanks for taking my question. Just jumping right into it, Ryan, I wanted to talk a little bit about the trends and invoice volume and making sure we're connecting it properly to how we think about the income statement. You gave a lot of numbers in your prepared remarks about the invoice volume having been up over 20% and then down over 20% and then improving.
So I guess, are these basically like weak increments you're giving us? And so are we sitting here with 2Q to date running down on kind of a weighted average basis? But that week-by-week, we're seeing growth. And so if the trend of the last week or two continues, we could see invoice volumes up for 2Q? Am I interpreting that right?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Maybe let me step back a little bit and sort of give a bigger picture and then we can zoom in for some of that detail because I think it will help put the context. So we had really strong revenue growth in Q1, that actually was the strongest growth we've had in six quarters. And the reason we had that strong growth in Q1 was obviously because we had seen such strong growth in invoice leading up to it, 34% in Q4. So Q1 benefited in large part, not only because of the uninterrupted January 1 to March 15th performance, but also because it was coming on the tail of such strong prior invoice growth.
So that really aided Q1 performance, obviously. And then the drop-off in invoice only had so much time to impact Q1 results. So Q2 will experience the brunt of the impact of the invoice reduction versus plan. And that will begin to more significantly impact revenue.
But you won't feel it more fully until Q3 when you have the impact of a lower invoice in Q2 bleeding into revenue in Q3. So that's sort of the bigger picture of the trends that are influencing what you see an invoice and how that translates into revenue. What we are trying to do is give you a little bit more precise insight into what invoice was doing for the periods that John laid out because those are really the periods of movement and material movement. And we said through March 15, invoice is doing well, growing 21% year over year.
And in that interim period of impact before stimulus at 315 to 415 roughly, it was down 26% year over year as there was a lot of uncertainty in store closures, show enclosures. And then when stimulus hit mid-April, through the year, we're kind of talking about trends capped at the end of April, mid-April, through the end of April, you saw that recover significantly from down 26 to only down two. And I guess the insight that I just provided in my response to the prior question was, it's continued to improve from there now into the positive range. And that's -- that leaves us with quite a bit of optimism.
I think the caveat we provided is, it's just impossible to know the extent to which that continues to be supported by stimulus and how much its stimulus tails off, we'll continue to see increasing return to demand just because we're seeing increasing returns to levels of activity as state home orders get lifted. Hopefully, that helps.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Got you. That's helpful. So if we were to extrapolate out the trends you've been seeing in the last couple of weeks, would it be reasonable to think that that invoice volume could settle out to being somewhere in the neighborhood of flat for 2Q in a world where, again, you've added new doors year over year and the partners you're working with are starting to reopen? Or is that just too much of a hole to dig yourself out of after a tough period of time at the end of March and the beginning of April?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, I think it would be perhaps unrealistic to think that you'd overcome being down 26% for that period. Not providing specific insight on guidance for Q2, obviously, because so much is so yet unknown, just a comment there is I think the biggest impact I expect to have to current Q2. But again, caveat. There's still a lot of uncertainty out there about how this plays out.
We're just cautiously optimistic.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
I appreciate that. Just making sure we're all getting on the same page on how to connect it out on some of these numbers. Maybe just lastly for me, if we could -- if you could give us a little more context on the bad debts and the write-offs? And I know there's a lot of unknowns here. But can you remind me, does that -- if you're experiencing elevated bad debt, is that going to result in us needing to take a bigger haircut as we try and triangulate the invoice volume into a revenue number in our models? And then, I guess, is there anything that you would think at this point in terms of the likelihood that the -- your ability to collect gets better or worse with what you're seeing here really?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
So on bad debt, we -- obviously it doesn't get as much attention now that it's factored into our presentation net revenues sort of above the line. But just since you thought of that because of the impact that it has on the translation from invoice to net revenue. So for Q1, bad debt was, I believe, 10.4% of gross revenues compared to 9.7% last year. But if you back out the effect of that incremental provision on bad debt, it was 9.8% of gross revenue, meaning that as we book the provision in the ordinary course accounting for current levels of delinquency, it would have been 9.8%.
So just right in line with last year. So we're saying, as we package Q1 and report out on it, we're right in line with where we were last year, reflecting current levels of delinquency. And so you step back from that and then say, is it reasonable to assume that payment trends will continue as they will in light of increasing levels of unemployment and other macroeconomic trends? It's unlikely that you would expect to have no impact whatsoever on our customers' future ability to pay. And so we're trying to reflect that in these incremental reserves that we've booked.
So the idea is that when you do that, you're sizing it appropriately so that you don't need to further build that reserve in the future. But it's impossible to do that exactly right without knowing the future, obviously. So we make our best guess. And obviously, if we are a little conservative, we'll leave that reserve over time.
If we're a little aggressive, we'll have to build it. But the goal was to get it as close to accurate as possible. It's close to an accurate representation of the potential future impairment.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Gotcha. Very helpful thank you so much Ryan.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks Brad.
Operator
The next question comes from Anthony Chukumba of Loop Capital Markets. Please go ahead.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Good morning. Thanks for taking my question. Two quick questions. First one just in terms of e-commerce, just any kind of update there.
I would expect that you probably saw a pickup with shelter in place in which the showroom is close, but would love any update you can provide there.
Douglas Lindsay -- President of the Aaron's Business
Yes. Anthony, it's Douglas. So we've seen a big pickup in e-com over the last quarter as you would expect, more of our existing customers, customers who were previously going into our showrooms were doing business online in April with our stores closed. Interestingly, as we begin to reopen stores, we saw that e-com traffic continue to be up and accelerate toward the last part of April.
So even in the states where we're opening, we're seeing a lot of strength in April, at the last part of April, and that's continuing into May in e-comm. So we're really happy, really happy we had all the framework in place and the technology in place. I think we get better and better at that every day, seeing higher traffic on our site and higher conversions. So really proud of the team.
And too early to tell if that's going to be sustained, but we're happy with the performance so far.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's helpful. And then just a quick follow-up. Is there anything that you're seeing on the virtual part of the business or the Progressive part of the business in terms of the competitive landscape? I just think that -- obviously, we've talked many times about the fact that you have dozens and dozens of these little sort of competitors, a lot of them are backed by private equity, and I would have to imagine they'd be suffering mightily in this environment.
But I was just wondering if there's anything that you guys were hearing out there in the channel?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes. I appreciate the question. We may have heard similar rumors about difficulties being experienced by others in the market. But we've all had a lot to focus on over the last eight weeks.
And I would say it continued -- there continues to be pretty tough competition in the market. And we wouldn't be doing the right thing if we didn't continue to take that seriously, which is one of the big reasons why we haven't pulled back on some of our important investments and growth initiatives like e-com and mobile as we move forward, even in this environment because there's just so much potential out there. And look, the fact that there's -- I think we should expect to continue to see strong competition, and that's just a natural result of a really large remaining market opportunity. Just -- not just share shift, but greenfield that remains out there.
Retailers who have not yet implemented rent-to-own and the significant portion of a third of the U.S. population that could still benefit from rent-to-own because they're underserved. So I think that's going to continue to support strong competition in the market, and we're investing to maintain our lead.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. And if I can just sneak one more, and I hate to be that guy. But just remind me something that you said. Have -- what have you seen in terms of the pipeline, particularly given the fact that you have a lot of retailers who are obviously struggling mightily.
I would think that that would be helpful to you in terms of building out the pipeline, maybe they're a lot more receptive to adding nonrecourse for into owned solution, given the current sort of macroeconomic headwinds? I promise that's my last one.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
That's a good question. We debated this at the onset of the pandemic because there were these sort of competing factors. One, there was just the level of uncertainty and what that would do to folks desire to make plans and make investments, sort of offset by the strong desire to serve a customer who was going to benefit from the flexibility of lease-to-own and knowing that there would be tightening above us and that may be a tailwind going forward that that might further increase demand in the pipe. So I may have been -- I may have thought it would slow down more, but it actually hasn't.
As I sit here today, I think the pipeline looks better today than it did in early March. So I'm really happy with where we sit right now. We've already had a couple of wins and continue to be optimistic about the potential future growth that could come from those.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it, keep up the good work. Thank you.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thank you.
Operator
The next question comes from Bill Chappell of SunTrust. Please go ahead.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
I guess first question just on the Progressive side. Trying to understand if, and I realize it's too early to tell, but kind of your retail customers, if you see any risk out there of them going away, some of the smaller ones or struggling ones and if you've kind of factored that in over the next few months. And then conversely, again, I understand it's early, but typically, this is a time where retailers are looking for incremental dollars over the next few months. And so have you seen more interest as some are coming back to you who have been in project mode or what have you and wanting to move forward?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
And by interest, you mean pipeline activity? Or do you mean among --
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Exactly. Pipeline activity that's maybe people have pushed you off in the past, but now say, hey, this does sound like something, especially if we go into a recession that we could want to add to our business. If it's heated up or again, there's been so much turbulence, it might be too early for that.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes. So it's a decent-sized pipeline. So there -- I'd say there are puts and takes inside of it. But on the whole, I'd just reiterate the statement that I feel like it's -- I'm more excited about it now than I was in early March.
We've had some wins. And I'm excited about the growth that could come from stuff that we have moving through the pipeline. So it's better than I expected, heading into COVID, which is a good position to be in. And then, I'm sorry, Bill, what was your first question?
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Just kind of with regard to the health of your existing customers. Are you worried about any of them going under?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Oh, got you, the partners. We have a base of several thousand partners. So I expect that we'll see the gamut of sort of outcomes from the pandemic, and I guess it would be naive to say that across several thousand retail partners that we wouldn't have any that go out of business, especially in the long tail of those partnerships. So I imagine that will occur down there.
But where I sit today, I feel pretty good about the strength of those partnerships and the ability to generate future growth.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. And Douglas, just any kind of early read for -- in the showrooms that have been reopened? Have you seen pent-up demand? Have you seen people actually show up? I mean I know it's -- you know in Georgia, we're kind of leading-edge on these things, and people are ready to get out and about, and so just didn't know what you've experienced so far?
Douglas Lindsay -- President of the Aaron's Business
Yes. I mean I think we -- I think Brian, I bet, did some work on the call of really breaking it up in time period. So it say after April 15, checks began to come out and we began to open showrooms on April 23. So what we saw was a surge in customer payments that lasted to the end of the month, and we're continuing to see that going into May.
So that's positive, a lot of cash coming in the door. Customers have a lot of cash. And they're buying, and they're making their payments, which is encouraging. So our deliveries have been strong in the stores that we've reopened.
We've got a phased reopen going on, and we're -- that we initially opened two states then continue to open up to 85% of our network. In those stores that we've reopened, we are tracking to our original plan that we put out at the beginning of 2020. But probably more importantly, we're driving a lot of e-com. So e-commerce is way up, as I said in my prepared remarks, in the month of April.
And that as a percent of our total deliveries is a significantly higher number than it's been in the past. So we're really bullish about that.
John Robinson -- President and Chief Executive Officer
One thing I'd add to that, Douglas was exactly right. The only thing I'd add is, interestingly, even in the stores, the showrooms that have reopened, Bill, as you remember, e-com, we service through our stores. And so the e-commerce remains strong in those. So even after the showrooms open, which is an encouraging sign.
We don't know what -- as Douglas said earlier, we don't know if that speaks to a trend. But it's an interesting fact that the e-com business has been strong and remains strong even when the showrooms have reopened.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Great. Thanks for the color and stay safe.
John Robinson -- President and Chief Executive Officer
Thank you.
Operator
The next question comes from Kyle Joseph of Jefferies. Please go ahead.
Kyle Joseph -- Jefferies -- Analyst
Hey good morning guys. Thanks for having me on. Most of my questions have been answered, but just a few follow-ups here. I'll start with Ryan, if I may.
Ryan, can you give us a sense for the revenue breakdown at Progressive between e-commerce and brick-and-mortar and how you see that trending over time? And then on that note, can you give us any sort of update with the new nationwide retailers you partnered with, where you are on being able to offer an e-commerce solution there?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Sure. Happy to, Kyle. So we don't split out e-com or -- from brick-and-mortar when we talk about results. But I will offer the insight to add on to what Douglas had shared earlier.
We're seeing similar trends. So among our native e-com partners, we're seeing strong performance, especially in the context of COVID. As you can imagine, they're benefiting from that shift to online and doing very well. And even among our omnichannel providers, we're seeing the same thing.
So we're seeing very strong double-digit increases in application volume through those channels, which is a really good thing to see. And if there was -- it's maybe inappropriate to say, but if there is a silver lining in a crisis like this, it's been the significant focus on accelerating digital initiatives across our portfolio and among some of our larger accounts, there's -- there was a focus prior to COVID, but this has served as a catalyst for their focus and investment on getting those new sources of application, new integrations develop. So that'll be a silver line coming out of this is the advancements that we're going to make on that front. As you know, that's an area we've been investing in for quite a while now, and we expect it to be a significant component of our future growth and the trends we're seeing are positive and the advancements that are being made on that front are likewise positive.
And then on your second question on national partnerships. I mentioned in the prepared remarks that up until March 15, tracking right in line with expectations going well, great relationships with those partners. And the only thing that's changed is the deflection in invoice growth among some of them as a result of closed stores and/or showrooms. Those that have remained open are doing well.
And I feel like we're seeing -- I feel like we are seeing increasingly positive trends there, and I expect that to continue.
Kyle Joseph -- Jefferies -- Analyst
Got it. And then one follow-up for you, Ryan. I think I know the answer, but I'd rather hear it from the horse's mouth. Given the invoice volume you guys had in January and February, I think you said it was just north of 20%.
Obviously, that's down versus the fourth quarter. Is that more driven by retailer seasonality than an actual -- what drove that? My guess, it would be retail seasonality.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes. You got it. That's it. The Q2 is just the selling season for big categories like electronics, even mobile and jewelry, they're doing well in that period.
And so it was just going to be that irrespective of COVID.
Kyle Joseph -- Jefferies -- Analyst
OK. That's helpful. And then last question for me. Over to Douglas.
Seven back with, call it, a month plus of store closures and looking at your performance during that time, has it changed your perspective on the long-term outlook for the number of stores or potential consolidation activity? And given the success of the e-commerce platform, any sort of long-term outlook changes you've seen there?
Douglas Lindsay -- President of the Aaron's Business
Yes. I mean, listen, the way we're thinking about it is we're taking effectively a digital-first strategy, where we're trying to do things in the business that we can scale quickly. I think RTO was a good example of that. How do we like put things at scale in our network and drive a better customer experience, control decisioning, control risk and have a better outcome for us.
So with the digital-first sort of focus comes sort of this competitive advantage we have with stores, we believe that we really should have fewer stores in the network, but higher volume stores. And so what you'll see from us going forward is more, I would say, two store in the one store type moves. We think we can do this at a lower cost, drive greater earnings and have really good cash flow dynamics from that.
Kyle Joseph -- Jefferies -- Analyst
Got it, thanks all very much for answering my question. Really appreciate the color.
Douglas Lindsay -- President of the Aaron's Business
Thank you, Kyle.
Operator
The next question comes from Vincent Caintic of Stephens. Please go ahead.
Vincent Caintic -- Stephens Inc. -- Analyst
Hey good morning and thanks for taking my questions. So first on the Progressive. I just wanted to follow-up on some earlier -- on an earlier question. Just on the number of doors that are open, I guess, if you could maybe let us know when volume was down, I think the worst was 26%, when it was down at that level, how many doors were closed at that time? And then where are we now? And are there any sort of discussions you're having with your retail partners, where it seems like maybe 100% of the doors might be opened by, let's say, summer or so? Like any sort of a forward look there?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Sure. Yes. We don't have exact counts just because of the volume in the tens of thousands, it's hard to track that discretely by period. But I'll just give you an example of the key movers.
So in our jewelry vertical, obviously, those showrooms were closed entirely. Many of those in mall-based locations where the entire model is closed. And while the vast majority of those remain close to this day, we are seeing the beginnings of reopening there. Now we're in the early stages of that, and I expect that to continue gradually to reopen, again, in response to the lifting of state home orders.
Electronics is another example where showrooms were closed, and there was a lot of curbside service worked on to facilitate curbside service, and I expect that will move to gradual reopening process with limits on the number of people allowed in the showroom and then that eventually evolving into open showrooms. But those two examples are examples where showrooms remain closed. But we are -- we have already seen the beginnings of the reopening process, and we expect it'll reoccur gradually, that's not going to be a one week to the next, as you pointed out. It'll be over a period of several weeks.
But in spite of that, we're seeing that recovery in invoice, which is what's interesting. So it's obviously being driven by several factors there.
Vincent Caintic -- Stephens Inc. -- Analyst
That's really helpful. Second question, I'm sure both on the Progressive side and on the Aaron's business side. Just wondering what sort of levels are baked into the reserves that you're taking, I guess, not necessarily a forecast of how bad can reserve -- can bad debt get, but sort of what's -- what levels can you absorb and be fully covered by your existing reserves? And maybe relatedly, do the reserves bake in any thoughts about depreciation rates and how you're thinking about return to inventory volumes, so pickups of volumes?
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Yes, Vince, this is Steve. I mean as we said in the prepared remarks, and as Ryan said, we obviously looked at the balance sheet date. As of March 31, we looked at our lease impairment reserves and our bad debt allowances and decided or made the determination that it was unlikely to assume that COVID would not have some impact on the future. And once you make that kind of -- from an accounting standpoint, you make that potential impairment analysis, then you move on to like, well, how do you quantify it and you have got a probability weight different outcomes.
We've got this government stimulus that we don't know how the immediate $1,200 checks and the actual checks are going to continue to play out. We've got enhanced unemployment benefits that currently last until the end of July, but there's -- we have no knowledge of whether those will be extended. So we just had to use all of the information that we had available to us, along with the actual results that we've been seeing kind of post the quarter and make our best determination about potential future outcomes. As Ryan said appropriately, we're not going to be right, right? Because we don't know the future.
But at the time, our best estimates were to take these incremental reserves, and they were basically applied against the valuation of the lease merchandise that we have on the balance sheet and then the amount of the AR reserves or the AR that we have on the balance sheet. So it's not reflected as a percentage of how many customers we think are going to go bad or anything like that. It's just -- it's an overlay against the reserves that we would have had anyways based on the information we had available to us when we were making the decision. And then obviously, part of the reserve is a CECL reserve, which refers specifically to our Vive business, which is a second look credit provider that partners with banks, and we had to adopt CECL as of January 1.
As you know there, we had about a -- historically, we ran about a mid-teens provision expense under the previous provisioning method, and after adopting CECL, we expected that we'd be kind of in the low to, call it, mid-20s, and we were after we took the day one retained earnings charge from the adoption of CECL. Because of macroeconomic factors related to that CECL calculation, we ended up taking additional reserves in the quarter that put us into the low 30s percent from a provision expense, and that is heavily weighted on future expectations of unemployment rates and GDP. So that was about 7 million of the additional incremental reserves that we took.
Vincent Caintic -- Stephens Inc. -- Analyst
OK. That's very helpful. Maybe have you seen a lot of return items or request for returns by customers?
Douglas Lindsay -- President of the Aaron's Business
This is Douglas. We've actually seen lower return levels in the first quarter and going into April than we have experienced historically. And I think there's multiple reasons for that. I think we're working with the customer more through this crisis and making sure that they can stay on the product and that we fulfill our value proposition for being flexible with them.
Second is that the customer is really not trading out product right now. A customer rent-to-own typically will buy something and then trade up or trade out into something different. They're just not leaving their homes right now. And I think lastly, there's just more liquidity in the market.
So customers are able to stay in their payments longer and get toward ownership. So we don't expect -- I expect to see lower returns over the near term as liquidity is in the market, and the more payments they're making in their leases, I think, more likelihood that they go to further into ownership.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to John Robinson for any closing remarks.
John Robinson -- President and Chief Executive Officer
Thank you. I want to thank our associates, franchisees and retail partners for your commitment to serving our customers during this time of crisis. It's definitely been a tumultuous period. And our sympathy goes out to all of those who've been negatively affected by this pandemic.
We thank you all for your participation on our call today, and we look forward to updating you again on our second-quarter call.
Operator
[Operator signoff]
Duration: 74 minutes
Call participants:
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
John Robinson -- President and Chief Executive Officer
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Douglas Lindsay -- President of the Aaron's Business
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
John Baugh -- Stifel Financial Corp. -- Analyst
Bobby Griffin -- Raymond James -- Analyst
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Anthony Chukumba -- Loop Capital Markets -- Analyst
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Kyle Joseph -- Jefferies -- Analyst
Vincent Caintic -- Stephens Inc. -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's (NYSE: AAN) Q1 2020 Earnings Call May 07, 2020, 10:00 a.m. Operator [Operator signoff] Duration: 74 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations John Baugh -- Stifel Financial Corp. -- Analyst Bobby Griffin -- Raymond James -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. At the onset of the COVID period in mid-March, the company experienced the closure of retail partner stores and made the decision to voluntarily close Aaron's business corporate-owned showrooms as part of our efforts to protect the safety and well-being of our associates and customers.
|
Operator [Operator signoff] Duration: 74 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations John Baugh -- Stifel Financial Corp. -- Analyst Bobby Griffin -- Raymond James -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q1 2020 Earnings Call May 07, 2020, 10:00 a.m. Welcome to the Aaron's, Inc. first-quarter 2020earnings conference call Joining me this morning are John Robinson, Aaron's, Inc., president and chief executive officer; Ryan Woodley, chief executive officer of Progressive Leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc., chief financial officer and president of Strategic Operations.
|
Operator [Operator signoff] Duration: 74 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations John Baugh -- Stifel Financial Corp. -- Analyst Bobby Griffin -- Raymond James -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q1 2020 Earnings Call May 07, 2020, 10:00 a.m. Welcome to the Aaron's, Inc. first-quarter 2020earnings conference call Joining me this morning are John Robinson, Aaron's, Inc., president and chief executive officer; Ryan Woodley, chief executive officer of Progressive Leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc., chief financial officer and president of Strategic Operations.
|
Operator [Operator signoff] Duration: 74 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations John Baugh -- Stifel Financial Corp. -- Analyst Bobby Griffin -- Raymond James -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Kyle Joseph -- Jefferies -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q1 2020 Earnings Call May 07, 2020, 10:00 a.m. Having been in business for over 65 years, operating in times of uncertainty is not new to Aaron's.
|
8963.0
|
2020-04-20 00:00:00 UTC
|
Progressive Leasing Agrees To Settle FTC Investigation - Quick Facts
|
AAN
|
https://www.nasdaq.com/articles/progressive-leasing-agrees-to-settle-ftc-investigation-quick-facts-2020-04-20
|
nan
|
nan
|
(RTTNews) - Progressive Leasing, a subsidiary of Aaron's, Inc. (AAN), has decided to settle the FTC investigation related to the adequacy of consumer disclosures. Progressive will pay $175 million to the FTC with no admission of wrongdoing. It recorded a charge of approximately $179 million in the fourth quarter, for costs associated with the settlement and related expenses.
"Although we disagree with the FTC's allegations, we have agreed to settle this matter to avoid the expense, management distraction and uncertainty caused by protracted litigation," said John Robinson, CEO of Aaron's.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Progressive Leasing, a subsidiary of Aaron's, Inc. (AAN), has decided to settle the FTC investigation related to the adequacy of consumer disclosures. It recorded a charge of approximately $179 million in the fourth quarter, for costs associated with the settlement and related expenses. "Although we disagree with the FTC's allegations, we have agreed to settle this matter to avoid the expense, management distraction and uncertainty caused by protracted litigation," said John Robinson, CEO of Aaron's.
|
(RTTNews) - Progressive Leasing, a subsidiary of Aaron's, Inc. (AAN), has decided to settle the FTC investigation related to the adequacy of consumer disclosures. It recorded a charge of approximately $179 million in the fourth quarter, for costs associated with the settlement and related expenses. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Progressive Leasing, a subsidiary of Aaron's, Inc. (AAN), has decided to settle the FTC investigation related to the adequacy of consumer disclosures. "Although we disagree with the FTC's allegations, we have agreed to settle this matter to avoid the expense, management distraction and uncertainty caused by protracted litigation," said John Robinson, CEO of Aaron's. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
(RTTNews) - Progressive Leasing, a subsidiary of Aaron's, Inc. (AAN), has decided to settle the FTC investigation related to the adequacy of consumer disclosures. Progressive will pay $175 million to the FTC with no admission of wrongdoing. It recorded a charge of approximately $179 million in the fourth quarter, for costs associated with the settlement and related expenses.
|
8964.0
|
2020-04-01 00:00:00 UTC
|
Oversold Conditions For Aaron's (AAN)
|
AAN
|
https://www.nasdaq.com/articles/oversold-conditions-for-aarons-aan-2020-04-01
|
nan
|
nan
|
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $21.02 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.7. A bullish investor could look at AAN's 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares:
Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $21.32.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $21.02 per share. A bullish investor could look at AAN's 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $21.32.
|
A bullish investor could look at AAN's 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $21.32. In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $21.02 per share.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $21.02 per share. A bullish investor could look at AAN's 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $21.32.
|
In trading on Wednesday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $21.02 per share. A bullish investor could look at AAN's 28.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $13.005 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $21.32.
|
8965.0
|
2020-03-17 00:00:00 UTC
|
Ex-Dividend Reminder: Aaron's, Sempra Energy and QTS Realty Trust
|
AAN
|
https://www.nasdaq.com/articles/ex-dividend-reminder%3A-aarons-sempra-energy-and-qts-realty-trust-2020-03-17
|
nan
|
nan
|
Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, Aaron's Inc (Symbol: AAN), Sempra Energy (Symbol: SRE), and QTS Realty Trust Inc (Symbol: QTS) will all trade ex-dividend for their respective upcoming dividends. Aaron's Inc will pay its quarterly dividend of $0.04 on 4/7/20, Sempra Energy will pay its quarterly dividend of $1.045 on 4/15/20, and QTS Realty Trust Inc will pay its quarterly dividend of $0.47 on 4/7/20. As a percentage of AAN's recent stock price of $23.21, this dividend works out to approximately 0.17%, so look for shares of Aaron's Inc to trade 0.17% lower — all else being equal — when AAN shares open for trading on 3/19/20. Similarly, investors should look for SRE to open 1.17% lower in price and for QTS to open 0.90% lower, all else being equal.
Below are dividend history charts for AAN, SRE, and QTS, showing historical dividends prior to the most recent ones declared.
Aaron's Inc (Symbol: AAN):
Sempra Energy (Symbol: SRE):
QTS Realty Trust Inc (Symbol: QTS):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.69% for Aaron's Inc, 4.67% for Sempra Energy, and 3.61% for QTS Realty Trust Inc.
In Tuesday trading, Aaron's Inc shares are currently down about 4.1%, Sempra Energy shares are up about 0.9%, and QTS Realty Trust Inc shares are up about 4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As a percentage of AAN's recent stock price of $23.21, this dividend works out to approximately 0.17%, so look for shares of Aaron's Inc to trade 0.17% lower — all else being equal — when AAN shares open for trading on 3/19/20. Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, Aaron's Inc (Symbol: AAN), Sempra Energy (Symbol: SRE), and QTS Realty Trust Inc (Symbol: QTS) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for AAN, SRE, and QTS, showing historical dividends prior to the most recent ones declared.
|
Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, Aaron's Inc (Symbol: AAN), Sempra Energy (Symbol: SRE), and QTS Realty Trust Inc (Symbol: QTS) will all trade ex-dividend for their respective upcoming dividends. Aaron's Inc (Symbol: AAN): Sempra Energy (Symbol: SRE): QTS Realty Trust Inc (Symbol: QTS): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of AAN's recent stock price of $23.21, this dividend works out to approximately 0.17%, so look for shares of Aaron's Inc to trade 0.17% lower — all else being equal — when AAN shares open for trading on 3/19/20.
|
Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, Aaron's Inc (Symbol: AAN), Sempra Energy (Symbol: SRE), and QTS Realty Trust Inc (Symbol: QTS) will all trade ex-dividend for their respective upcoming dividends. Aaron's Inc (Symbol: AAN): Sempra Energy (Symbol: SRE): QTS Realty Trust Inc (Symbol: QTS): In general, dividends are not always predictable, following the ups and downs of company profits over time. As a percentage of AAN's recent stock price of $23.21, this dividend works out to approximately 0.17%, so look for shares of Aaron's Inc to trade 0.17% lower — all else being equal — when AAN shares open for trading on 3/19/20.
|
As a percentage of AAN's recent stock price of $23.21, this dividend works out to approximately 0.17%, so look for shares of Aaron's Inc to trade 0.17% lower — all else being equal — when AAN shares open for trading on 3/19/20. Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, Aaron's Inc (Symbol: AAN), Sempra Energy (Symbol: SRE), and QTS Realty Trust Inc (Symbol: QTS) will all trade ex-dividend for their respective upcoming dividends. Below are dividend history charts for AAN, SRE, and QTS, showing historical dividends prior to the most recent ones declared.
|
8966.0
|
2020-02-24 00:00:00 UTC
|
Peek Under The Hood: EZM Has 10% Upside
|
AAN
|
https://www.nasdaq.com/articles/peek-under-the-hood%3A-ezm-has-10-upside-2020-02-24
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. MidCap Fund ETF (Symbol: EZM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $45.85 per unit.
With EZM trading at a recent price near $41.87 per unit, that means that analysts see 9.50% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of EZM's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Cinemark Holdings Inc (Symbol: CNK), and Welbilt Inc (Symbol: WBT). Although AAN has traded at a recent price of $43.33/share, the average analyst target is 59.76% higher at $69.22/share. Similarly, CNK has 38.98% upside from the recent share price of $29.14 if the average analyst target price of $40.50/share is reached, and analysts on average are expecting WBT to reach a target price of $18.83/share, which is 34.43% above the recent price of $14.01. Below is a twelve month price history chart comparing the stock performance of AAN, CNK, and WBT:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
WisdomTree U.S. MidCap Fund ETF EZM $41.87 $45.85 9.50%
Aaron's Inc AAN $43.33 $69.22 59.76%
Cinemark Holdings Inc CNK $29.14 $40.50 38.98%
Welbilt Inc WBT $14.01 $18.83 34.43%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Although AAN has traded at a recent price of $43.33/share, the average analyst target is 59.76% higher at $69.22/share. WisdomTree U.S. MidCap Fund ETF EZM $41.87 $45.85 9.50% Aaron's Inc AAN $43.33 $69.22 59.76% Cinemark Holdings Inc CNK $29.14 $40.50 38.98% Welbilt Inc WBT $14.01 $18.83 34.43% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of EZM's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Cinemark Holdings Inc (Symbol: CNK), and Welbilt Inc (Symbol: WBT).
|
Three of EZM's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Cinemark Holdings Inc (Symbol: CNK), and Welbilt Inc (Symbol: WBT). WisdomTree U.S. MidCap Fund ETF EZM $41.87 $45.85 9.50% Aaron's Inc AAN $43.33 $69.22 59.76% Cinemark Holdings Inc CNK $29.14 $40.50 38.98% Welbilt Inc WBT $14.01 $18.83 34.43% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAN has traded at a recent price of $43.33/share, the average analyst target is 59.76% higher at $69.22/share.
|
Three of EZM's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Cinemark Holdings Inc (Symbol: CNK), and Welbilt Inc (Symbol: WBT). Although AAN has traded at a recent price of $43.33/share, the average analyst target is 59.76% higher at $69.22/share. Below is a twelve month price history chart comparing the stock performance of AAN, CNK, and WBT: Below is a summary table of the current analyst target prices discussed above:
|
WisdomTree U.S. MidCap Fund ETF EZM $41.87 $45.85 9.50% Aaron's Inc AAN $43.33 $69.22 59.76% Cinemark Holdings Inc CNK $29.14 $40.50 38.98% Welbilt Inc WBT $14.01 $18.83 34.43% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of EZM's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Cinemark Holdings Inc (Symbol: CNK), and Welbilt Inc (Symbol: WBT). Although AAN has traded at a recent price of $43.33/share, the average analyst target is 59.76% higher at $69.22/share.
|
8967.0
|
2020-02-22 00:00:00 UTC
|
Validea Kenneth Fisher Strategy Daily Upgrade Report - 2/22/2020
|
AAN
|
https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-2-22-2020-2020-02-22
|
nan
|
nan
|
The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
MAXIMUS, INC. (MMS) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MAXIMUS, Inc. provides business process services (BPS) to government health and human services agencies. The Company operates through three segments: U.S. Federal Services, Health Services and Human Services. The U.S. Federal Services segment provides BPS and program management for large government programs, independent health review and appeals services for both the United States Federal Government, and state-based programs and technology solutions for civilian federal programs. The Health Services segment provides a range of BPS, as well as related consulting services, for state, provincial and national government programs. The Human Services segment provides national, state and local human services agencies with a range of BPS and related consulting services for welfare-to-work, child support, higher education and K-12 special education programs.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BJ'S RESTAURANTS, INC. (BJRI) is a small-cap growth stock in the Restaurants industry. The rating according to our strategy based on Kenneth Fisher changed from 60% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: BJ's Restaurants, Inc. owns and operates restaurants. The Company segment includes casual dining company-owned restaurants. Each of its restaurants is operated either as a BJ's Restaurant & Brewhouse, a BJ's Restaurant & Brewery, a BJ's Pizza & Grill or a BJ's Grill restaurant. The Company's restaurants offer craft beers and other beers, as well as a selection of appetizers, entrees, pastas, burgers and sandwiches, specialty salads, and desserts, including its warm pizza cookie dessert, the Pizookie. As of February 27, 2017, the Company owned and operated 189 restaurants located in 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The rating according to our strategy based on Kenneth Fisher changed from 90% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aaron's, Inc. (Aaron's) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron's stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MGP INGREDIENTS INC (MGPI) is a small-cap growth stock in the Food Processing industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MGP Ingredients, Inc. is a producer and supplier of distilled spirits, and specialty wheat protein and starch food ingredients. The Company's distilled spirits include bourbon and rye whiskeys, and grain neutral spirits, including vodka and gin. The Company's segments include distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed and fuel grade alcohol. The ingredient solutions segment consists of specialty starches and proteins, commodity starches and commodity proteins. The distillery products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. It is also a producer of industrial alcohol for use in both food and non-food applications. The Company's distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt and milo), and its ingredient products are derived from wheat flour.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Kenneth Fisher has returned 379.31% vs. 235.76% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. As of February 27, 2017, the Company owned and operated 189 restaurants located in 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. Company Description: MAXIMUS, Inc. provides business process services (BPS) to government health and human services agencies. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here BJ'S RESTAURANTS, INC. (BJRI) is a small-cap growth stock in the Restaurants industry.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. The U.S. Federal Services segment provides BPS and program management for large government programs, independent health review and appeals services for both the United States Federal Government, and state-based programs and technology solutions for civilian federal programs.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. Company Description: BJ's Restaurants, Inc. owns and operates restaurants. The Company's segments include distillery products and ingredient solutions.
|
8968.0
|
2020-02-20 00:00:00 UTC
|
Aaron's (AAN) Q4 2019 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-q4-2019-earnings-call-transcript-2020-02-21
|
nan
|
nan
|
Image source: The Motley Fool.
Aaron's (NYSE: AAN)
Q4 2019 Earnings Call
Feb 20, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Carrie, and I will be your conference coordinator. At this time, I would like to welcome everyone to the Aaron's, Inc. fourth-quarter 2019earnings conference call
[Operator instructions] Please note, this event is being recorded. I will now turn the call over to Mr. Michael Dickerson, vice president of corporate communications and investor relations for Aaron's, Inc. You may begin your conference.
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
Thank you, and good morning, everyone. Welcome to the Aaron's, Inc. fourth-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc.
president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations. Many of you have already seen a copy of our earnings release issued this morning. For those of you who have not, it is available on the investor relations section of our website at aarons.com.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2019
During this call, certain statements we make will be forward-looking. I want to call your attention to our safe harbor provision for forward-looking statements that can be found at the end of our earnings release. The safe harbor provision identifies risks that may cause actual results to differ materially from the content of our forward-looking statements. Also, please see our Form 10-K for the year ended December 31, 2019 which will be filed later this morning, for a description of the risks related to our business that may cause the actual results to differ materially from our forward-looking statements.
Listeners are cautioned not to place undue emphasis on forward-looking statements, and we undertake no obligation to update any such statements. On today's call, we will be referring to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, non-GAAP net earnings and non-GAAP EPS which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release. The company believes that these non-GAAP financial measures provide meaningful insight into the company's operational performance and cash flows and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding the company's ongoing operational performance.
Lastly, effective as of the first quarter of 2019, the company adopted ASC 842, a new standard related to accounting for leases. In our press release, we have added additional information to the revenue table to provide you a year-over-year comparison on an equivalent basis. Throughout our call today, we will make comments related to the comparability of certain items with the prior year and have assumed in these comments that the adoption of this new standard was made at the beginning of each period compared. With that, I will now turn the call over to John Robinson.
John Robinson -- President and Chief Executive Officer
Thanks, Mike, and thank you all for joining us today. I'm pleased 2019 ended on such a positive note. Progressive's invoice growth in the fourth quarter, as expected, accelerated nicely. The Aaron's business collections performance also improved which contributed to positive same-store revenues in the quarter and strong adjusted EBITDA.
On a consolidated basis, we achieved revenue growth of 8.4% over the same quarter in 2018. This increase is primarily a result of continued strong invoice growth at progressive, partially offset by the closure of underperforming Aaron's stores in the first half of 2019. Adjusted EBITDA and diluted non-GAAP EPS were $125.2 million and $1.15 per share, respectively, both up low double digits from the fourth quarter of 2018. The progressive team delivered another record quarter for both revenue and earnings.
Invoice volume grew 34.4% over the prior year fourth quarter due to the recent rollout of additional locations from retailers added in 2019 and increased productivity from existing retailers. The Aaron's business same-store revenues and adjusted EBITDA increased from the prior year as a result of the improvement in collections performance throughout the quarter, expense management and gains on real estate sales. As we enter 2020, I'm encouraged by progressive's prospects for continued strong results and the progress of the transformational initiatives in the Aaron's business. Given our optimism, we continue to invest in people and technology to deliver future growth.
We remain conservatively capitalized with a net debt-to-adjusted EBITDA ratio of less than one turn and ended the fourth quarter with available liquidity of approximately $440 million. Our strong balance sheet and disciplined approach to capital allocation provide us flexibility to continue to invest in our businesses, pursue M&A opportunities and return capital to shareholders. Finally, as we disclosed in our earnings release this morning, progressive has also reached an agreement in principle with FTC staff which we expect will result in progressive paying 175 million to the FTC and agreeing to a consent order with respect to compliance-related activities such as monitoring, disclosure and reporting. We have agreed to this proposed settlement to avoid the distraction and uncertainty caused by protracted litigation.
Taking great care of customers is the centerpiece of progressive's business philosophy and the reason the company has had so much success. For many years, progressive has led significant innovation in a lease-to-own marketplace on behalf of the customer. There are several other capable competitors also driving innovation, but as the leader in the industry, progressive is subject to more scrutiny. Ultimately, our objective has always been for every customer to be fully informed about their transaction and have an exceptional customer experience.
The team is constantly looking at new and innovative ways to meet this objective and are always willing to incorporate feedback on how to better serve customers. Responding to the FTC's inquiry has required a significant amount of company resources and management attention. Over an 18-month period, the team provided millions of records and answered numerous questions regarding progressive's offerings and business practices. While this inquiry has been difficult, we believe progressive is stronger and in a better competitive position, having been through this process.
Now, I'll turn the call over to Ryan to discuss progressive's outstanding fourth-quarter performance and plans for 2020.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, John. I'm very pleased with the team's execution in the quarter and for all of 2019. We continue to deliver on key objectives, including the launch of large national retailers and investments in people and infrastructure which will help contribute to growth in future periods. Net revenues rose 22.3% in the quarter as compared to the fourth quarter of 2018 to a record 559.5 million.
The revenue performance was driven by consistently strong invoice growth throughout the year, capped by a 34.4% increase in the fourth quarter. The growth in the fourth quarter was a result of a 9% increase in active doors driven by rollouts of new retail partner locations and a 23.3% increase in invoice per active door. Adjusted EBITDA increased 17.6% as compared to the same period last year, driven by the strong growth in revenue, offset by slightly higher-than-expected onboarding costs for national retailers and a year-over-year increase in write-offs. As anticipated, accelerating invoice growth in the fourth quarter drove an increase in our initial impairment reserve on newly originated leases.
As a result, write-offs were 6.6% of revenues in the fourth quarter of 2019, up from the 5.8% reported in the year ago period. We ended the full-year 2019 at 7.2% of revenues compared to 7% in 2018, demonstrating consistent performance within our targeted annual range of 6% to 8% of revenues. As we look to our growth plan for 2020 and beyond, we expect to benefit from the continued ramp of newly on-boarded retailers, as well as from incremental growth opportunities across our existing partnerships. Historically, we've exhibited a trend of productivity improvement over time with many of our long-standing partners, supported by a strong and increasing rate of repeat business from existing customers.
We expect that trend to continue. 2019 was an exceptionally successful year in terms of pipeline conversion. That said, the available addressable market remains large, and we plan to continue our investment in people and technology to attract and convert new opportunities. Consistent with past practice, our outlook for 2020 includes anticipated growth from our existing retail partners, as well as the expected conversion of a portion of our retail partner pipeline where we have near-term visibility.
EBITDA margin in 2020 is expected to be below 2019 but well within our long-term annual target range of 11 to 13% of revenues. The lower EBITDA margin is primarily due to pressure on gross margin from the rapid acceleration in invoice growth and the resulting younger portfolio which we expect will increase 90-day buyout activity in the first half of 2020. In addition, our plan for this year includes approximately 15 million of incremental investments to support enhanced compliance initiatives related to our tentative agreement with the FTC. We believe these investments will further enhance the customer experience and strengthen progressive's competitive position.
Again, I'm tremendously proud of the team's performance in the quarter and the highly productive relationships we forged with our retail partners. We believe our investments in people and technology position us well to continue to grow existing partnerships, as well as attract, convert and profitably scale new retail partner opportunities. I'll now turn the call over to Douglas to discuss the Aaron's business fourth-quarter results and the plan for 2020.
Douglas Lindsay -- President, Aaron's Business
Thanks, Ryan. I'm happy to report that in the fourth quarter, the Aaron's business successfully returned collections to normalized levels and generated growth in both adjusted EBITDA and same-store revenues. We achieved these results by rebalancing our sales and collection efforts, as well as by reducing operating expenses. Same-store revenues increased 0.4% in the quarter primarily due to the sequential improvement in collections performance.
For the full year of 2019, same-store revenues were flat, an improvement of 143 basis points from 2018. Recurring revenue written into the portfolio declined 3.3% in the quarter as lead originations were negatively impacted by the rebalancing of our sales and collection efforts and by ongoing weakness in consumer electronics which was 20% of lease revenues in 2019. Excluding consumer electronics, recurring revenue written into the portfolio increased 4% in the quarter, with growth occurring in our highest margin categories. Recurring revenue written is a leading indicator of same store revenues which would have been low-single-digit positive in both 2019 and 2018, excluding the impact of consumer electronics.
E-commerce continues to be a bright spot for the business, representing 14.3% of overall recurring revenue written in the fourth quarter of 2019, up from 10.2% in the fourth quarter of 2018. E-commerce recurring revenue written was up 35.3% compared to the fourth quarter of 2018. E-commerce remains one of our key growth initiatives in an area of continued investment. Adjusted EBITDA increased $1.7 million or 3.6% compared to the year ago quarter.
Adjusted EBITDA increase is a result of a sequential improvement in collections performance, gains on real estate sales and expense management which were partially offset by higher write-offs. Write-offs were 7.3% of revenues in the fourth quarter, down slightly from the 7.4% in the third quarter, and as expected, elevated compared to the 5.1% reported in the same period last year. The increase in write-offs was primarily driven by the negative impact on collections performance created by our new sales initiatives in the third quarter, the closure of 155 stores in 2019 and an increasing mix of e-commerce revenues. We expect the sequential improvement in write-offs to continue going forward as we return to normalized collections performance.
As a result of the reduction in recurring revenue written into the portfolio and the elevated write-offs in the fourth quarter, we entered 2020 with a lower portfolio balance than 2019. As we look to our 2020 outlook, we expect the business to be challenged by the lower portfolio size, continued pressure from consumer electronics, partially offset by continued cost savings throughout the business and lower write-offs. As you know, over the last few years, we've been testing various formats to develop our next-generation store concept. In 2019, we opened nine new stores across several states.
Thus far, these next-generation stores are achieving significant lift in lease originations and are attracting a newer and younger customer. Given that success, we expect to open approximately 25 next generation stores this year. We will continue to monitor the results of these stores and continue to take a measured approach to future investment decisions. I'll now turn the call over to Steve to discuss our fourth-quarter financial results and 2020 outlook.
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Thanks, Douglas. On a consolidated basis, revenues for the fourth quarter of 2019 were 1 billion, an increase of 8.4% over the same period a year ago when calculated on a basis consistent with the 2019 adoption of ASC 842. Adjusted EBITDA for the company was 125.2 million for the fourth quarter of this year compared to 112.7 million for the same period last year, an increase of 12.5 million or 11.1%. Adjusted EBITDA was 12.5% of revenue in the fourth quarter of 2019, up 30 basis points from the 12.2% in the fourth quarter of 2018 on a constant accounting basis.
Adjusted EBITDA includes approximately 5.6 million of gains from real estate sales related to certain Aaron's business locations. Diluted EPS on a non-GAAP basis for the quarter increased 12.7% and to $1.15 versus $1.02 in the prior year quarter. Operating expenses decreased approximately 48.5 million. On a constant accounting basis, operating expenses would have increased 18.6 million in the fourth quarter of 2019 compared to the year ago period.
Increases in write-offs in both businesses and increased investments in personnel and progressive account for more than the year-over-year increase in operating expenses, partially offset by reductions in occupancy costs and advertising expenses in the Aaron's business. During the fourth quarter, the company recorded a $175 million charge and 4 million for fourth-quarter legal expenses related to an agreement in principle to settle the progressive FTC matter. Cash generated from operating activities was 317.2 million for the full-year 2019, and we ended the year with 57.8 million in cash compared to 15.3 million at the end of 2018. During the quarter, we repurchased 513,900 shares of the company's common stock at an average price of $58.05 per share, returning approximately 32.2 million to our shareholders through these repurchases and our quarterly cash dividend.
For the full-year 2019, the company returned approximately 78.7 million related to the purchase of approximately 1,156,000 common shares at approximately $59.90 per share and 9.4 million in dividends. We remain conservatively capitalized and ended the fourth quarter with available liquidity of $444 million and a net debt-to-adjusted EBITDA ratio of 0.65. On January 21st, 2020, the company completed an amendment to its credit facilities, which, among other changes, extends the maturity date to January of 2025 and increases the maximum revolver commitment from 400 million to 500 million. For 2020, we have included our initial outlook in the earnings release issued this morning.
Cash flows from operating activities before the impact of the charge related to the tentative agreement with the FTC are expected to be approximately 375 million to 425 million in 2020. We will continue to evaluate the use of our excess cash, prioritizing investments in our businesses, followed by potential M&A activity and returning capital to shareholders through share buybacks and dividends. As of December 31st, 2019, the company had approximately 262 million of availability on its 500 million share repurchase authorization. On a consolidated basis, we expect lower gross margin, and therefore, lower adjusted EBITDA margin in the first half of 2020 due to the rapid acceleration in invoice growth and the resulting younger portfolio at progressive which we expect will increase 90-day buyout activity.
Due to the higher buyout activity at progressive and lower year-over-year results in the Aaron's business, first quarter adjusted EBITDA and non-GAAP EPS is expected to be the lowest quarter of the year. Consolidated revenues are expected to be split roughly 50-50 between the first half and the second half of 2020, while adjusted EBITDA, adjusted EBITDA margin and non-GAAP EPS are expected to trail the prior year in the first half and exceed the prior year in the second half. These estimates are based on an assumed annual effective tax rate of approximately 24% which will trend similarly to the quarterly effective tax rates in 2019. We are also assuming approximately 68 million shares outstanding throughout the year.
Our 2020 outlook incorporates the expected impact of progressive's agreement in principle with the FTC staff. Because this matter is still pending final approval, we are unable to comment beyond what is in our fourth-quarter earnings release, Form 10-K and our prepared comments. With that, I will now turn the call over to the operator, who will assist with the question and answer period.
Questions & Answers:
Operator
[Operator instructions] The first question will come from Bill Chappell of SunTrust.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Thanks, good morning.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Good morning, Bill.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Hey, two questions. I guess, first, on progressive, I appreciate the color kind of on the 90-day payoffs affecting kind of 1Q, but trying to understand how you get some relief as you move to the back half or into even 2021 just as I assume these two big new customers are still at early stages on, in terms of percentage of transactions. And as they get bigger throughout the year and they ramp, won't you continue to have them? It will keep the portfolio fairly new. And so, help me understand how, as we move to the back half and into 2021, that is alleviated.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, Ryan here. Thanks for the question, Bill. If you look back, what's interesting is we saw similar trends play out in 2018. And if you look back to the latter part of 2017, later quarters of that year, we're generating 30-plus percent growth rates.
You saw the same thing happen in the first half of 2018 where you experienced higher 90-day buyout rates because you had a younger average portfolio, so we're just expecting that same trend to play out in 2020. And I know you know the dynamic, but just to sort of state it here. When you generate those high levels of invoice growth, you blend in younger leases. And younger leases, by definition, are in the period of their lease, where they're eligible for those discounted early buyout options as opposed to older and older portfolio on average which may be outside of that window, so we're just expecting similar trends to play out in 2020 that we saw in 2018.
And as you pointed out, we're very excited about those opportunities. We think they represent great long-term growth potential. Obviously, all of which won't be realized in year one, but we're excited about the results we've delivered thus far and pretty optimistic for what they'll do in 2020 which is incorporated in the plan and certainly expect them to be big contributors going forward.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
OK. And then, Doug, just back to the kind of the same-store sales outlook for this year, I mean, it looked like, over the past couple of years, we were nearing more kind of a flat or maybe even up same-store sales performance, especially with the closure of doors and so it's kind of negative 2% to negative 4%. Is that kind of the new long-term algorithm for the business? Or is there something else pressuring it that I'm missing? Just a little more color there would be great.
Douglas Lindsay -- President, Aaron's Business
Yes, Bill, thanks for the question. As you recall, we've had consistently had delivery pressure on the business, kind of down the mid-single digits, and we've overcome that over the last few years by raising ticket in our merchandising strategy which has allowed us to get to positive comps which we saw several quarters in 2019. You may also recall, in the third quarter, we rolled out a sales initiative that got great lift in sales, but we came under collection pressure. Really proud of the team in the fourth quarter for scrambling, and particularly in the portfolio of business, to get collections back where they need to be and delivering positive comps in the fourth quarter.
As part of that, in the fourth quarter, we had some high churn in the portfolio. We're writing off deals that were originated in Q3 that churned out of the portfolio in Q4. On top of that, as I mentioned in my remarks, we had continued pressure in consumer electronics, that put pressure on the revenue we're putting into the portfolio. The net-net of both of those things, as we ended the year with a lower portfolio size, into 2019 with lower portfolio size than we did in 2018, and that impact carries through the course of the year.
As we look into 2020, not only are we entering with lower portfolio size. We'll also have some additional charge-offs or write-offs that'll happen in the first quarter related to Q3. We expect that to churn through the portfolio early in the year and for our write-offs to lessen over the course of the year and the full year write-offs next year to be better than they were in 2019. We're also expecting, over the course of the year, to see pressure in consumer electronics continue.
The good news is, consumer electronics, despite being down, we're seeing growth in both furniture and appliances which, over the course of the year, and those are higher-margin products, as I mentioned, over the course of the year, will begin to improve margin despite the lessening of consumer electronics. So, net-net, the lower beginning balance, the trends in consumer electronics are causing our same-store comps to be in that 2 to 4% negative range. We do expect improvement over the course of the year in collections, write-offs and margin as we see a lessening of that CE component.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. Thanks so much. I'll turn it over.
Operator
The next question will come from Brad Thomas of KeyBanc Capital Markets.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Thanks, good morning, everyone. I guess, just to dovetail – good morning. Just to dovetail off the last question. Douglas, with the CE underperforming, obviously, I think that seems to be pretty widespread industry dynamic and declining ASP is a headwind for you.
But I'd just be curious as you try to look at the ramp that occurred out of Best Buy that coincided with the CE business slowing down, what's your latest assessment of how the cannibalization dynamic is affecting you on the core side?
Douglas Lindsay -- President, Aaron's Business
Yes. I'm sorry, Brad. I didn't catch the middle word there. Could you just repeat that last part?
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Oh, a question around how the cannibalization is evolving as partners like Best Buy ramp up in consumer electronics?
Douglas Lindsay -- President, Aaron's Business
Oh, I see. Yes, we're not hearing much on that at all, actually, in the business. We've been facing these headwinds in consumer electronics for a long time. If I look back, and by the way, we define consumer electronics as television, audio and gaming.
We've been seeing that as a lessening part of our business. If you look at the pie chart in our 10-K, you'll see seven years ago, it represented about 35% of revenue in 2019. It's down to about it's down to, at 20% of revenue, so we've been seeing this lessening over time. To us, it's all about commoditization of these electronics.
As you know, there's been significant price compression in the market, generally a lack of innovation, and then we have these new providers of lower-cost products entering the market. We expect that to continue. We are not seeing any cannibalization per se. This is just a continuation of a trend.
As a matter of fact, as you look at purchasing TVs, we're challenged to purchase TVs in the Aaron's business at any lower cost and you could buy them over the holidays at Walmart or any place else. So, when you're in the leasing business, when a 65-inch TV is selling for under $400, it becomes very challenging to put it on a lease. In addition to that, as you know, consumer preferences are changing, the way people consume content and everything else, so we expect this to continue to be under pressure. What we're doing about it is really testing various things to drive volume, whether it be price tests, remerchandising of CE in our stores and bundling with other products.
But over the long term, we think CE is a declining category, and we need to replace it with new products which we're working on actively right now, and you should expect to see those in our show rooms this coming year.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Great. And then, I guess, a question about thinking about the core, for John and Steve, if you want to chime in. Just given the step down in EBITDA, we're looking for the core in 2020. Some of these headwinds may be transitory, some may be items that persist.
Does it change your thinking at all on how big the core should be? And potentially, any strategic options that you might have for it?
John Robinson -- President and Chief Executive Officer
Yes, Brad, it's John. Thanks for the question. Yes, we really believe in the Aaron's business and the direct-to-consumer channel. There's a lot of advantages for us to control that channel to the customer, and we still believe it's an attractive investment for us to make.
With Aaron's business, it has been a leader for decades, and we believe it will continue to be in that direct to consumer model. We think the model has to be a robust e-com platform, and probably, over time, fewer, better looking, better located and ultimately, higher-volume stores. And those two channels will support, we believe, the same markets or even perhaps some new ones, and we're fortunate to be able to execute on that because we've got the supply chain in place and last-mile delivery already in place, so we feel like we have the right assets. The team is doing a really good job of trying to manage transformation toward that model while also managing near term profitability, and they've done a good job.
Douglas and the team really have done a good job on that, but it's tough. They've discovered some new kind of faster-moving water with e-comm and with these new store concepts, and we believe they're on the right track in terms of transforming them, but we're going to keep taking a prudent approach to how much capital we put in the business, and we'll continue to evaluate results as we go, and I think that's one of the benefits. One of the good news about the IRS business is that as we move to that model, it does generate quite a bit of cash as you take working capital out of the system, so that's a very attractive aspect of the business model that helps with that. In terms of kind of bigger picture, strategic thinking, Steve has a strategy team.
He and I work with that team all the time, thinking about how we optimize the assets we have and then looking outside the company for opportunities that could enhance what we have, and that's kind of an ongoing process that we're constantly thinking about. And we understand it's our job to do that and to figure out the best ways to create long-term value, so we're certainly always thinking about those sorts of things.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
That's helpful, John. And if I could squeeze one more in here for Ryan. I'll let you get off here. Really impressive invoice growth here in the fourth quarter, the 34% number.
That's usually a good indicator of what revenues may look like in the next quarter, at least directionally. Can you help us think about how to model progressive revenues in the next few quarters, what that cadence might look like? And I guess, if I try to push you a little bit here, you're guiding full-year revenue up 19 to 24%, even though we're coming off of this great 34% number. And obviously, you should have Lowe's ramping up, too, this year. Any more color on how to think about revenue guidance would be great.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, happy to share some thoughts on that, Brad. Thanks for the question. I appreciate you mentioned in Q4, it was a very strong quarter at 34% growth, very excited about that. Obviously, the team worked really hard to deliver those results.
As that translates into 2020, I'll just offer sort of a few ways to think about it. First, a meaningful portion of that growth that we experienced in Q4 was obviously related to the holiday shopping season and the seasonality of consumer electronics in particular, and that trend doesn't extend similarly to other verticals necessarily or quarters, so that's one thing, I'd say. The second thing is, as we've seen previously, and I mentioned this a bit earlier, with other national launches, improving productivity is really more of a multiyear opportunity. We're obviously very happy with where we're at and the opportunity in 2020, but also happy with the years ahead and the opportunity that lies there.
And we're seeking -- no, we're working hard with our partners to realize that opportunity. And the other thing I would mention is that while we believe it continues to be a very large market that is the vast majority of which remains unserved in keeping with past practice. We've really only factored in pipeline conversion where we have near-term visibility. So, that's just how we think about it, that's just the approach we take and sort of blend all those in with where we're at.
We're very bullish about the year. We're guiding to a midpoint that assumes accelerating revenue growth on 2.5 billion of net revenue, so it's becoming a very large business. To generate accelerating range of revenue growth on that has us very excited, and I think we're on the trajectory we expected to be on.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Gotcha. Thanks so much.
Operator
The next question will come from Bobby Griffin of Raymond James.
Bobby Griffin -- Raymond James -- Analyst
Good morning, everybody. Thank you for taking my questions. Not to stay on the core, and I appreciate all the details you guys have given so far, but I'm still struggling to understand the moving parts on the profitability aspect. It seems like consumer electronics has been pretty weak all year.
We're calling outright higher-margin business on other areas in the category. So, what exactly has really changed since the end of 3Q to have the core profitability go from flattish to slightly down? So all of a sudden, down 35 plus million in EBITDA for next year?
Douglas Lindsay -- President, Aaron's Business
Yes, Bobby. This is Douglas. So, if you look at our EBITDA last year, right, we came in at 166. There was a little bit of hurricane benefit in that number, and we're now guiding down to 125 to 135.
100% or more than 100% of that delta has to do with this beginning balance decline that we're coming into the year on, and that has to do with, as I mentioned before, on same-store comps, churning out of the portfolio of some deals in the third quarter and fourth-quarter related to lower collections and softness in CE. The good news is that we are growing in three of our other major categories that are higher-margin categories. But despite that growth and the offsetting we see over the course of the year, that lower beginning balance has put pressure on the overall earnings. And as you know, we're a high operating leverage business and high fixed costs, so we're working actively to take expenses out.
We are expecting lower write-offs over the course of the year and we are making some investments in our e-comm and real estate strategy over the course of the year, but the main delta year over year is the beginning balance and slight and impact to CE.
Bobby Griffin -- Raymond James -- Analyst
OK. Was the holiday quarter itself just weaker around that than originally anticipated? Or how we are trending to end 3Q? And then, I guess, the second part of my question, completely unrelated, but is there, what is the opportunity on the real estate side of things? If this is kind of the new normal for the core, is there any initiatives or kind of first thinking of pulling out stores where we could have less stores but more volume per stores to try to improve where this profitability is in the core business?
Douglas Lindsay -- President, Aaron's Business
Sure. First of all, the holiday season was softer than we had anticipated. Again, the team was spending a lot of energy in the early fourth quarter and actually through the quarter, getting collections back in line which they did a great job. Our collections went up 350 basis points from where they were in the third quarter, and we were able to post positive comps because of that.
We saw softness, really, primarily in CE in the fourth quarter, but we saw strength in our other three categories which are furniture, appliance and outdoor. All of them were positive growth in the quarter. I think they were a bit dampened by our collection efforts and sort of rebalancing the portfolio, but I feel we came out of Q4 fully balanced and ready to sort of attack the New Year. And so, we're expecting growth in those three categories, our highest-margin categories, but not enough to offset this continued decline in CE.
In terms of real estate, John mentioned this, but we're going to be constantly looking at our real estate portfolio. One thing we've done, I think, well over the last three years is shortened the term of our real estate leases, so we have a lot of flexibility in our portfolio. We have a real estate committee regulated to meet, solutions for store profitability, see where there are opportunities for closed mergers, but we're really excited about that in combination with our new store concept. This new store concept, just our renovates in place, are getting lift, and we believe those are good investments.
But when you combine that with repositioning our real estate and potentially merging customers into one box, we think we get leverage on our fixed cost base and a higher return, so we're going to start doing a little bit more of that in 2020. You should expect continued store closures over the course of the year, but many of those will be into boxes or sort of mergers of stores into bigger boxes with our new store concept. We're really excited about that. We've hired a real estate team and are building capabilities to do that faster than we have in the past, and with these shortened lease terms, it's going to allow us to pivot the portfolio and drive profitability.
Bobby Griffin -- Raymond James -- Analyst
OK. I appreciate the details. Thank you again for answering my questions.
Operator
The next question will come from Kyle Joseph of Jefferies.
Kyle Joseph -- Jefferies -- Analyst
Hey, good morning, guys. Thanks for taking my questions. Ryan, I just want to get your outlook for credit performance in 2020, particularly given sort of the more immature portfolio and the higher 90-day buyout activity, and what sort of impact that has on loss rates?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, Scott. Happy to. Yes, we're happy with what we see in our lease portfolio metrics. Obviously, we explained the delta in Q4 relative to Q4 of 2018 by talking a little bit about the impact of growth and the provisioning.
I think you know this, but the nuance and how we booked that is that you have an initial reserve that you book on leased assets, and growth doesn't do any favors there. And so, the strong growth in the quarter really drove increased provisioning which is the primary driver of that delta, but happy with where we sit looking into the New Year. And obviously, when you see higher rates of 90-day buyouts that tends to be accompanied by lower write-offs, so it's kind of a healthy dynamic when it comes to portfolio metrics -- portfolio performance metrics.
Kyle Joseph -- Jefferies -- Analyst
Got it. That's helpful. And a follow-up for you as well, Ryan, just could you touch on the competitive environment in the virtual lease to own segment? And you talked about your pipeline and your overall conversion. But given the competitive dynamics, can you give us a sense for your pipeline in terms of whether it's regional or more nationwide retailers?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, it remains very competitive. I'm sorry to be a broken record on that one, but it's been intensely competitive for years now. There's a lot of competitors in this market. We have new folks who have entered, folks who've been around for a while sort of changing their strategy, and we're constantly innovating and evolving kind of in our own right but also in response to what we're seeing in the marketplace.
I expect that trend will continue. Invariably, those competitors that exist will become larger as they execute their strategies, and I expect they'll be more of a threat as we sort of go into the future. And we're -- that's how we've been thinking about the business, that's why we've been making the investments we have in people and technology, people and systems to continue to kind of lead out when it comes to the customer and retailer offer. Our teams are working very hard in that regard.
I'm very happy with how we're positioned today. I think we're positioned for a lot of success. And if you just -- I go back to it a lot, but we believe it's a $25 billion market, 5 to 6 billion of which is currently being served today, so the vast majority of what we're talking about is greenfield rather than share shift among existing competitors.
Kyle Joseph -- Jefferies -- Analyst
Sure. And then, last one for me. Sorry, also for Ryan, but so just talked about consumer electronics and the impact on the Aaron's business. Can you give us any color or any sort of impacts you're seeing on the progressive side of the business related to consumer electronics?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, yes, obviously, we're experiencing growth in that vertical given sort of recent opportunities that we've on-boarded, and we're pleased with the activity that we're seeing there. We're sort of on the front end of that given that dynamic of having introduced new partners, so less exposed to a variance on an existing trend in that regard.
Kyle Joseph -- Jefferies -- Analyst
Got it. That's it for me. Appreciate the time. Thanks, guys.
Operator
The next question will come from John Baugh of Stifel.
John Baugh -- Stifel Financial Corp. -- Analyst
Good morning. Thank you for taking my questions. I know you don't want to talk about the FTC settlement, and I'm not really talking about that. But I'm curious, and you called out the $15 million expense.
My question is simple. What are there any changes to the economics of the progressive transaction from whatever the FTC is asking you to do other than what I presume is a sort of a $15 million one-time expense to monitor or track or do whatever you have to do?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, John. I'll respond to the question about the investment in the business because I'm excited about the work we're doing there, that we've got a lot of teams who are doing great work, I think, that will benefit our customers and our retail partners. Generally speaking, I'll say we've got a lot of people in our product and tech departments working on enhancing the application process, and that's where the bulk of that spend is, is in those people and a bit of the systems, trying to get more information directly into the hands of customers as possible. We know this will help facilitate a frictionless process both online and at the point of sale.
A big part of that is innovating new ways to continue to provide a fully transparent experience for our customers, presenting disclosures to them throughout the process, and we spent a lot of time on innovation there. We expect to continue to spend a lot of time on that. We think it'll result in a very seamless, strong experience for our customers and our -- again, our product, our tech, our compliance teams are doing some excellent work there.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. And then, staying with you, Ryan, on the progressive side. We're well into the first quarter and I haven't heard any commentary around tax refunds in general. But the question that's specific to you, your new accounts, Best Buy and Lowe's.
Are you seeing early buyout activity that is in line with your expectations with those accounts, or is it materially off? And maybe a broader question. As you look at those two accounts, you obviously had some assumptions at the start of where they come out on an annual basis on profitability and did approvals or pricing or whatever you do in terms for them to account for that. Is that outlook changed at all based on the pattern you're seeing so far?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yes, I appreciate the question. I'll comment generally on what we expect to see from national accounts rather than sort of expectations on specific opportunities, but I'll say your intuition is right there. I know you didn't state it exactly, but I think what you'd expect from national accounts is a slightly different application profile than you would generally, one that's more predisposed toward 90-day buyouts, but also with the sort of lower incidence of write-offs that sort of compensates for that, and that's one of the dynamics that you see playing through our P&L in 2020. We obviously expected that trend, and that it's playing out in line with how we thought it would.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. And then, lastly, on the store side, appreciate all the color and the reasons why '19 -- '20 will be lower than ' 19 on EBITDA. And I don't know if this is for Douglas or John, but as we think about the pressures on CE and the expectations to continue, until that business gets to be a minor percent of your business, could we not be still looking at an environment next year where the progress in furniture, appliances, whatever, continues to get outweighed by CE? Or do you expect an inflection point even if CE just continues to shrink significantly?
John Robinson -- President and Chief Executive Officer
Yes, I mean, this is John. I'll give it a shot, and Douglas, you can correct me where I'm wrong, but it's a good question, John. And as Douglas said, CE was much more important to the business, five and seven years ago than it is today. Although it's still important at 20%, but 20% and shrinking as the other categories grow, so our expectation is there will be an inflection point.
Our goal is to offset the decline with new product introductions, as Douglas talked about. But while we still expect it to be a headwind, we aren't going to kind of estimate when there might be an inflection point. But if you look at the trends that we've experienced, you would certainly and if those continued, you could kind of figure out there is an inflection point that catches and from a margin standpoint, it probably happens even faster than from a same-store sales perspective, so that is kind of the thinking. But we're kind of not just sitting around waiting on that.
We're trying to innovate to find ways to offset it in the near term. But 20% and shrinking and the other categories growing, it definitely leads you to think that that could be the case.
John Baugh -- Stifel Financial Corp. -- Analyst
So are you thinking in terms of new products, new CE products? Or are we talking different verticals here? Or what are you looking at?
Douglas Lindsay -- President, Aaron's Business
Yes. I mean, John, we're looking at mobility devices which are sort of ways to get people around, particularly elderly people. Fitness, gaming, power tools, equipments, sporting goods, things like that. As you know, in the past, we've tested multiple things.
I think our franchisees are great sources of innovation and where we could go with product offerings, and the technology that we put in place in our direct procurement activity allows us to get product in much more efficiently than we have in the past.
John Robinson -- President and Chief Executive Officer
The other thing I'd add just to Douglas is that that I just kind thought of afterward, is the fact that the new store concept that the team has developed is definitely more furniture-centric. It's a static showroom in the front with kind of more and better furniture, so I think it probably accelerates the dynamic as that as those stores become more prominent in the system from a store count perspective.
John Baugh -- Stifel Financial Corp. -- Analyst
Thank you. Good luck.
John Robinson -- President and Chief Executive Officer
Thank you.
Operator
The next question will come from Anthony Chukumba of Loop Capital Markets.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Thank you for taking my question. So, I had a question about the Aaron's business and progressive in terms of like how integrated are those two businesses? I mean, it seems like the Aaron's business is largely headquartered in Atlanta, and progressive is largely headquartered in Utah. I'm not sure how much reverse logistics that progressive uses from the Aaron's business. I'm just trying to get a sense for how integrated those two businesses are at this time.
John Robinson -- President and Chief Executive Officer
Anthony, it's John. Thanks for the question. It's a good question. And I'll tell you, going back to the acquisition, progressive's been on such a tear for a number of years and had such a strong team led by Ryan Woodley, that we've really not integrated them as much as we could have, certainly from a back-office perspective.
There's a lot of learnings we've passed between the companies. For example, e-com at Aaron's is largely enabled by a lot of the know-how that came from progressive from a decisioning standpoint. A lot of the customer service hubs that progressive built out, a lot of the knowledge for that came from the Aaron's business. So, there's been, I would say, integration of ideas.
But from an operational perspective, the companies are largely independent. That's why we have, CEO of the progressive business, Ryan, runs very much a separate business. We try to share where we can, but we're firewalled from a lot of other perspectives, from a data sharing, that sort of perspective. There are some shared services, of course, when you think about financial reporting and some of those type of functions, but generally and largely, the businesses run separately.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. And then, just one quick follow-up, and I know you sort of touched on this before, and I know you don't want to talk specifically about large retail partners, but I guess, I was just wondering, if you could just talk about some of your more recent large retail partners, like how have those businesses ramped up just relative to your original expectations?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Anthony, Ryan here. I, we're really happy with those relationships. We've worked hard. And as you know, those aren't the relationships themselves really preexist the pilots in the business.
In both cases, they extended years prior to our first transactions occurring in those locations, so we've worked hard to build good relationships. We're happy with the results we delivered in Q4, very excited about the opportunity in 2020 and really excited about the fact that they represent multiyear growth opportunities. We're not just focused on 2020, and the team is working hard already on incremental opportunities within those for periods out into the future. So, I'd say we're happy with them.
I'm happy with the work the team has done to set us up for success there. There's a lot of collaboration that's going on, and we treat them like we do each of our other partnerships which is we just have to work hard every day to earn those relationships, and that's the good work that's happening right now.
Anthony Chukumba -- Loop Capital Markets -- Analyst
OK. That's very helpful. Thank you.
Operator
The next question will come from Jason Haas of Bank of America.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Thanks for taking my question. You'd called out higher onboarding cost than you had initially expected. Could you describe what those were?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Sure, happy to. We, as we approached Q4, we obviously knew it would be a really big growth period for us, especially with the onboarding of some of those larger opportunities, as well as growth across our existing book of business. And sort of set a big goal for preparedness for Q4, and just ended up with a good Q4 hiring season, took on a bit more labor than we had planned, invested maybe a bit more in infrastructure to make sure that we had plenty of bandwidth to support growth during that period. And I'd say the results were pretty, pretty exceptional that the service levels were extremely strong.
We got high marks from all of our partners for how we delivered smoothly throughout the holiday shopping season, so our operations and tech teams did a great job there. Now, obviously, that performance came at a slightly higher expense than we had planned. But on the margin, made the decision to err on the higher side in exceeding service levels at those high rates of growth, obviously, rather than the alternatives, so it was it was an investment in people, and I think it paid off well for us and sets us up well for 2020.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great. And then, for my follow-up, there's been some proposed changes to the regulatory environment for rent-to-own in California. I'm curious if you could comment if the proposed changes that they went through, if that would have any impact on your business.
John Robinson -- President and Chief Executive Officer
Yes, I'm not going to comment on that, in particular, at this time, but I can tell you that we've talked about it for a while, and it's been in our filings that our business is subject to regulatory scrutiny, really, given that we serve credit-challenged customers. So, and being the leader in those spaces, with Aaron's business and progressive. We're going to get even our company more attention. So, it's kind of an expectation that we have that there will be regulatory activity from time to time.
It's our job to be very compliant, follow all the rules and also to tell our story because we have a great story as an industry and as a company. We provide a great service to customers, get their families, products that they need. Whether it's a bed to sleep on, a stove to cook with or a sofa to sit on, we provide more of that to more people than anybody. So, that's just part of what we have to do as an industry and as a company, and we'll continue to work on that.
We'll continue to innovate to make it better for our customer. I'm really proud of the innovation that has gone on across all our businesses for the customer, and we'll keep working on that to make the offer even better for our customers. And if we can keep doing that, I think we'll be better positioned relative to our competition and the industry will be better positioned, so that's kind of how we think about it.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great. Thank you.
Operator
The next question will come from Vincent Caintic of Stephens.
Vincent Caintic -- Stephens Inc. -- Analyst
Hey. Thanks, good morning. First on the Aaron's business. So, there's been a lot of volatility here over the past couple of years, up and down.
And it seems like now, kind of looking into 2020, there's a lot of cleanup of, say, what happened in the third quarter of '19 on collections. I guess, maybe just taking a step back though, when you think about this business and what's kind of the right ongoing industry growth, where you think your core same-store sales should be? Where you think your core profitability margin should be? If you could kind of remind us of how you think about the business on an ongoing basis?
John Robinson -- President and Chief Executive Officer
Yes, I mean, Vince, it's a great question. We've had tremendous growth for decades in the Aaron's business without a lot of changes to the model. And I think customer preferences started changing pretty rapidly for us, five- or six-plus years ago, and so we've got to adapt to that. We think it's a big market, and that should allow us to have a growing business, but we've got to adapt the business to get back to a growth platform.
And Douglas and his team have done a really good job on that. They're kind of trying to do that while they maintain near-term profitability which is challenging. But I mean, we certainly think if we could get to this model of having a robust e-com platform, better-located, better-looking, better-experience stores for our customers, supported by our supply chain that can be a business that can sustainably grow again, but it's going to take some time and some investment, and we're just trying to do that prudently. We've been trying to do it prudently for a number of years, and it's just a balancing act that we've been trying to keep.
But honestly, if you look forward into the future, there's a lot of customers and there's to be served, and there's a unique position that we can occupy in the market with the Aaron's business to serve that, so we're optimistic it can be a sustainable grower going forward.
Vincent Caintic -- Stephens Inc. -- Analyst
OK, great. And then, on the progressive business, so two parts. When you're thinking about 2020, I'm just wondering if there's any business practice changes that you'd foresee? So maybe this FTC investigation which you won't talk about specifically, and then there's some investments in the business, but if you could talk about, say, if there's any selling or business practices changes that might happen. And then, also for revenue guidance, what are you assuming for sort of the bad debt or write-off expense forward?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks for the question. Apologies, if I'm repeating something that I've said earlier. But we're very happy with our plan for 2020. Obviously, the midpoint of the range implies accelerating growth for the business which we're all excited about.
It's a result of a lot of hard work last year setting up, onboarding new accounts, setting up our existing accounts for continued success through identifying incremental growth opportunities. We've done a good job of that. I think that's how we're able to generate accelerating rates of revenue growth. We explained a bit of the dynamic coming out of Q4 with some of the trends that don't necessarily translate directly into every quarter, but we're very excited about where we sit for 2020.
And as I mentioned, that's the trajectory that we expected to be on, so all of that is sort of factored into the outlook that we provided. And then, what? Can you -- sorry, this -- what was your second question?
Vincent Caintic -- Stephens Inc. -- Analyst
Just in terms of bad debt or write-off expense. If maybe 6 to 8% is still the right range that you're thinking about for 2020, if there's any difference there because you have a lot of new customers?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
No, no, definitely expect to be -- continue to be well within that range of 6 to 8%. Again, happy with the metrics we're seeing coming out of the lease portfolio and reiterating the guidance that we provided on that range.
Vincent Caintic -- Stephens Inc. -- Analyst
OK. And then, last quick one for me. But if you could remind us of your share buyback appetite and your aggressiveness. The stock is kind of indicating down 11% free markets.
And I just wanted your thoughts there.
John Robinson -- President and Chief Executive Officer
Yes. So, the -- obviously, share buybacks have been a major component of our return of capital to shareholders over the years. We still have over 260 million of availability on our existing buyback program. We've been active, so we aren't changing anything about the way we think about our capital allocation strategy, so my expectations there would be buybacks going forward.
Vincent Caintic -- Stephens Inc. -- Analyst
Thanks so much.
Operator
And this concludes our question and answer session. I would now like to turn the conference back over to John Robinson for any closing remarks.
John Robinson -- President and Chief Executive Officer
Thank you very much for joining us today. I'd like to thank our team members, franchisees and retail partners for all of your hard work, providing millions of families life-enriching products. Thanks to all your efforts. 2019 was another record year for the company.
Thank you again for your interest in Aaron's, and we look forward to updating you on our first quarter results on our next call.
Operator
[Operator signoff]
Duration: 64 minutes
Call participants:
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
John Robinson -- President and Chief Executive Officer
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Douglas Lindsay -- President, Aaron's Business
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Bobby Griffin -- Raymond James -- Analyst
Kyle Joseph -- Jefferies -- Analyst
John Baugh -- Stifel Financial Corp. -- Analyst
Anthony Chukumba -- Loop Capital Markets -- Analyst
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Vincent Caintic -- Stephens Inc. -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's (NYSE: AAN) Q4 2019 Earnings Call Feb 20, 2020, 8:30 a.m. Operator [Operator signoff] Duration: 64 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President, Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Bobby Griffin -- Raymond James -- Analyst Kyle Joseph -- Jefferies -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The Aaron's business same-store revenues and adjusted EBITDA increased from the prior year as a result of the improvement in collections performance throughout the quarter, expense management and gains on real estate sales.
|
Operator [Operator signoff] Duration: 64 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President, Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Bobby Griffin -- Raymond James -- Analyst Kyle Joseph -- Jefferies -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q4 2019 Earnings Call Feb 20, 2020, 8:30 a.m. Welcome to the Aaron's, Inc. fourth-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 64 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President, Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Bobby Griffin -- Raymond James -- Analyst Kyle Joseph -- Jefferies -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q4 2019 Earnings Call Feb 20, 2020, 8:30 a.m. Welcome to the Aaron's, Inc. fourth-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 64 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President, Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst Bobby Griffin -- Raymond James -- Analyst Kyle Joseph -- Jefferies -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Vincent Caintic -- Stephens Inc. -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q4 2019 Earnings Call Feb 20, 2020, 8:30 a.m. So, I had a question about the Aaron's business and progressive in terms of like how integrated are those two businesses?
|
8969.0
|
2020-02-20 00:00:00 UTC
|
RSI Alert: Aaron's (AAN) Now Oversold
|
AAN
|
https://www.nasdaq.com/articles/rsi-alert%3A-aarons-aan-now-oversold-2020-02-20
|
nan
|
nan
|
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 25.5, after changing hands as low as $46.22 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 64.1. A bullish investor could look at AAN's 25.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares:
Looking at the chart above, AAN's low point in its 52 week range is $44.79 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $44.79.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 25.5, after changing hands as low as $46.22 per share. A bullish investor could look at AAN's 25.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $44.79 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $44.79.
|
A bullish investor could look at AAN's 25.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $44.79 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $44.79. In trading on Thursday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 25.5, after changing hands as low as $46.22 per share.
|
In trading on Thursday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 25.5, after changing hands as low as $46.22 per share. A bullish investor could look at AAN's 25.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $44.79 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $44.79.
|
In trading on Thursday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 25.5, after changing hands as low as $46.22 per share. A bullish investor could look at AAN's 25.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $44.79 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $44.79.
|
8970.0
|
2020-02-20 00:00:00 UTC
|
Validea Peter Lynch Strategy Daily Upgrade Report - 2/20/2020
|
AAN
|
https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-2-20-2020-2020-02-20
|
nan
|
nan
|
The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
SOUTHWEST AIRLINES CO (LUV) is a large-cap value stock in the Airline industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest's EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest's respective policies. Southwest's Rapid Rewards frequent flyer program enables program members (Members) to earn points for every dollar spent on Southwest fares. Its Internet Website, Southwest.com, is an avenue for Southwest customers to purchase and manage travel online. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, and Cuba.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
THERMO FISHER SCIENTIFIC INC. (TMO) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. It offers its products and services through various brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific and Unity Lab Services. Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines. Analytical Instruments segment provides a broad offering of instruments, consumables, software and services that are used for a range of applications in the laboratory. Specialty Diagnostics segment offers a wide range of diagnostic test kits, reagents, culture media, instruments and associated products. Its Laboratory Products and Services segment offers products and solutions needed for the laboratory.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANCO BILBAO VIZCAYA ARGENTARIA SA (ADR) (BBVA) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments include Banking Activity in Spain, Real Estate Activity in Spain, the United States Turkey, Mexico, South America and Rest of Eurasia. Its Banking Activity in Spain segment includes Retail Network in Spain, Corporate and Business Banking (CBB), and BBVA Seguros and Asset Management units in Spain. Its Real Estate Activity in Spain segment covers specialist management of real-estate assets in the country. In the United States it offers services through, BBVA Compass Bancshares Inc. and the BBVA New York branch. The Turkey segment represents its stake in the Turkish bank, Turkiye Garanti Bankasi A.S. It offers banking and insurance businesses in Mexico. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CISCO SYSTEMS, INC. (CSCO) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cisco Systems, Inc., is engaged in designing and selling a range of technologies across networking, security, collaboration, applications and the cloud. It operates through three geographic segments: Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China. Its product and technologies includes infrastructure platforms; applications; security and other products. It also offers technical support services and advanced services. Infrastructure Platforms consists of its core networking technologies of switching, routing, data center products and wireless that are designed to work together to deliver networking capabilities and transport and store data. Application product category consists primarily of software-related offerings that utilize the core networking and data center platforms to provide their functions. Security product category primarily includes Company's unified threat management products, advanced threat security products, and web security products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANK OF MONTREAL (USA) (BMO) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Bank of Montreal (the Bank) is a financial services provider. The Bank provides a range of personal and commercial banking, wealth management and investment banking products and services. The Bank conducts its business through three operating groups: Personal and Commercial Banking (P&C), Wealth Management and BMO Capital Markets. The P&C business includes two retail and business banking operating segments, such as Canadian Personal and Commercial Banking (Canadian P&C), and the United States Personal and Commercial Banking (U.S. P&C). The Bank's Wealth Management business serves a range of client segments, from mainstream to ultra-high net worth and institutional, with an offering of wealth management products and services, including insurance. BMO Capital Markets is a North American-based financial services provider offering a range of products and services to corporate, institutional and government clients. The Bank has over 900 bank branches in Canada and the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HERMAN MILLER, INC. (MLHR) is a mid-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Herman Miller, Inc. is engaged in the research, design, manufacture, sale and distribution of office furniture systems, seating products, home furnishings and related services, among others. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ENBRIDGE INC (USA) (ENB) is a large-cap growth stock in the Natural Gas Utilities industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Enbridge Inc. is an energy infrastructure company with business platforms that include a network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation. It operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of pipelines and related terminals that transport various grades of crude oil and other liquid hydrocarbons. Gas Transmission and Midstream consists of its investments in natural gas pipelines and gathering and processing facilities, including US Gas Transmission, and Canadian Gas Transmission and Midstream. Gas Distribution consists of its natural gas utility operations. Green Power and Transmission consists of investments in renewable energy assets and transmission facilities. The Energy Services businesses undertake physical commodity marketing activity and logistical services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MCGRATH RENTCORP (MGRC) is a small-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: McGrath RentCorp is a diversified business-to-business rental company. The Company operates through four business segments: modular building and portable storage segment (Mobile Modular); electronic test equipment segment (TRS-RenTelco); a subsidiary providing containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks), and a subsidiary classroom manufacturing business selling modular buildings used primarily as classrooms in California (Enviroplex). The Mobile Modular business segment includes Mobile Modular Portable Storage division. As of December 31, 2016, the Company's TRS-RenTelco rented and sold electronic test equipment nationally and internationally from three facilities located in Grapevine, Texas (the Dallas facility), Dollard-des-Ormeaux, Canada (the Montreal facility) and Bangalore, Karnataka, India (the Bangalore facility). Adler Tanks purchases tanks and boxes from various manufacturers located throughout the country.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NAPCO SECURITY TECHNOLOGIES INC (NSSC) is a small-cap growth stock in the Security Systems & Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ROGERS CORPORATION (ROG) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Rogers Corporation manufactures and sells engineered materials and components for mission critical applications. The Company's segments are Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS), Power Electronics Solutions (PES) and Other. The ACS segment manufactures and sells circuit materials and solutions for applications in wireless communications infrastructure, automotive, connected devices, consumer electronics and aerospace/defense. The EMS segment manufactures and sells elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, construction and printing applications. The PES segment manufactures and sells ceramic substrate materials for power module applications, laminated bus bars for power inverter and interconnect applications, and micro-channel coolers. Its other business consists of elastomeric components.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CALLAWAY GOLF CO (ELY) is a small-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Callaway Golf Company designs, manufactures and sells golf clubs, golf balls, golf bags and other golf-related accessories. The Company has two segments: the golf clubs segment and golf balls segment. The golf clubs segment consists of its woods, hybrids, irons and wedges, and Odyssey putters. This segment also includes other golf-related accessories, royalties from licensing of its trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. It sells its products to retailers, directly and through its subsidiaries, and to third-party distributors. It sells pre-owned golf products through its Website, www.callawaygolfpreowned.com. In addition, it sells Callaway Golf and Odyssey products, including Toulon Design by Odyssey, directly to consumers through its Websites, www.callawaygolf.com and www.odysseygolf.com.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CNA FINANCIAL CORP (CNA) is a large-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CNA Financial Corporation is an insurance holding company. The Company's segments include Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core. Its Specialty segment provides a range of professional, financial, and specialty property, and casualty products and services. The Commercial segment includes property and casualty insurance products and services to small, middle-market and large businesses. Its International segment provides management and professional liability coverages, as well as a range of other property and casualty insurance products and services. The Life & Group Non-Core segment primarily includes the results of its individual and group long term care businesses that are in run-off. Its Corporate & Other Non-Core segment primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COOPER COMPANIES INC (COO) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Cooper Companies, Inc. is a global medical device company. The Company operates through two business units: CooperVision, Inc. and CooperSurgical, Inc. CooperVision offers soft contact lenses for the vision correction market. CooperVision develops, manufactures and markets a range of single-use, two-week and monthly contact lenses. CooperVision services three primary regions: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. CooperVision offers spherical, aspherical, toric, multifocal and toric multifocal lens products in various modalities. CooperVision's products are primarily manufactured at its facilities located in the United Kingdom, Puerto Rico, Hungary, Costa Rica and New York. CooperSurgical offers an array of products and services focused on advancing the health of families through a portfolio of products and services focusing on women's health, fertility and diagnostics.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GLAXOSMITHKLINE PLC (ADR) (GSK) is a large-cap growth stock in the Major Drugs industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: GlaxoSmithKline PLC is a global healthcare company. The Company operates through two segments: Pharmaceuticals and Vaccines. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company makes a range of prescription medicines and vaccines products. The Pharmaceuticals business discovers, develops and commercializes medicines to treat a range of acute and chronic diseases. The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. It has a portfolio of medicines in respiratory and HIV. Its Pharmaceuticals business includes Respiratory, HIV, Specialty products, and Classic and Established products. Its Vaccines business has a portfolio of over 40 pediatric, adolescent, adult, older people and travel vaccines.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HELEN OF TROY LIMITED (HELE) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Helen Of Troy Limited is a global consumer products company that offers a range of solutions for its customers through a range of brands. The Company is a global designer, developer, importer, marketer and distributor of a portfolio of brand-name consumer products. The Company has three segments. The Housewares segment provides a range of consumer products for the home. The Health & Home segment focuses on healthcare devices, such as thermometers, humidifiers, blood pressure monitors and heating pads; water filtration systems, and small home appliances, such as portable heaters, fans, air purifiers, and insect control devices. The Beauty segment's products include electric hair care, beauty care and wellness appliances; grooming tools and accessories, and liquid-, solid- and powder-based personal care and grooming products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FUNKO INC (FNKO) is a small-cap value stock in the Recreational Products industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Funko, Inc. is a pop culture consumer products company. The Company is engaged in selling a broad range of pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products combine its proprietary brands and designs into properties it licenses from content providers. Its product categories include figures, plush, accessories and other. It also offers different types of bags and wallets. It offers its products under various brands, including Pop!, Mystery Minis, Dorbz, Pint Size Heroes, Rock Candy, Galactic or Hero Plushies, SuperCute, MyMoji and Loungefly. The Company has licensed properties into four categories: classic evergreen, movie release, current TV and current video game.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MAGNOLIA OIL & GAS CORP (MGY) is a mid-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Magnolia Oil & Gas Corp, formerly TPG Pace Energy Holdings Corp, is an oil and gas exploration and production company. The Company owns assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The Company operates in Karnes County and Giddings Field. It operates 14, 070 net acres in Karnes County and approximately 3,60,000 net acres in Giddings Field.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WILLIS TOWERS WATSON PLC (WLTW) is a large-cap growth stock in the Insurance (Miscellaneous) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Willis Towers Watson Public Limited Company (Willis Towers Watson) is a holding company. The Company operates as a global advisory, broking and solutions company. It is engaged in offering risk management, insurance broking, consulting, technology and solutions, and private exchanges. The Company operates through eight segments: Willis International; Willis North America; Willis Capital, Wholesale & Reinsurance (CWR); Willis GB; Towers Watson Benefits; Towers Watson Exchange Solutions; Towers Watson Risk and Financial Services; and Towers Watson Talent and Rewards. The Willis GB segment comprises four business units: Property and Casualty, Transport, Financial Lines and Retail Networks. The Willis Capital Wholesale and Reinsurance segment includes Willis Re; Willis Capital Markets & Advisory; Willis' wholesale business, and Willis Portfolio Underwriting Services. The Willis North America segment provides risk management, insurance brokerage and related risk services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FS KKR CAPITAL CORP (FSK) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FS KKR Capital Corp, formerly FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Aaron's, Inc. (Aaron's) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron's stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SARATOGA INVESTMENT CORP (SAR) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Saratoga Investment Corp. is a specialty finance company. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in leveraged loans and mezzanine debt issued by private middle-market companies in the United States. Its investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments. It purchases mezzanine debt and makes equity investments in middle market companies. It may invest in other investments, such as investments in distressed debt, including securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles, such as collateralized loan obligation funds. Its leveraged loan portfolio consists primarily of first lien and second lien term loans. The Company's investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
KNOWLES CORP (KN) is a small-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Knowles Corporation is a global supplier of micro-acoustic, audio processing and specialty component solutions, serving the mobile consumer electronics, communications, medical, military, aerospace and industrial markets. The Company operates through two segments: Mobile Consumer Electronics (MCE) and Specialty Components (SC). MCE designs and manufactures acoustic products, including microphones and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices. SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as solutions and components used in communications infrastructure and a range of other markets. It has sales, support and engineering facilities in North America, Europe and Asia, and manufacturing facilities in Asia. It also offers acoustics components used in hearing aids, as well as high-end oscillators (timing devices) and capacitors.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MICHAELS COMPANIES INC (MIK) is a small-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch changed from 59% to 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company's segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan's and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan's stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company's stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
VERITEX HOLDINGS INC (VBTX) is a small-cap growth stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier's checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
STORE CAPITAL CORP (STOR) is a mid-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company's portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NEWTEK BUSINESS SERVICES CORP (NEWT) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company's investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls. The Company is a national non-bank lender that provides, together with its controlled portfolio companies, a range of business services and financial products under the Newtek brand to the small and medium-sized business (SMB) market. The Company issues debt and makes equity investments in portfolio companies in various industries. Its products and services include Business Lending including the United States Small Business Administration (SBA) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Data Backup, and Payroll and Benefits Solutions to SMB accounts across all industries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WALGREENS BOOTS ALLIANCE INC (WBA) is a large-cap value stock in the Retail (Drugs) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Walgreens Boots Alliance, Inc., is a holding company. The Company is a pharmacy-led health and wellbeing company. The Company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Retail Pharmacy USA segment consists of the Walgreen Co. (Walgreens) business, which includes the operation of retail drugstores, care clinics and providing specialty pharmacy services. The Retail Pharmacy International segment consists primarily of the Alliance Boots pharmacy-led health and beauty stores, optical practices and related contract manufacturing operations. The Pharmaceutical Wholesale segment consists of the Alliance Boots pharmaceutical wholesaling and distribution businesses. The Company's portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty product brands, including No7, Botanics, Liz Earle and Soap & Glory.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GREAT AJAX CORP (AJX) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Great Ajax Corp. is an externally managed real estate company. The Company is focused on acquiring, investing in and managing a portfolio of re-performing and non-performing mortgage loans secured by single-family residences and single-family properties. Its segment is focused on non-performing mortgages and re-performing mortgages. It also invests in loans secured by multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. It also holds real estate-owned properties (REO) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. It is managed by Thetis Asset Management LLC, an affiliated entity. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NEXTGEN HEALTHCARE INC (NXGN) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: NextGen Healthcare, Inc., formerly Quality Systems, Inc., provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company's clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ARCOSA INC (ACA) is a mid-cap growth stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcosa, Inc. is focused on manufacturing and producing infrastructure-related products and services. The Company provides its products to a spectrum of markets throughout construction, energy, and transportation. The Company operates through three segments: Construction Products Group, Energy Equipment Group, and Transportation Products Group. The Construction Products Group segment produces and sells construction aggregates and manufactures and sells trench shields and shoring products and services for infrastructure-related projects. The Energy Equipment Group segment manufactures and sells products for energy-related businesses, including structural wind towers, steel utility structures for electricity transmission and distribution, and storage and distribution containers. The Transportation Products Group segment manufactures and sells products for the inland waterway and rail transportation industries including barges, barge-related products, axles, and couplers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CIGNA CORP (CI) is a large-cap growth stock in the Insurance (Accident & Health) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cigna Corporation is a health services company. The Company offers medical, dental, disability, life and accident insurance and related products and services. The Company's segments include Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations and Corporate. Its Global Health Care segment aggregates the commercial and Government operating segments. Its commercial operating segment encompasses the United States commercial and certain international healthcare businesses serving employers and their employees, other groups, and individuals. Its Global Supplemental Benefits segment offers supplemental health, life and accident insurance products in selected international markets and in the United States. Its Group Disability and Life segment provides group long-term and short-term disability insurance, group life insurance, accident and specialty insurance and related services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WATFORD HOLDINGS LTD (WTRE) is a small-cap value stock in the Insurance (Life) industry. The rating according to our strategy based on Peter Lynch changed from 72% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Watford Holdings Ltd is a holding company. The Company, through its subsidiaries, is a global property and casualty (P&C), insurance and reinsurance company. Its four lines of business includes casualty reinsurance, other specialty reinsurance, property catastrophe reinsurance and insurance programs and coinsurance. It has operations across Bermuda, the United States and Europe. Its main operating subsidiary is Watford Re Ltd. (Watford Re), which is focused on writing business. Watford Re also writes mortgage insurance and reinsurance. In the United States, the Company is authorized to write commercial P&C lines of business through its Watford Insurance Company (WIC) and Watford Specialty Insurance Company (WSIC) subsidiaries. In Europe, it writes direct insurance and coinsurance business, primarily in personal P&C lines, through insurers and program managers that develop and distribute specialized insurance products for its WICE subsidiary.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
LEVI STRAUSS & CO. (LEVI) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Levi Strauss & Co. is an apparel company. The Company designs, markets and sells its products under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands directly or through third parties and licensees. Its products include jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories for men, women and children across the world. The Company's trademarks include Arcuate Stitching Design, the Tab Device, 501, the Two Horse Design, the Housemark and the Wings and Anchor Design. The Company operates in three geographic segments: the Americas, Europe and Asia. The Company's products are sold in more than 110 countries. The Company licenses its Levi's and Dockers trademarks for a range of product categories in markets in each of its regions, including footwear, belts, wallets and bags, outerwear, sweaters, dress shirts, kidswear, sleepwear and hosiery.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
STERIS PLC (STE) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Steris plc, formerly Steris Ltd, is a provider of infection prevention and other procedural products and services. The Company offers a mix of capital equipment products, such as sterilizers and washers, surgical tables, lights and equipment management systems and connectivity solutions, such as operating room integration; consumable products, such as detergents and gastrointestinal endoscopy accessories and other products; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair solutions, laboratory services and outsourced reprocessing. The Company operates through four reportable business segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. It's Corporate and other segment includes the Defense and Industrial business unit. The Company serves the customers in the United Kingdom, the United States and many other countries throughout the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GREIF, INC. (GEF) is a mid-cap value stock in the Containers & Packaging industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Greif, Inc. is a producer of industrial packaging products and services. The Company's segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AMERIS BANCORP (ABCB) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ameris Bancorp is a financial holding company. The Company's business is conducted through its banking subsidiary, Ameris Bank (the Bank), which provides a range of banking services to its retail and commercial customers. The Company operates through four segments: the Banking Division, the Retail Mortgage Division, the Warehouse Lending Division and the SBA Division. The Banking Division is engaged in the delivery of financial services, which include commercial loans, consumer loans and deposit accounts. The Retail Mortgage Division is engaged in the origination, sales and servicing of one- to four-family residential mortgage loans. The Warehouse Lending Division is engaged in the origination and servicing of warehouse lines to other businesses that are secured by underlying one- to four-family residential mortgage loans. The SBA Division is engaged in the origination, sales and servicing of small business administration (SBA) loans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WNS (HOLDINGS) LIMITED (ADR) (WNS) is a mid-cap growth stock in the Computer Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: WNS (Holdings) Limited is a global provider of business process management (BPM) services. The Company offers data, voice, analytical and business transformation services. The Company's segments include WNS Global BPM and WNS Auto Claims BPM. Its operating segments include travel, insurance, banking and financial services, healthcare, utilities, retail and consumer products groups, auto claims and others. The WNS Global BPM includes the Company's business activities with the exception of WNS Auto Claims BPM. WNS Auto Claims BPM is the Company's automobile claims management business. The Company focuses on various industry verticals, such as insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods (CPG), media and entertainment, and telecommunication (telecom); utilities; consulting and professional services; banking and financial services; healthcare, and shipping and logistics.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HAYNES INTERNATIONAL, INC. (HAYN) is a small-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AVIS BUDGET GROUP INC. (CAR) is a mid-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 78% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are rental car suppliers. It also owns Payless, which is a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France. The Company operates in two segments: Americas and International. The Americas segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in North America, South America, Central America and the Caribbean, and operates its car sharing business in certain of these markets. The International segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: BONUS PASS
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FUJIFILM HOLDINGS CORP. (ADR) (FUJIY) is a large-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FUJIFILM Holdings Corporation is a Japan-based holding company engaged in the business related to photography, medical care & printing & liquid crystal display materials and copying machines. The Company operates in three business segments. Imaging Solutions segment develops, manufactures and sells color films, digital cameras, color paper services for photographic prints, instant printing equipment and optical devices mainly for general consumers. Healthcare & Materials Solutions segment provides medical system equipment, cosmetics and supplements, pharmaceutical products, biopharmaceutical manufacturing development contract, regenerative medicine products, chemical products, graphic system equipment, inkjet equipment, display materials, recording media and electronic materials for commercial use. Document Solutions segment provides digital multi-functional peripherals, publishing systems, document management software and related solution services mainly for commercial use.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
LOGITECH INTERNATIONAL SA (USA) (LOGI) is a mid-cap growth stock in the Computer Peripherals industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Logitech International S.A. is a holding company. The Company designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company operates through peripheral segment. The Company offers its products to a network of domestic and international customers, including direct sales to retailers, e-tailers, and indirect sales through distributors. The Company's retail network across the world includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants. Its music solutions are focused primarily on mobile speakers, including its UE BOOM family of mobile wireless speakers, its Jaybird wireless audio wearables for sports and active lifestyles, and its custom in-ear headphones. It offers a range of gaming gear for gamers, including mice, keyboards, headsets, gamepads and steering wheels.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MELLANOX TECHNOLOGIES, LTD. (MLNX) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Mellanox Technologies, Ltd. is a fabless semiconductor company. The Company is an integrated supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards. The Company operates in the development, manufacturing, marketing and sales of interconnect products segment. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration. The products it offers include integrated circuits (ICs), adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories. Together these products form a networking solution, focused on computing, storage and communication applications used in multiple markets, including high-performance computing (HPC), cloud, Web 2.0, storage, financial services, and enterprise data center (EDC).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
RADIANT LOGISTICS INC (RLGT) is a small-cap growth stock in the Misc. Transportation industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Radiant Logistics, Inc. operates as a third-party logistics company, providing multi-modal transportation and logistics services. The Company is organized in two geographic operating segments: United States and Canada. Its transportation services for both the United States and Canada segments are placed into categories of freight forwarding and freight brokerage services. The Company services an account base consisting of consumer goods, food and beverage, manufacturing and retail customers, which the Company supports from a network of operating locations, as well as an integrated international service partner network. As of June 30, 2016, it provided these services through a multi-brand network, including 18 Company-owned offices. As of June 30, 2016, it had approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in its carrier network. Its brands include Radiant, Wheels, Airgroup, Adcom, DBA and Service By Air.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: FAIL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
PACWEST BANCORP (PACW) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: PacWest Bancorp is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. As of October 23, 2017, the Bank offered a range of loan and deposit products and services through 83 branches located throughout the state of California, one branch located in Durham, North Carolina, and several loan production offices located in cities across the country. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services through its CapitalSource and Square 1 Bank divisions. In addition, the Company provides investment advisory and asset management services to select clients through Square 1 Asset Management, Inc., a subsidiary of the Bank.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GRAND CANYON EDUCATION INC (LOPE) is a mid-cap growth stock in the Schools industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
VIRTUS INVESTMENT PARTNERS INC (VRTS) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Virtus Investment Partners, Inc. (Virtus) is a provider of investment management and related services to individuals and institutions. The Company provides its products in various forms and through multiple distribution channels. Its retail products include open-end mutual funds, closed-end funds, exchange traded funds, variable insurance funds, undertakings for collective investments in transferable securities (UCITS) and separately managed accounts. Its open-end mutual funds are distributed through intermediaries. Its closed-end funds trade on the New York Stock Exchange. Its variable insurance funds are available as investment options in variable annuities and life insurance products distributed by life insurance companies. Separately managed accounts consists of intermediary programs, sponsored and distributed by unaffiliated brokerage firms, and private client accounts, which are offered to the high net-worth clients of its affiliated managers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MVB FINANCIAL CORP (MVBF) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MVB Financial Corp. (MVB) is a financial holding company. Through its subsidiaries, MVB Bank, Inc. (the Bank), MVB Mortgage and MVB Insurance, LLC, the Company provides community banking, mortgage banking, insurance and wealth management services to individuals and corporate clients in the Mid-Atlantic region. It operates through four segments: commercial and retail banking, mortgage banking, financial holding company, and insurance services. The Bank offers its customers a range of products, such as checking accounts, negotiable order of withdrawal (NOW) accounts, money market and savings accounts, time certificates of deposit, commercial, installment, commercial real estate and residential real estate mortgage loans, debit cards, and safe deposit rental facilities. The Bank provides services through its walk-in offices, automated teller machines (ATMs), drive-in facilities, and Internet and telephone banking. The Bank also offers non-deposit investment products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HYATT HOTELS CORPORATION (H) is a mid-cap growth stock in the Hotels & Motels industry. The rating according to our strategy based on Peter Lynch changed from 74% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FABRINET (FN) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company's customer base includes companies in industries that require precision manufacturing capabilities, such as optical communications, industrial lasers, automotive, medical and sensors. Its customers in these industries support end-markets, including automotive, biotechnology, communications, materials processing, medical devices, metrology and semiconductor processing.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GOLDMAN SACHS GROUP INC (GS) is a large-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 63% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Goldman Sachs Group, Inc. is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services. As of December 2016, it had offices in over 30 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) is a mid-cap value stock in the Advertising industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: White Mountains Insurance Group, Ltd. is a holding company. The Company's principal businesses are conducted through its insurance subsidiaries and other affiliates. Its segments include HG Global/BAM and Other Operations. The HG Global/BAM segment consists of the operations of HG Global Ltd. (HG Global) and Build America Mutual Assurance Company (BAM). The Other Operations segment consists of the Company and its intermediate holding companies, its investment management subsidiary, White Mountains Advisors LLC, and certain consolidated and unconsolidated private capital investments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ROYAL BANK OF CANADA (RY) is a large-cap value stock in the S&Ls/Savings Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Royal Bank of Canada is a diversified financial services company. The Company provides personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. The Company serves personal, business, public sector and institutional clients in Canada, the United States and approximately 34 other countries. The Company's business segments include Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets, and Corporate Support. The Company, through its segments, serves various lines of businesses, which include Personal Financial Services, Business Financial Services, Cards and Payment Solutions, Caribbean and United States Banking, Canadian Wealth Management, United States and International Wealth Management, Global Asset Management, Canadian Insurance, International Insurance, Corporate and Investment Banking, Global Markets and Other.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FIRSTENERGY CORP. (FE) is a large-cap growth stock in the Electric Utilities industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: FirstEnergy Corp. is a holding company. The Company is engaged in holding, directly or indirectly, all of the outstanding equity of its principal subsidiaries. Its segments include Regulated Distribution, Regulated Transmission, Competitive Energy Services (CES) and Corporate/Other. As of December 31, 2016, the Regulated Distribution segment distributed electricity through the Company's 10 utility operating companies, serving approximately six million customers, and purchased power for its provider of last resort (POLR), standard offer service (SOS), standard offer service (SSO) and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by American Transmission Systems, Incorporated (ATSI) and Trans-Allegheny Interstate Line Company (TrAIL). The CES segment primarily supplies electricity to end use customers through retail and wholesale arrangements.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
OSI SYSTEMS, INC. (OSIS) is a small-cap growth stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BANK OF NOVA SCOTIA (BNS) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Bank of Nova Scotia is an international bank and a financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. The Bank offers a range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GERDAU SA (ADR) (GGB) is a mid-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gerdau S.A. (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. Its segments are Brazil Operations, which includes operations of steel and iron ore in Brazil, except Special Steels, and the operation of metallurgical coal and coke in Colombia; North America Operations, which includes all operations in North America, except those of Mexico and Special Steels; South America Operations, which includes operations in South America, except Brazil and the operation of metallurgical coal and coke in Colombia, and Special Steel Operations, including special steel operations in Brazil, Spain, the United States and India. It supplies its customers a range of products, including iron ore semi-finished products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SMITH & NEPHEW PLC (ADR) (SNN) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SUN LIFE FINANCIAL INC (SLF) is a large-cap value stock in the Insurance (Life) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. The Company is a financial services company providing a range of insurance, wealth and asset management solutions to individuals and corporate Clients. It operates through five segments. The Sun Life Financial Canada segment provides retail insurance andinvestment advice products and services to people across Canada. The SLF U.S. segment has three business units: Group Benefits, International and In-force Management. Its Sun Life Financial Asset Management segment consists of MFS Investment Management and Sun Life Investment Management. The SLF Asia segment operates through subsidiaries in the Philippines, Hong Kong, Indonesia and Vietnam, as well as through joint ventures and associates with local partners in the Philippines, India, China and Malaysia. Its Corporate segment includes SLF U.K. and Corporate Support. Corporate Support operations consist of its Run-off reinsurance business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
POSCO (ADR) (PKX) is a large-cap growth stock in the Iron & Steel industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
DENNY'S CORP (DENN) is a small-cap value stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 56% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Denny's Corporation (Denny's), incorporated on September 29, 1988, operates a franchised full-service restaurant chain. The Company, through its subsidiary, Denny's, Inc., owns and operates the Denny's brand. Denny's brand consists of approximately 1,706 restaurants, which includes franchised/licensed restaurants and company operated. In addition to its breakfast-all-day items, Denny's offers a selection of lunch and dinner items including burgers, sandwiches, salads and skillet entres. It also offers assortment of beverages, appetizers and desserts. It also offers items for children and seniors. The Company's purchasing department administers programs enables procurement of food and non-food products. Its franchisees also purchase food and non-food products directly from its vendors under these programs. The Company's restaurants are operated in the District of Columbia, United States territories, California, Texas, and Florida.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Peter Lynch has returned 420.89% vs. 240.63% for the S&P 500. For more details on this strategy, click here
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, and Cuba. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The Company's segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors. The Company, through its segments, serves various lines of businesses, which include Personal Financial Services, Business Financial Services, Cards and Payment Solutions, Caribbean and United States Banking, Canadian Wealth Management, United States and International Wealth Management, Global Asset Management, Canadian Insurance, International Insurance, Corporate and Investment Banking, Global Markets and Other.
|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here AARON'S, INC. (AAN) is a mid-cap growth stock in the Rental & Leasing industry. The Company has three segments. The Company operates in three business segments.
|
8971.0
|
2020-02-19 00:00:00 UTC
|
Notable Wednesday Option Activity: AAN, RAMP, QCOM
|
AAN
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aan-ramp-qcom-2020-02-19
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Aaron's Inc (Symbol: AAN), where a total of 4,779 contracts have traded so far, representing approximately 477,900 underlying shares. That amounts to about 63.9% of AAN's average daily trading volume over the past month of 747,475 shares. Particularly high volume was seen for the $65 strike call option expiring March 20, 2020, with 1,521 contracts trading so far today, representing approximately 152,100 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange:
LiveRamp Holdings Inc (Symbol: RAMP) options are showing a volume of 4,566 contracts thus far today. That number of contracts represents approximately 456,600 underlying shares, working out to a sizeable 63% of RAMP's average daily trading volume over the past month, of 724,795 shares. Especially high volume was seen for the $35 strike put option expiring June 19, 2020, with 1,955 contracts trading so far today, representing approximately 195,500 underlying shares of RAMP. Below is a chart showing RAMP's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Qualcomm Inc (Symbol: QCOM) options are showing a volume of 61,793 contracts thus far today. That number of contracts represents approximately 6.2 million underlying shares, working out to a sizeable 63% of QCOM's average daily trading volume over the past month, of 9.8 million shares. Particularly high volume was seen for the $90 strike call option expiring February 21, 2020, with 6,546 contracts trading so far today, representing approximately 654,600 underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $90 strike highlighted in orange:
For the various different available expirations for AAN options, RAMP options, or QCOM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Particularly high volume was seen for the $65 strike call option expiring March 20, 2020, with 1,521 contracts trading so far today, representing approximately 152,100 underlying shares of AAN. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Aaron's Inc (Symbol: AAN), where a total of 4,779 contracts have traded so far, representing approximately 477,900 underlying shares. That amounts to about 63.9% of AAN's average daily trading volume over the past month of 747,475 shares.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange: LiveRamp Holdings Inc (Symbol: RAMP) options are showing a volume of 4,566 contracts thus far today. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Aaron's Inc (Symbol: AAN), where a total of 4,779 contracts have traded so far, representing approximately 477,900 underlying shares. That amounts to about 63.9% of AAN's average daily trading volume over the past month of 747,475 shares.
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Aaron's Inc (Symbol: AAN), where a total of 4,779 contracts have traded so far, representing approximately 477,900 underlying shares. Particularly high volume was seen for the $65 strike call option expiring March 20, 2020, with 1,521 contracts trading so far today, representing approximately 152,100 underlying shares of AAN. Below is a chart showing QCOM's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for AAN options, RAMP options, or QCOM options, visit StockOptionsChannel.com.
|
Particularly high volume was seen for the $65 strike call option expiring March 20, 2020, with 1,521 contracts trading so far today, representing approximately 152,100 underlying shares of AAN. Below is a chart showing QCOM's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for AAN options, RAMP options, or QCOM options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Aaron's Inc (Symbol: AAN), where a total of 4,779 contracts have traded so far, representing approximately 477,900 underlying shares.
|
8972.0
|
2020-02-07 00:00:00 UTC
|
15 Mid-Cap Stocks to Buy for Mighty Returns
|
AAN
|
https://www.nasdaq.com/articles/15-mid-cap-stocks-to-buy-for-mighty-returns-2020-02-07
|
nan
|
nan
|
Mid-cap stocks aren't exactly spotlight hogs.
Many investors buy into large companies because they tends to be more stable, plus information and media coverage are more readily available. Investors also know to buy small-cap stocks if they want to make aggressive growth investments to boost their long-term returns. But mid-caps - typically, stocks between $2 billion and $10 billion in market value - tend to get lost in the mix.
That's unfortunate, because over the long haul, they tend to outperform their larger and smaller brethren.
Between 2015 and 2019, the S&P 500 outperformed both the S&P MidCap 400 and the S&P SmallCap 600 on a total-return basis (price plus dividends). In the 10 years from 2010 and 2019, small caps flipped the script, outperforming the large- and mid-cap indices. But across the entire span, from 2005 to 2019, the MidCap 400 delivered a total return of 293% - 14 percentage points higher than the SmallCap 600, and 33 percentage points better than the S&P 500. Experts point out that outperformance looks even better once you adjust for risk.
"Large-cap stocks offer the stability that comes with mature multinational businesses with diverse revenue sources," Matthew Bartolini, head of SPDR Americas Research, writes in a 2019 note to clients. "Small-cap stocks are unproven, but they offer potential for further expansion and market penetration. And midcaps offer a unique combination of the managerial maturity associated with large caps and the operational dexterity of small caps."
With this in mind, here are 15 of the best mid-cap stocks to buy to give you upside growth potential in stronger economies, along with some downside protection when the market environment looks weaker.
SEE ALSO: The 20 Best Stocks to Buy for 2020
Yeti Holdings
Market value: $3.2 billion
Dividend yield: N/A
Analysts' opinion: 10 Strong Buy, 2 Buy, 2 Hold, 0 Sell, 0 Strong Sell
Yeti Holdings (YETI, $36.59) makes premium coolers, bottles and other outdoor products. It's coming off a strong 2019 in which its stock gained a whopping 134%, and it appears ready to take its place among the best mid-cap stocks in 2020.
Yeti delivered better-than-expected third-quarter results at the end of October. Sales increased by 17% year-over-year to $229.1 million, and adjusted earnings popped 29% to $26.1 million, or 30 cents per share; both figures topped analyst expectations. For the full year, Yeti is expecting sales growth of at least 14.5% and earnings growth of 23% to 26%. Looking out to 2020, analysts predict revenues and profits will improve by 13% and 20%, respectively. All of these are promising figures.
In January, KeyBanc Capital Markets analyst Brett Andress conducted store checks at eight Lowe's (LOW) locations in Florida to ascertain how well Yeti's partnership with the home improvement retailer was doing. He wrote that Yeti's products were receiving excellent product placement in high-traffic areas, and that each location was stocking approximately $36,000 in products. Andress suggests that if Yeti sold at all Lowe's stores, the company could gain an additional $30 million in annual revenues and 10 cents per share in profits by 2021.
Another info trove - credit card data - indicates that Yeti's online sales in the important month of December grew by more than 100% over 2018. That has Andress suggesting a 62% jump in revenues for Yeti's fourth quarter.
YETI shares trade at 26 times analysts' estimates for next year's earnings and 3.6 times trailing 12-month sales. That's hardly cheap, but it seems reasonable considering Yeti's strong growth prospects and analysts' continued bullishness on the name.
SEE ALSO: 64 Dividend Stocks You Can Count On in 2020
Freshpet
Market value: $2.4 billion
Dividend yield: N/A
Analysts' opinion: 5 Strong Buy, 1 Buy, 5 Hold, 0 Sell, 0 Strong Sell
Conservative investors might be tempted to lay off New Jersey-based Freshpet (FRPT, $66.65) in 2020.
Don't. While the manufacturer of natural pet food is up 344% since its initial public offering in November 2014, it has only just begun its pathway to profitability and is among several encouraging stories in the budding pet stocks space.
Freshpet is projecting 26% revenue growth to $244 million for its fiscal 2019, as well as a 43% jump in adjusted EBITDA (earnings before interest, taxes, deductions and amortization - a popular measure of operational profitability that backs out various accounting deductions) to $29 million. When the company went public five years ago, it had annual sales of just $63 million and an adjusted EBITDA loss of $192,000.
In its Q3 2019 report, Freshpet said that it converted three out of four manufacturing facilities from five-day production to seven-day. In the first quarter of 2020, it plans to convert its fourth facility to seven-day production. FRPT also is adding 90,000 square feet to its Lehigh Valley plant in Pennsylvania.
"With this rapid growth that we have, that capacity will get us about $540 million in net sales," CEO Billy Cyr told those in attendance at January's 2020 ICR Conference in Orlando. "We're already envisioning the next increment in capacity that will provide us the opportunity to get up to $1 billion in sales and that will require new capacity to come online in 2022."
Translation: FRPT is among the best mid-cap stocks to buy for a somewhat longer time horizon, as the next three to five years should see this growth in capacity flowing back to shareholders.
SEE ALSO: 13 Super Small-Cap Stocks to Buy for 2020 and Beyond
Aaron's
Market value: $3.8 billion
Dividend yield: 0.3%
Analysts' opinion: 9 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell
It's hard to fathom a company such as Aaron's (AAN, $56.93), which made a name for itself hawking consumer goods on a lease-to-own basis, would do well in a strong economy. However, because it focuses on consumers with a FICO score between 500 and 700, which represents approximately 40% of the U.S. population, Aaron's is able to find customers in good times and bad.
Aaron's, which boasts 1,163 company-owned and 341 franchised store locations, estimates that the entire U.S. lease-to-own market is worth $25 billion to $35 billion annually, providing the company with a large, addressable market. Furthermore, 78% of Americans are said to live paycheck to paycheck, which suggests the need is high.
Stephens financial analyst Vincent Caintic has Aaron's among the best mid-caps to buy right now, recently naming AAN as one of the independent financial services firm's "top picks" for 2020.
Although Aaron's fleet of traditional brick-and-mortar stores has been its primary growth vehicle, things changed in April 2014 when it acquired Progressive Finance Holdings for $700 million. Progressive provides lease-to-own financing to other traditional retailers, which Aaron's calls virtual rent-to-own.
"In contrast with slowing consumer demand for financing (as we've seen with credit cards and auto lending), virtual rent-to-own should do well in 2020, primarily because the industry is still in its nascent growth stage. Customers who have not had point-of-sale financing opportunities in the past will now increasingly have the option due to the Aaron's offering," Caintic wrote in a January note to clients. He has an Overweight rating (equivalent of Buy) with a 12-month target price of $80 per share, indicating 40% upside from current prices.
SEE ALSO: 30 Massive Dividend Increases From the Past Year
Five Below
Market value: $6.5 billion
Dividend yield: N/A
Analysts' opinion: 16 Strong Buy, 1 Buy, 4 Hold, 1 Sell, 0 Strong Sell
Five Below (FIVE, $116.11) is a growing discount store that caters to teens and tweens, but also has a large following from adults who simply like the fact most of the retailer's products are sold at $5 or less.
Although Five Below had a choppy year in 2019, it still managed to generate a 25% total return for shareholders. Unfortunately, its stock tumbled more than 11% on Jan. 13 after providing holiday-season sales and updated fourth-quarter guidance figures that weren't as robust as investors were expecting.
"While our comparable sales during key holiday selling periods were positive, they were not strong enough to overcome the headwind of six fewer shopping days between Thanksgiving and Christmas, and overall sales did not meet our expectations," CEO Joel Anderson said in the company's press release.
Five Below isn't the only retailer to suffer an unexpected setback in the holiday shopping season between Thanksgiving and Christmas. Target (TGT), for instance, dropped on Jan. 15 after reporting that its same-store sales in November and December grew by just 1.4%, below the company's expectations.
These things happen, and Wall Street knows it.
Since Five Below's holiday-season report, 12 of 13 analysts have sounded off with Buy recommendations, albeit a couple of those lowered their price targets on the stock. However, Credit Suisse analyst Judah Frommer responded by upgrading FIVE from Neutral (equivalent of Hold) to Outperform (equivalent of Buy) with a $125 price target. He believes given that Five Below's same-store sales on Black Friday, CyberWeek and the last seven days of the holiday shopping season were all positive, the worst is behind it.
Future catalysts include thawing U.S.-China trade relations and the remodels of more than 60 locations. Furthermore, Five Below continues to open "Ten Below" sections - stores-within-a-store selling merchandise up to $10 - in new and remodeled locations. Investors should continue to buy this mid-cap stock on any major dips in its price.
SEE ALSO: The 13 Hottest IPOs to Watch For in 2020
Scotts Miracle-Gro
Market value: $6.8 billion
Dividend yield: 1.9%
Analysts' opinion: 4 Strong Buy, 0 Buy, 4 Hold, 0 Sell, 0 Strong Sell
If your house has a big patch of grass, you're likely familiar with Ohio-based Scotts Miracle-Gro (SMG, $123.06), whose consumer lawn and garden products are used by millions of Americans to keep their lawns healthy and green.
Scotts isn't a highflier, but rather a company with a modest goal of delivering annual growth of 2% to 4% in sales, 4% to 6% in operating profits and 8% to 10% in per-share earnings growth, ultimately leading to shareholder returns of 10-12% annually.
Core brands such as Scotts, Miracle-Gro and Ortho deliver stable cash flow. However, it is the company's Hawthorne Gardening Company subsidiary, which it created in October 2014, that has driven Scotts' revenue growth in the five years since.
In April 2018, Scotts announced the acquisition of Sunlight Supply - the largest hydroponic distributor in the U.S. - for $450 million. It combined Sunlight with Hawthorne, whose target market is professional growers, including cannabis producers. Scotts said that the combined entity would record annual sales of $600 million and sell to more than 1,800 hydroponic retail stores in North America. Indeed, Hawthorne's 2019 revenues rocketed by 95% to $671.2 million. Excluding the sales from its Sunlight acquisition, sales still grew by 24%, which was three times the revenue growth of its U.S. consumer business. In 2020, SMG expects Hawthorne to grow its sales another 12% to 15%, compared to 1% to 3% for its U.S. consumer division.
"The momentum in Hawthorne has been building all year, and we saw our highest levels of organic growth in the fourth quarter, giving us a high degree of confidence as we look ahead into fiscal 2020," CEO Jim Hagedorn said in the company's Q4 2019 earnings release.
As the cannabis industry continues to mature, Scotts' stock will remain an important holding of most, if not all, cannabis ETFs.
SEE ALSO: 11 S&P 500 Stocks That Could Soar 20% or More in 2020
Cannae Holdings
Market value: $3.2 billion
Dividend yield: N/A
Analysts' opinion: 1 Strong Buy, 0 Buy, 0 Hold, 0 Sell, 0 Strong Sell
Over the past year, Cannae Holdings (CNNE, $40.31) has generated a return of 93% for shareholders over the past year. But ... what exactly is it?
Cannae, a Las Vegas-based mid-cap holding company, is the new identity of former Fidelity National Financial (FNF) investment subsidiary Fidelity National Financial Ventures. The company broke away from FNF in November 2017. The architect of that spinoff is Executive Chairman William Foley II, a Fidelity National founder who served as the title insurance firm's CEO until 2007 and has been chairman ever since.
One of Cannae's current biggest investments is a 16.5% stake in Ceridian HCM (CDAY), the human capital management software company behind Dayforce, which Ceridian acquired in 2012. Another big investment is Cannae's 24.5% stake in data analytics firm, which it acquired as part of an investment group that bought the firm for $6.9 billion in February 2019.
Since Cannae was created in 2014, it has generated $1.9 billion in realized value for shareholders from investments in restaurants, human capital management, automotive, data analytics and more. That has translated into a roughly 20% internal rate of return. The most recent realization for Cannae shareholders was four secondary offerings of Ceridian stock that generated $575 million in total net proceeds.
Of the best mid-cap stocks you can buy, Cannae is likely the most unsung. But it's worth considering nonetheless.
SEE ALSO: The 7 Best Financial Stocks for 2020
Gray Television
Market value: $2.2 billion
Dividend yield: N/A
Analysts' opinion: 7 Strong Buy, 0 Buy, 0 Hold, 0 Sell, 0 Strong Sell
As its name suggests, Gray Television (GTN, $21.97) owns television stations in 93 different American markets. Its stations are ranked either first or second in 95% of those markets.
You might think it odd to see a TV-station owner amid a group of "growthy" mid-cap stocks in 2020. But the Robinson family - who still controls the company 27 years after Georgia entrepreneur Mack Robinson acquired what was then called Gray Communications, a small operation consisting of three TV stations - has nurtured this business into a $2 billion-plus company that delivers strong, albeit volatile, returns. GTN has outperformed the S&P 500, 115% to 63%, over the past five years.
Gray completed a $3.7 billion cash-and-stock acquisition of Raycom Media in January 2019. The deal made Gray's portfolio of 142 stations the third-largest portfolio in the U.S., covering 24% of all households and doubling its annual revenues to more than $2 billion. It also plunged the company into larger markets including Tampa Bay, Charlotte, Cleveland, Cincinnati, West Palm Beach and Birmingham.
In November, Gray announced the company's best third-quarter results in its history, thanks in large part to the Raycom acquisition. Through the first nine months of fiscal 2019, it produced $499 million in adjusted EBITDA and was on target to generate $85 million in annualized first-year synergies.
When Gray announced the Raycom acquisition in June 2018, it committed to paying down the debt quickly. When the deal closed in early 2019, net debt was approximately five times operating cash flow (OCF). By the end of September 2019, it was down to 4.5 times OCF. Gray aims to reduce that figure to below 4 times OCF in fiscal 2020. Most of the cash not going toward debt will pay for stock buybacks as part of the $150 million repurchase authorization the board approved in November.
When it comes to owning television stations, scale is everything. The Raycom deal put Gray in the big leagues.
SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
Verint Systems
Market value: $3.9 billion
Dividend yield: N/A
Analysts' opinion: 7 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell
Investors have roughly a year to buy Verint Systems (VRNT, $57.82) before the mid-cap cloud-based software company, which provides customer engagement and cyber intelligence solutions, splits into two publicly traded businesses.
Verint announced the decision on Dec. 4, 2019. It also said at the time that private equity firm Apax Partners would invest $200 million in Verint's customer engagement business in April 2020, and a second sum of $200 million once the two businesses officially separate, which is expected to happen shortly after the company's fiscal year ended Jan. 31, 2021.
"Apax Partners has a proven track record of creating value by partnering with leading software companies around the world, including significant experience in both carve-outs and cloud transitions," Verint CEO Dan Bodner said in a statement. "The investment represents a strong vote of confidence in our strategy and future growth opportunities."
Verint also will undertake a new share repurchase authorization program that permits it to buy back up to $300 million of its stock before Feb. 1, 2021.
VRNT shares have spiked by more than 20% since it announced the split. But the upside remains excellent. Following the split, investors will own shares in a customer engagement business that generates annual revenue of almost $1 billion, and a cyber intelligence unit with annual sales approaching $500 million.
The separation will allow both businesses to focus on growing their respective units while simultaneously making it easier for investors to evaluate both businesses. Buying Verint stock prior to the separation allows you to buy in before their respective growth stories get transmitted to the wider investment community. Better still, at 14.4 times forward-looking earnings estimates, VRNT gets you growth at a reasonable price.
SEE ALSO: The 15 Best Tech Stocks to Buy for 2020
Simply Good Foods
Market value: $2.3 billion
Dividend yield: N/A
Analysts' opinion: 7 Strong Buy, 2 Buy, 1 Hold, 0 Sell, 0 Strong Sell
If you're familiar with the Atkins diet, you might also be aware of Simply Good Foods (SMPL, $23.84). The company was created in July 2017 with the merger of Conyers Park Acquisition Corp. and Atkins Nutritionals, the health and wellness brand created by cardiologist Dr. Robert Atkins.
Simply Good Foods, which also includes the Quest Nutrition and Simply Protein brands, provides premium-priced snacks and meal replacement products to North American consumers interested in healthier alternatives.
In November 2019, Simply Good Foods acquired Quest Nutrition LLC for $1 billion in November 2019. Quest brought to the table $345 million in annual sales, 17% annual sales growth, and annual adjusted EBITDA of $70 million, including $20 million in run-rate synergies following the acquisition. Both companies have asset-light, low-capital-spending business models that should provide long-term profit growth.
For the quarter ended Nov. 30 - the first quarter of its 2020 fiscal year - SMPL's revenues grew 25.8% year-over-year to $152.2 million, while adjusted EBITDA rose 19.1% in the quarter, to $31.8 million. Thanks to the Quest Nutrition acquisition, it expects revenues and adjusted EBITDA in fiscal 2020 to hit $850 million and $154 million, respectively.
The base case is simpler: As long as Americans remain concerned about eating healthier, Simply Good Foods should remain an attractive investment.
SEE ALSO: 10 Best Consumer Staples Stocks to Buy for 2020
Newmark Group
Market value: $2.2 billion
Dividend yield: 3.3%
Analysts' opinion: 4 Strong Buy, 1 Buy, 1 Hold, 0 Sell, 0 Strong Sell
Newmark Group (NMRK, $12.26) is a New York-based, full-service commercial real estate advisory firm that provides services to both real estate investors, owners and tenants. Newmark was spun off from BGC Partners (BGCP) in November 2018.
Newmark grew its revenues by 18% year-over-year to $2.2 billion during the trailing 12 months ended Sept. 30, 2019. It also boasted an adjusted EBITDA margin of 25% - significantly higher than any of its major peers. Also, the business model generates significant recurring revenue. Roughly 67% of NMRK's sales were recurring over the past year, with the rest considered transactional in nature. That number has been slowly but steadily rising; recurring revenues were 61% of overall sales in 2016.
The estimated global revenue for commercial real estate services is $225 billion. Newmark currently accounts for approximately 1% of this amount and 6.5% of the 10 largest CRE brokerages.
Multifamily investment sales will be a key area over the next few years. That's because an aging population likely will result in many people selling their homes and moving into multifamily rental properties. That should heat up the buying and selling of apartment buildings, creating demand for Newmark's CRE services.
Newmark's overall business is more explosive than it might seem on its face. The company's revenues have grown by 34% compounded annually. In the future, its annual growth should slow to 20% a year - a more sustainable figure for a company with more than $2 billion in annual sales. Now, NMRK shares just need to reflect that reality.
SEE ALSO: 14 Robo Advisers: Which Is the Best for You?
Envestnet
Market value: $4.3 billion
Dividend yield: N/A
Analysts' opinion: 10 Strong Buy, 2 Buy, 0 Hold, 1 Sell, 0 Strong Sell
Envestnet (ENV, $81.51) got its start in 1999, when the late Judson Bergman, founder and former CEO, recognized that independent investment advisors needed an integrated wealth management platform to meet the growing expectations of investors. Today, Envestnet's platform has total assets of $3.4 trillion and performs billions of transactions on an annual basis, helping more than 100,000 financial advisors manage their growing wealth management practices.
The mid-cap's business model boasts an excellent mix of organic growth combined with an aggressive acquisition strategy. Evestnet grew sales by 24% annually between 2008 and 2018. At the same time, it grew adjusted EBITDA by 28% annually over the same decade. Down the road, ENV plans to grow revenues and adjusted EBITDA by at least 15% and 18%, respectively - slower than before, but still brisk growth given the company's current size.
Despite helping a significant number of financial advisors already, the growth opportunities are significant. Envestnet says that by simply growing its existing relationships with 88,000 of its existing advisors, ENV could add $4 trillion to its platform. By adding 130,000 new advisors, it could add an additional $12 trillion to its platform.
Envestnet generates three streams of revenue: asset-based recurring revenue, which accounted for 54% of sales during the nine months ended September 2019; subscription-based recurring revenue (42%) and professional services (4%). Overall, sales grew by nearly 10% year-over-year.
A new growth opportunity to watch: In January, Envestnet's portfolio consulting group, in conjunction with Invesco (IVZ), launched seven new model portfolios that combine passive and active fund management, providing advisors with enhanced returns for their clients while managing the downside risk. Including these seven portfolios, Envestnet's ActivePassive Portfolios account for $4 billion in assets under management on its platform. This number could grow considerably in the coming years.
SEE ALSO: The 11 Best Growth Stocks to Buy for 2020
Kennedy-Wilson Holdings
Market value: $3.2 billion
Dividend yield: 3.9%
Analysts' opinion: 4 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell
Kennedy-Wilson Holdings (KW, $22.42) is another real estate play among these mid-cap stocks to buy. It owns, operates, and invests in multifamily and office properties in the Western part of the U.S., U.K. and Ireland. As of Sept. 30, 2019, KW had an ownership interest in approximately 48.1 million square feet of property, including 28,173 multifamily rental units. Its investment portfolio has a book value of $11.8 billion. On average, Kennedy-Wilson has an ownership stake of 60% in each of its investment properties.
Kennedy-Wilson has two operating units: KW Investments, which holds the real estate interests it owns, and KW Investment Management and Real Estate Services (IMRES), which generates fees by managing and operating real estate owned by other investors.
In late December, Kennedy-Wilson announced the closing of Kennedy Wilson Real Estate Fund VI - a $775 million fund that will focus on value-add real estate investments. The company put $82 million of its own capital into the fund, which will be able to acquire up to $2 billion in commercial real estate. As of the start of the year, Real Estate Fund VI had already committed $386 million in capital, acquiring $1.1 billion in real estate and adding to the revenue generation potential of its investment management unit.
"Institutional investors continue to show a strong appetite for real estate in West Coast markets, many of which are leading the country in job creation, wage gains and technology trends," Nicholas Colonna, Kennedy Wilson's president of commercial investments and fund management, said in a press release.
One last note: CEO William McMorrow has been chief executive of the company since 1988, and he owns 9.3% of its stock. Remember: Insiders with considerable "skin in the game" have additional motivation to drive shareholder value.
SEE ALSO: The 10 Best REITs to Buy for 2020
Helen of Troy
Market value: $4.9 billion
Dividend yield: N/A
Analysts' opinion: 4 Strong Buy, 1 Buy, 0 Hold, 0 Sell, 0 Strong Sell
Helen of Troy (HELE, $195.77) likely brings to mind Greek mythology. Helen was the daughter of Zeus and Leda, and her twin brothers were Castor and Pollux. Interestingly, Castor & Pollux is a fairly well-known natural pet food brand in the U.S.
Helen of Troy is a consumer products company, too, but it deals in the health, housewares and beauty segments. Its brands include Vicks humidifiers and vaporizers, OXO cooking and baking utensils and Sure deodorant, and most of them have been cobbled together through more than a dozen acquisitions since 2003.
However, Helen of Troy broke a roughly three-year M&A dry spell in January 2020, when it paid $255 million in cash for Drybar Products LLC. You might be familiar with the Drybar blowout hair salons that have become popular in recent years. HELE is purchasing Drybar's line of hair-care products, while Drybar Holdings LLC will continue to operate its hair salons.
"Drybar will complement our Revlon and HOT Tools products, allowing our brands to resonate with consumers and professionals across the good, better, and best (hair appliance) segments," CEO Julien Mininberg said about the transaction.
Helen of Troy might continue to seek out acquisitions that add value to its three operating segments, whether it be of the smaller, tuck-in variety or larger, transformational deals, but the latter are more difficult to come by.
In its most recent quarter ended Nov. 30, HELE boasted sales growth of 10.1% to $474.7 million, and a 25.2% pop in adjusted operating profits to $79.1 million. Results like that, which have driven 69% price gains over the past year, will keep Helen of Troy among the best mid-cap stocks to buy.
SEE ALSO: 5 Marvelous Mid-Cap Funds
Brookfield Renewable Partners LP
Market value: $9.3 billion
Dividend yield: 4.2%
Analysts' opinion: 2 Strong Buy, 0 Buy, 8 Hold, 0 Sell, 1 Strong Sell
Brookfield Renewable Partners LP (BEP, $52.02) is one of the world's largest publicly traded owners and operators of renewable energy facilities. Its current portfolio has more than 18,000 megawatts of capacity from 5,253 generating facilities on four continents, including North America.
Hydroelectric power accounts for 74% of BEP's assets, with wind, solar, distributed generation and storage facilities accounting for the rest. The global investment in new renewable energy in the 2010s was estimated to be more than $2.6 trillion, and yet it still accounts for a small percentage of the global power generation.
"Investing in renewable energy is investing in a sustainable and profitable future, as the last decade of incredible growth in renewables has shown," Inger Andersen, executive director of the United Nations Environment Program said in September. "It is clear that we need to rapidly step up the pace of the global switch to renewables if we are to meet international climate and development goals."
Brookfield expects to be a leader in the years to come. Its goal is to deliver long-term total returns of 12% to 15% per unit (for master limited partnerships like Brookfield, a unit is like a share of a traditional company's stock) from its $50 billion in worldwide power assets. Between 1999 and 2018, Brookfield Renewable generated an annual total return of 16%, which is significantly higher than the 6% total return for the S&P 500.
While BEP might be one of the best mid-cap stocks to buy, it's also among the easiest to accidentally trip over. That's because you can buy the company in three different ways. First, you can buy BEP units, which are listed on the New York Stock Exchange. Second, the company plans to create a second investment vehicle, a Canadian corporation, which will also list on the NYSE under the symbol BEPC; Brookfield is doing this to increase the company's inclusion in major indexes that can't invest in master limited partnerships. The third option is to invest in Brookfield Asset Management (BAM), which owns 60% of the company.
No matter what you choose to do, Brookfield Renewable is participating in one of the biggest secular trends of the 21st century. It makes sense to own a piece of history.
SEE ALSO: Hedge Funds' Top 25 Blue-Chip Stocks to Buy Now
Canada Goose
Market value: $3.7 billion
Dividend yield: N/A
Analysts' opinion: 9 Strong Buy, 0 Buy, 4 Hold, 0 Sell, 0 Strong Sell
Canada Goose (GOOS, $33.30) - the company best known for its down jackets filled with real goose feathers, and worn by celebrities and average consumers alike - is a mid-cap stock that might soar eventually. But it's also one of those companies that clearly will suffer growing pains on its way to greatness. Lululemon (LULU), another great Canadian brand, went through a number of highs and lows before it took flight in 2019.
Canada Goose did not take flight last year. In 2019, GOOS shares lost 17% while the S&P 500 logged a 29% gain - its best year since 2013. The firm has experienced a rough start to 2020, too. Most recently, it warned on Feb. 7 that various headwinds, including the impact of the coronavirus on Chinese sales, would weigh on its 2020 results. That's unfortunate, because outside the temporary setback, the company's Chinese expansion has been proceeding nicely.
One of Canada Goose's biggest problems hasn't been operational, but in setting expectations - something that has frustrated analysts and investors alike.
"Demand remains exceptional, but communication leaves our feathers ruffled," Susquehanna Financial Group analyst Sam Poser wrote in a note to investors in November, after Canada Goose warned about a significant revenue decline for its fiscal third quarter.
However, Poser also called GOOS "one of the few true growth stories in the consumer discretionary sector" and said that "if communication does improve, multiple expansion will follow, in our view." While he recently lowered his price target to $50 per share to reflect the company's current hurdles and recent price movement, he maintained a Buy-equivalent rating, and his target still reflects 50% upside. Poser's hardly alone - despite Canada Goose's issues, nine of 13 analysts tracked by The Wall Street Journal say to buy the company's shares.
One thing to watch for going forward is whether Canada Goose proves it can compete with luxury players such as Italy's Moncler SpA.
"Canada Goose is still a relatively small brand, with about two thirds of its sales in North America," Bloomberg Intelligence analyst Maxime Boucher recently told Financial Post. "It must use the next few quarters to establish itself as a top global luxury player." Boucher goes on to suggest that it also needs to reduce its inventories to levels more befitting a luxury brand.
Should it do that, GOOS will unlock the potential that drove investors into a buying frenzy for the first year after its 2017 IPO.
SEE ALSO: The 25 Best Low-Fee Mutual Funds to Buy in 2020
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
SEE ALSO: 13 Super Small-Cap Stocks to Buy for 2020 and Beyond Aaron's Market value: $3.8 billion Dividend yield: 0.3% Analysts' opinion: 9 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell It's hard to fathom a company such as Aaron's (AAN, $56.93), which made a name for itself hawking consumer goods on a lease-to-own basis, would do well in a strong economy. Stephens financial analyst Vincent Caintic has Aaron's among the best mid-caps to buy right now, recently naming AAN as one of the independent financial services firm's "top picks" for 2020. "The momentum in Hawthorne has been building all year, and we saw our highest levels of organic growth in the fourth quarter, giving us a high degree of confidence as we look ahead into fiscal 2020," CEO Jim Hagedorn said in the company's Q4 2019 earnings release.
|
SEE ALSO: 13 Super Small-Cap Stocks to Buy for 2020 and Beyond Aaron's Market value: $3.8 billion Dividend yield: 0.3% Analysts' opinion: 9 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell It's hard to fathom a company such as Aaron's (AAN, $56.93), which made a name for itself hawking consumer goods on a lease-to-own basis, would do well in a strong economy. Stephens financial analyst Vincent Caintic has Aaron's among the best mid-caps to buy right now, recently naming AAN as one of the independent financial services firm's "top picks" for 2020. SEE ALSO: The 7 Best Financial Stocks for 2020 Gray Television Market value: $2.2 billion Dividend yield: N/A Analysts' opinion: 7 Strong Buy, 0 Buy, 0 Hold, 0 Sell, 0 Strong Sell As its name suggests, Gray Television (GTN, $21.97) owns television stations in 93 different American markets.
|
SEE ALSO: 13 Super Small-Cap Stocks to Buy for 2020 and Beyond Aaron's Market value: $3.8 billion Dividend yield: 0.3% Analysts' opinion: 9 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell It's hard to fathom a company such as Aaron's (AAN, $56.93), which made a name for itself hawking consumer goods on a lease-to-own basis, would do well in a strong economy. Stephens financial analyst Vincent Caintic has Aaron's among the best mid-caps to buy right now, recently naming AAN as one of the independent financial services firm's "top picks" for 2020. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020 Verint Systems Market value: $3.9 billion Dividend yield: N/A Analysts' opinion: 7 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell Investors have roughly a year to buy Verint Systems (VRNT, $57.82) before the mid-cap cloud-based software company, which provides customer engagement and cyber intelligence solutions, splits into two publicly traded businesses.
|
SEE ALSO: 13 Super Small-Cap Stocks to Buy for 2020 and Beyond Aaron's Market value: $3.8 billion Dividend yield: 0.3% Analysts' opinion: 9 Strong Buy, 0 Buy, 1 Hold, 0 Sell, 0 Strong Sell It's hard to fathom a company such as Aaron's (AAN, $56.93), which made a name for itself hawking consumer goods on a lease-to-own basis, would do well in a strong economy. Stephens financial analyst Vincent Caintic has Aaron's among the best mid-caps to buy right now, recently naming AAN as one of the independent financial services firm's "top picks" for 2020. SEE ALSO: The 7 Best Financial Stocks for 2020 Gray Television Market value: $2.2 billion Dividend yield: N/A Analysts' opinion: 7 Strong Buy, 0 Buy, 0 Hold, 0 Sell, 0 Strong Sell As its name suggests, Gray Television (GTN, $21.97) owns television stations in 93 different American markets.
|
8973.0
|
2020-01-31 00:00:00 UTC
|
Notable Friday Option Activity: CRUS, AAN, CPRI
|
AAN
|
https://www.nasdaq.com/articles/notable-friday-option-activity%3A-crus-aan-cpri-2020-01-31
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Cirrus Logic Inc (Symbol: CRUS), where a total of 6,105 contracts have traded so far, representing approximately 610,500 underlying shares. That amounts to about 81.3% of CRUS's average daily trading volume over the past month of 751,330 shares. Particularly high volume was seen for the $81 strike call option expiring January 31, 2020, with 348 contracts trading so far today, representing approximately 34,800 underlying shares of CRUS. Below is a chart showing CRUS's trailing twelve month trading history, with the $81 strike highlighted in orange:
Aaron's Inc (Symbol: AAN) saw options trading volume of 4,237 contracts, representing approximately 423,700 underlying shares or approximately 74.2% of AAN's average daily trading volume over the past month, of 570,900 shares. Especially high volume was seen for the $65 strike call option expiring February 21, 2020, with 2,016 contracts trading so far today, representing approximately 201,600 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange:
And Capri Holdings Ltd (Symbol: CPRI) saw options trading volume of 16,462 contracts, representing approximately 1.6 million underlying shares or approximately 74% of CPRI's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $35 strike call option expiring March 20, 2020, with 3,212 contracts trading so far today, representing approximately 321,200 underlying shares of CPRI. Below is a chart showing CPRI's trailing twelve month trading history, with the $35 strike highlighted in orange:
For the various different available expirations for CRUS options, AAN options, or CPRI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $65 strike call option expiring February 21, 2020, with 2,016 contracts trading so far today, representing approximately 201,600 underlying shares of AAN. Below is a chart showing CRUS's trailing twelve month trading history, with the $81 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 4,237 contracts, representing approximately 423,700 underlying shares or approximately 74.2% of AAN's average daily trading volume over the past month, of 570,900 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Capri Holdings Ltd (Symbol: CPRI) saw options trading volume of 16,462 contracts, representing approximately 1.6 million underlying shares or approximately 74% of CPRI's average daily trading volume over the past month, of 2.2 million shares.
|
Below is a chart showing CRUS's trailing twelve month trading history, with the $81 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 4,237 contracts, representing approximately 423,700 underlying shares or approximately 74.2% of AAN's average daily trading volume over the past month, of 570,900 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Capri Holdings Ltd (Symbol: CPRI) saw options trading volume of 16,462 contracts, representing approximately 1.6 million underlying shares or approximately 74% of CPRI's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing CPRI's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for CRUS options, AAN options, or CPRI options, visit StockOptionsChannel.com.
|
Below is a chart showing CRUS's trailing twelve month trading history, with the $81 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 4,237 contracts, representing approximately 423,700 underlying shares or approximately 74.2% of AAN's average daily trading volume over the past month, of 570,900 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Capri Holdings Ltd (Symbol: CPRI) saw options trading volume of 16,462 contracts, representing approximately 1.6 million underlying shares or approximately 74% of CPRI's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $65 strike call option expiring February 21, 2020, with 2,016 contracts trading so far today, representing approximately 201,600 underlying shares of AAN.
|
Below is a chart showing CRUS's trailing twelve month trading history, with the $81 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 4,237 contracts, representing approximately 423,700 underlying shares or approximately 74.2% of AAN's average daily trading volume over the past month, of 570,900 shares. Especially high volume was seen for the $65 strike call option expiring February 21, 2020, with 2,016 contracts trading so far today, representing approximately 201,600 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $65 strike highlighted in orange: And Capri Holdings Ltd (Symbol: CPRI) saw options trading volume of 16,462 contracts, representing approximately 1.6 million underlying shares or approximately 74% of CPRI's average daily trading volume over the past month, of 2.2 million shares.
|
8974.0
|
2020-01-17 00:00:00 UTC
|
AAN Makes Bullish Cross Above Critical Moving Average
|
AAN
|
https://www.nasdaq.com/articles/aan-makes-bullish-cross-above-critical-moving-average-2020-01-17
|
nan
|
nan
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.70, changing hands as high as $61.16 per share. Aaron's Inc shares are currently trading up about 1% on the day. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $47 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $60.77.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.70, changing hands as high as $61.16 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $47 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $60.77. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.70, changing hands as high as $61.16 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $47 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $60.77. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.70, changing hands as high as $61.16 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $47 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $60.77. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.70, changing hands as high as $61.16 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $47 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $60.77. Aaron's Inc shares are currently trading up about 1% on the day.
|
8975.0
|
2020-01-13 00:00:00 UTC
|
The Math Shows DVLU Can Go To $22
|
AAN
|
https://www.nasdaq.com/articles/the-math-shows-dvlu-can-go-to-%2422-2020-01-13
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Dorsey Wright Momentum & Value ETF (Symbol: DVLU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $21.71 per unit.
With DVLU trading at a recent price near $19.79 per unit, that means that analysts see 9.68% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DVLU's underlying holdings with notable upside to their analyst target prices are Vistra Energy Corp (Symbol: VST), Aaron's Inc (Symbol: AAN), and Ally Financial Inc (Symbol: ALLY). Although VST has traded at a recent price of $22.76/share, the average analyst target is 42.79% higher at $32.50/share. Similarly, AAN has 34.75% upside from the recent share price of $57.72 if the average analyst target price of $77.78/share is reached, and analysts on average are expecting ALLY to reach a target price of $37.42/share, which is 24.93% above the recent price of $29.95. Below is a twelve month price history chart comparing the stock performance of VST, AAN, and ALLY:
Combined, VST, AAN, and ALLY represent 6.19% of the First Trust Dorsey Wright Momentum & Value ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Dorsey Wright Momentum & Value ETF DVLU $19.79 $21.71 9.68%
Vistra Energy Corp VST $22.76 $32.50 42.79%
Aaron's Inc AAN $57.72 $77.78 34.75%
Ally Financial Inc ALLY $29.95 $37.42 24.93%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a twelve month price history chart comparing the stock performance of VST, AAN, and ALLY: Combined, VST, AAN, and ALLY represent 6.19% of the First Trust Dorsey Wright Momentum & Value ETF. First Trust Dorsey Wright Momentum & Value ETF DVLU $19.79 $21.71 9.68% Vistra Energy Corp VST $22.76 $32.50 42.79% Aaron's Inc AAN $57.72 $77.78 34.75% Ally Financial Inc ALLY $29.95 $37.42 24.93% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DVLU's underlying holdings with notable upside to their analyst target prices are Vistra Energy Corp (Symbol: VST), Aaron's Inc (Symbol: AAN), and Ally Financial Inc (Symbol: ALLY).
|
Three of DVLU's underlying holdings with notable upside to their analyst target prices are Vistra Energy Corp (Symbol: VST), Aaron's Inc (Symbol: AAN), and Ally Financial Inc (Symbol: ALLY). Similarly, AAN has 34.75% upside from the recent share price of $57.72 if the average analyst target price of $77.78/share is reached, and analysts on average are expecting ALLY to reach a target price of $37.42/share, which is 24.93% above the recent price of $29.95. First Trust Dorsey Wright Momentum & Value ETF DVLU $19.79 $21.71 9.68% Vistra Energy Corp VST $22.76 $32.50 42.79% Aaron's Inc AAN $57.72 $77.78 34.75% Ally Financial Inc ALLY $29.95 $37.42 24.93% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, AAN has 34.75% upside from the recent share price of $57.72 if the average analyst target price of $77.78/share is reached, and analysts on average are expecting ALLY to reach a target price of $37.42/share, which is 24.93% above the recent price of $29.95. Three of DVLU's underlying holdings with notable upside to their analyst target prices are Vistra Energy Corp (Symbol: VST), Aaron's Inc (Symbol: AAN), and Ally Financial Inc (Symbol: ALLY). Below is a twelve month price history chart comparing the stock performance of VST, AAN, and ALLY: Combined, VST, AAN, and ALLY represent 6.19% of the First Trust Dorsey Wright Momentum & Value ETF.
|
Three of DVLU's underlying holdings with notable upside to their analyst target prices are Vistra Energy Corp (Symbol: VST), Aaron's Inc (Symbol: AAN), and Ally Financial Inc (Symbol: ALLY). Similarly, AAN has 34.75% upside from the recent share price of $57.72 if the average analyst target price of $77.78/share is reached, and analysts on average are expecting ALLY to reach a target price of $37.42/share, which is 24.93% above the recent price of $29.95. Below is a twelve month price history chart comparing the stock performance of VST, AAN, and ALLY: Combined, VST, AAN, and ALLY represent 6.19% of the First Trust Dorsey Wright Momentum & Value ETF.
|
8976.0
|
2019-12-23 00:00:00 UTC
|
AAN August 2020 Options Begin Trading
|
AAN
|
https://www.nasdaq.com/articles/aan-august-2020-options-begin-trading-2019-12-23
|
nan
|
nan
|
Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the August 2020 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new August 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $55.00 strike price has a current bid of $4.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $50.30 (before broker commissions). To an investor already interested in purchasing shares of AAN, that could represent an attractive alternative to paying $58.38/share today.
Because the $55.00 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.55% return on the cash commitment, or 12.89% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aaron's Inc, and highlighting in green where the $55.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $6.00. If an investor was to purchase shares of AAN stock at the current price level of $58.38/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.05% if the stock gets called away at the August 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $60.00 strike highlighted in red:
Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 47%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 10.28% boost of extra return to the investor, or 15.50% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example, as well as the call contract example, are both approximately 40%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $58.38) to be 33%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the August 2020 expiration.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the August 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new August 2020 contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the August 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new August 2020 contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the August 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new August 2020 contracts and identified one put and one call contract of particular interest.
|
8977.0
|
2019-12-17 00:00:00 UTC
|
Aaron's, Inc. (AAN) Ex-Dividend Date Scheduled for December 18, 2019
|
AAN
|
https://www.nasdaq.com/articles/aarons-inc.-aan-ex-dividend-date-scheduled-for-december-18-2019-2019-12-17
|
nan
|
nan
|
Aaron's, Inc. (AAN) will begin trading ex-dividend on December 18, 2019. A cash dividend payment of $0.04 per share is scheduled to be paid on January 06, 2020. Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 14.29% increase over prior dividend payment. At the current stock price of $59.66, the dividend yield is .27%.
The previous trading day's last sale of AAN was $59.66, representing a -24.14% decrease from the 52 week high of $78.65 and a 51.88% increase over the 52 week low of $39.28.
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and United Rentals, Inc. (URI). AAN's current earnings per share, an indicator of a company's profitability, is $2.91. Zacks Investment Research reports AAN's forecasted earnings growth in 2019 as 13.43%, compared to an industry average of 4.8%.
For more information on the declaration, record and payment dates, visit the AAN Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAN through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAN as a top-10 holding:
GS ActiveBeta U.S. Small Cap Equity ETF (GSSC)
TRIMTABS ETF TRUST (TTAC).
The top-performing ETF of this group is GSSC with an increase of 6.19% over the last 100 days. It also has the highest percent weighting of AAN at 0.26%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AAN is a part of the Technology sector, which includes companies such as Paychex, Inc. (PAYX) and United Rentals, Inc. (URI). Zacks Investment Research reports AAN's forecasted earnings growth in 2019 as 13.43%, compared to an industry average of 4.8%. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. AAN's current earnings per share, an indicator of a company's profitability, is $2.91. Aaron's, Inc. (AAN) will begin trading ex-dividend on December 18, 2019.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of AAN was $59.66, representing a -24.14% decrease from the 52 week high of $78.65 and a 51.88% increase over the 52 week low of $39.28. For more information on the declaration, record and payment dates, visit the AAN Dividend History page.
|
Shareholders who purchased AAN prior to the ex-dividend date are eligible for the cash dividend payment. AAN's current earnings per share, an indicator of a company's profitability, is $2.91. Aaron's, Inc. (AAN) will begin trading ex-dividend on December 18, 2019.
|
8978.0
|
2019-12-16 00:00:00 UTC
|
Aaron's (AAN) Shares Cross Above 200 DMA
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-shares-cross-above-200-dma-2019-12-16
|
nan
|
nan
|
In trading on Monday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.05, changing hands as high as $60.22 per share. Aaron's Inc shares are currently trading up about 1.5% on the day. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.69.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Monday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.05, changing hands as high as $60.22 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.69. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Monday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.05, changing hands as high as $60.22 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.69. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Monday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.05, changing hands as high as $60.22 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.69. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Monday, shares of Aaron's Inc (Symbol: AAN) crossed above their 200 day moving average of $60.05, changing hands as high as $60.22 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.69. Aaron's Inc shares are currently trading up about 1.5% on the day.
|
8979.0
|
2019-12-16 00:00:00 UTC
|
Ex-Dividend Reminder: Philip Morris International, Aaron's and New Jersey Resources
|
AAN
|
https://www.nasdaq.com/articles/ex-dividend-reminder%3A-philip-morris-international-aarons-and-new-jersey-resources-2019-12
|
nan
|
nan
|
Looking at the universe of stocks we cover at Dividend Channel, on 12/18/19, Philip Morris International Inc (Symbol: PM), Aaron's Inc (Symbol: AAN), and New Jersey Resources Corp (Symbol: NJR) will all trade ex-dividend for their respective upcoming dividends. Philip Morris International Inc will pay its quarterly dividend of $1.17 on 1/10/20, Aaron's Inc will pay its quarterly dividend of $0.04 on 1/6/20, and New Jersey Resources Corp will pay its quarterly dividend of $0.3125 on 1/2/20. As a percentage of PM's recent stock price of $85.50, this dividend works out to approximately 1.37%, so look for shares of Philip Morris International Inc to trade 1.37% lower — all else being equal — when PM shares open for trading on 12/18/19. Similarly, investors should look for AAN to open 0.07% lower in price and for NJR to open 0.72% lower, all else being equal.
Below are dividend history charts for PM, AAN, and NJR, showing historical dividends prior to the most recent ones declared.
Philip Morris International Inc (Symbol: PM):
Aaron's Inc (Symbol: AAN):
New Jersey Resources Corp (Symbol: NJR):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 5.47% for Philip Morris International Inc, 0.27% for Aaron's Inc, and 2.87% for New Jersey Resources Corp.
In Monday trading, Philip Morris International Inc shares are currently up about 1%, Aaron's Inc shares are up about 1.3%, and New Jersey Resources Corp shares are up about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at the universe of stocks we cover at Dividend Channel, on 12/18/19, Philip Morris International Inc (Symbol: PM), Aaron's Inc (Symbol: AAN), and New Jersey Resources Corp (Symbol: NJR) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAN to open 0.07% lower in price and for NJR to open 0.72% lower, all else being equal. Below are dividend history charts for PM, AAN, and NJR, showing historical dividends prior to the most recent ones declared.
|
Looking at the universe of stocks we cover at Dividend Channel, on 12/18/19, Philip Morris International Inc (Symbol: PM), Aaron's Inc (Symbol: AAN), and New Jersey Resources Corp (Symbol: NJR) will all trade ex-dividend for their respective upcoming dividends. Philip Morris International Inc (Symbol: PM): Aaron's Inc (Symbol: AAN): New Jersey Resources Corp (Symbol: NJR): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAN to open 0.07% lower in price and for NJR to open 0.72% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 12/18/19, Philip Morris International Inc (Symbol: PM), Aaron's Inc (Symbol: AAN), and New Jersey Resources Corp (Symbol: NJR) will all trade ex-dividend for their respective upcoming dividends. Philip Morris International Inc (Symbol: PM): Aaron's Inc (Symbol: AAN): New Jersey Resources Corp (Symbol: NJR): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAN to open 0.07% lower in price and for NJR to open 0.72% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 12/18/19, Philip Morris International Inc (Symbol: PM), Aaron's Inc (Symbol: AAN), and New Jersey Resources Corp (Symbol: NJR) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAN to open 0.07% lower in price and for NJR to open 0.72% lower, all else being equal. Below are dividend history charts for PM, AAN, and NJR, showing historical dividends prior to the most recent ones declared.
|
8980.0
|
2019-12-10 00:00:00 UTC
|
VCR's Underlying Holdings Could Mean 12% Gain Potential
|
AAN
|
https://www.nasdaq.com/articles/vcrs-underlying-holdings-could-mean-12-gain-potential-2019-12-10
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard Consumer Discretionary ETF (Symbol: VCR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $205.20 per unit.
With VCR trading at a recent price near $183.91 per unit, that means that analysts see 11.58% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VCR's underlying holdings with notable upside to their analyst target prices are Etsy Inc (Symbol: ETSY), Aaron's Inc (Symbol: AAN), and Culp Inc (Symbol: CULP). Although ETSY has traded at a recent price of $41.16/share, the average analyst target is 59.54% higher at $65.67/share. Similarly, AAN has 33.56% upside from the recent share price of $58.65 if the average analyst target price of $78.33/share is reached, and analysts on average are expecting CULP to reach a target price of $19.00/share, which is 31.31% above the recent price of $14.47. Below is a twelve month price history chart comparing the stock performance of ETSY, AAN, and CULP:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a twelve month price history chart comparing the stock performance of ETSY, AAN, and CULP: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VCR's underlying holdings with notable upside to their analyst target prices are Etsy Inc (Symbol: ETSY), Aaron's Inc (Symbol: AAN), and Culp Inc (Symbol: CULP). Similarly, AAN has 33.56% upside from the recent share price of $58.65 if the average analyst target price of $78.33/share is reached, and analysts on average are expecting CULP to reach a target price of $19.00/share, which is 31.31% above the recent price of $14.47.
|
Three of VCR's underlying holdings with notable upside to their analyst target prices are Etsy Inc (Symbol: ETSY), Aaron's Inc (Symbol: AAN), and Culp Inc (Symbol: CULP). Similarly, AAN has 33.56% upside from the recent share price of $58.65 if the average analyst target price of $78.33/share is reached, and analysts on average are expecting CULP to reach a target price of $19.00/share, which is 31.31% above the recent price of $14.47. Below is a twelve month price history chart comparing the stock performance of ETSY, AAN, and CULP: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, AAN has 33.56% upside from the recent share price of $58.65 if the average analyst target price of $78.33/share is reached, and analysts on average are expecting CULP to reach a target price of $19.00/share, which is 31.31% above the recent price of $14.47. Below is a twelve month price history chart comparing the stock performance of ETSY, AAN, and CULP: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VCR's underlying holdings with notable upside to their analyst target prices are Etsy Inc (Symbol: ETSY), Aaron's Inc (Symbol: AAN), and Culp Inc (Symbol: CULP).
|
Three of VCR's underlying holdings with notable upside to their analyst target prices are Etsy Inc (Symbol: ETSY), Aaron's Inc (Symbol: AAN), and Culp Inc (Symbol: CULP). Similarly, AAN has 33.56% upside from the recent share price of $58.65 if the average analyst target price of $78.33/share is reached, and analysts on average are expecting CULP to reach a target price of $19.00/share, which is 31.31% above the recent price of $14.47. Below is a twelve month price history chart comparing the stock performance of ETSY, AAN, and CULP: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
8981.0
|
2019-11-08 00:00:00 UTC
|
Aaron's Becomes Oversold (AAN)
|
AAN
|
https://www.nasdaq.com/articles/aarons-becomes-oversold-aan-2019-11-08
|
nan
|
nan
|
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $57.91 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 67.0. A bullish investor could look at AAN's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares:
Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $58.22.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $57.91 per share. A bullish investor could look at AAN's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $58.22.
|
A bullish investor could look at AAN's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $58.22. In trading on Friday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $57.91 per share.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $57.91 per share. A bullish investor could look at AAN's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $58.22.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $57.91 per share. A bullish investor could look at AAN's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAN shares: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $58.22.
|
8982.0
|
2019-11-08 00:00:00 UTC
|
Aaron's (AAN) Shares Cross Below 200 DMA
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-shares-cross-below-200-dma-2019-11-08
|
nan
|
nan
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed below their 200 day moving average of $59.28, changing hands as low as $58.91 per share. Aaron's Inc shares are currently trading down about 0.9% on the day. The chart below shows the one year performance of AAN shares, versus its 200 day moving average:
Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.33.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed below their 200 day moving average of $59.28, changing hands as low as $58.91 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.33. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed below their 200 day moving average of $59.28, changing hands as low as $58.91 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.33. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed below their 200 day moving average of $59.28, changing hands as low as $58.91 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.33. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Friday, shares of Aaron's Inc (Symbol: AAN) crossed below their 200 day moving average of $59.28, changing hands as low as $58.91 per share. The chart below shows the one year performance of AAN shares, versus its 200 day moving average: Looking at the chart above, AAN's low point in its 52 week range is $39.28 per share, with $78.5873 as the 52 week high point — that compares with a last trade of $59.33. Aaron's Inc shares are currently trading down about 0.9% on the day.
|
8983.0
|
2019-11-05 00:00:00 UTC
|
Why Shares of Aaron's Declined 15% Tuesday Morning
|
AAN
|
https://www.nasdaq.com/articles/why-shares-of-aarons-declined-15-tuesday-morning-2019-11-05
|
nan
|
nan
|
What happened
Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results.
So what
Starting from the top, revenue checked in with a 1.1% gain compared with the prior year, to $963.81 million, which missed analysts' estimates calling for $975.21 million. The bottom line also failed to impress with adjusted earnings per share of $0.73 during the third quarter, missing analysts' estimates calling for $0.82 per share. Although total Aaron's customers at the end of the quarter increased 5.6%, same-store revenue declined 2.9% during the third quarter. "While the third quarter was challenging, both Progressive and the Aaron's Business accomplished key objectives, which we believe significantly improve our long-term prospects for growth," CEO John Robinson said in a press release.
Televisions are just one of the products Aaron's leases. Image source: Getty Images.
Now what
It was a disappointing and challenging quarter for Aaron's. But it's worth looking at the long term as the company's stock has performed well over the past three years, and remembering that consumer stocks can be challenging to invest in.
AAN data by YCharts.
Aaron's drives revenue primarily from its Aaron's Business segment, and its Progressive segment. During the third quarter, Aaron's Business revenue declined 2.9% while Progressive's revenue increased 4.8% -- but management has plans to improve the former. It launched new sales and marketing programs for Aaron's Business segment that helped push stronger delivery growth, and investors will have to wait for collections performance over the holiday season to see if it can reignite the top line. As always, one quarter doesn't make a trend, and while the third quarter was lackluster, it's important for investors not to have any knee-jerk reactions with today's price decline.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What happened Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results. AAN data by YCharts. "While the third quarter was challenging, both Progressive and the Aaron's Business accomplished key objectives, which we believe significantly improve our long-term prospects for growth," CEO John Robinson said in a press release.
|
What happened Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results. AAN data by YCharts. So what Starting from the top, revenue checked in with a 1.1% gain compared with the prior year, to $963.81 million, which missed analysts' estimates calling for $975.21 million.
|
What happened Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results. AAN data by YCharts. During the third quarter, Aaron's Business revenue declined 2.9% while Progressive's revenue increased 4.8% -- but management has plans to improve the former.
|
What happened Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results. AAN data by YCharts. Now what It was a disappointing and challenging quarter for Aaron's.
|
8984.0
|
2019-11-05 00:00:00 UTC
|
Aaron's (AAN) Q3 2019 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-q3-2019-earnings-call-transcript-2019-11-05
|
nan
|
nan
|
Image source: The Motley Fool.
Aaron's (NYSE: AAN)
Q3 2019 Earnings Call
Nov 04, 2019, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon. My name is Andrea, and I will be your conference coordinator. At this time, I would like to welcome everyone to the Aaron's, Inc. third-quarter 2019earnings conference call
[Operator instructions] I will now turn the conference over to Mr. Michael Dickerson, vice president of corporate communications and investor relations for Aaron's, Inc. You may begin your conference.
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
Thank you. Good afternoon, everyone. Welcome to the Aaron's, Inc. third-quarter 2019earnings conference call
Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations. Many of you have already seen a copy of our earnings release issued this afternoon.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
For those of you who have not, it is available on the Investor Relations section of our website at aarons.com. During this call, certain statements we make will be forward-looking. I want to call your attention to our safe harbor provision for forward-looking statements that can be found at the end of our earnings release. The safe harbor provision identifies risks that may cause the actual results to differ materially from the content of our forward-looking statements.
Also, please see our Form 10-K for the year ended December 31, 2018, and subsequent filings with the SEC for a description of the risks related to our business that may cause actual results to differ materially from our forward-looking statements. Listeners are cautioned not to place undue emphasis on forward-looking statements, and we undertake no obligation to update any such statements. On today's call, we will be referring to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, non-GAAP earnings and non-GAAP EPS, which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release.
The company believes that these non-GAAP financial measures provide meaningful insight into the company's operational performance and cash flows and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding the company's ongoing operational performance. Lastly, effective as of the first quarter of 2019, the company adopted ASC 842, a new standard related to accounting for leases. In our press release, we have added some information to the revenue table to provide you a year-over-year comparison on an equivalent basis. Throughout our call today, we will make comments related to the comparability of certain items with the prior year and assumed in these comments that the adoption of this new standard was made at the beginning of each period compared.
With that, I will now turn the call over to John Robinson.
John Robinson -- President and Chief Executive Officer
Thanks, Mike, and thank you all for joining us today. While the third quarter was challenging, both Progressive and the Aaron's business accomplished key objectives, which we believe significantly improve our long-term prospects for growth. On a consolidated basis, we achieved revenue growth of 8.4% over the same quarter in 2018. This increase is primarily a result of continued strong invoice growth at Progressive and the Aaron's business acquisition of franchised locations in 2018, partially offset by the closure of underperforming Aaron's stores in the first half of 2019.
Adjusted EBITDA and diluted non-GAAP EPS were $87.1 million and $0.73 per share, respectively, both up from the prior-year third quarter. The Progressive team delivered another excellent quarter for both revenue and earnings. Invoice volume grew 18.6% over the prior-year third quarter due to increased productivity from new and existing retailers, which, along with the recent rollout of additional locations, should drive accelerating invoice growth in the fourth quarter. We are encouraged by Progressive's consistently strong results and continue to invest in people and systems to deliver future growth.
The Aaron's business had a challenging quarter with negative same-store revenues and a year-over-year decline in adjusted EBITDA, resulting primarily from weaker collections performance. On a positive note, the team was successful driving customer traffic and sales conversion, leading to a 13.7% increase in revenues written into the portfolio. We are encouraged by the team's ability to generate customer demand in both our store and e-commerce channels, which gives us confidence to continue investing in the Aaron's business. We remain conservatively capitalized with a net debt to adjusted EBITDA ratio of less than half a turn and ended the quarter with available liquidity of over $500 million.
Our strong balance sheet provides us flexibility to continue to invest in our businesses, pursue M&A opportunities and return capital to shareholders. During the quarter, we returned approximately $27 million to our shareholders through share repurchases and our quarterly cash dividend. Now I'll turn the call over to Ryan to discuss the Progressive business.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, John. I'm proud of the team for delivering another outstanding quarter of invoice, revenue and earnings growth, consistent with trends we've been experiencing for the last several years. Revenues were a record $529 million in the third quarter, up 20.1% as compared to the third quarter of 2018. Revenue growth was generated by the year-over-year increase in the lease portfolio resulting from consistently strong growth in invoice volume over the last several quarters.
In the third quarter, invoice grew 18.6% to a record of $421 million driven by 20.5% increase in invoice per active door. The significant increase in invoice per active door was due to strong year-over-year increases in lease transactions per location in nearly every vertical, contributing to an all-time high level of productivity across the portfolio. While it is difficult to forecast the timing of invoice volume exactly, we're very pleased with our position as we enter the fourth quarter. We are currently experiencing an acceleration in invoice growth as existing partnerships expand and new partnerships continue to ramp.
Our third-quarter active door count was approximately 19,900, down 1.6% from the third quarter of 2018. We expect this metric to shift to positive in the fourth quarter as we begin to comp mattress and mobile reductions from the prior year and as the new retail partner locations we have recently onboarded become active. As previously mentioned, however, we believe door count has become less predictive as a leading indicator of future revenue growth, particularly as our overall mix shifts toward larger footprint locations and e-commerce transactions. EBITDA increased by 21.5% as compared to the same period last year, primarily due to the 20.1% increase in revenues.
On a consistent accounting basis, EBITDA was 11.9% of revenues, an increase of 20 basis points from 11.7% in year-ago period. The EBITDA margin expansion was driven by an increase in gross margin, partially offset by accelerating investments in SG&A to support the growth of new and existing retail partners. Also calculated on a consistent accounting basis, write-offs were 7.7% of revenues in the third quarter of 2019, slightly better than the 7.8% in the year-ago period. As demonstrated by the consistency of this metric, our lease pool performance continues to be strong.
And we expect to end the year well within the annual write-off range we previously provided. I'm excited about the momentum we are carrying into the remainder of the year, and I'm pleased with the significant ongoing effort the team is making toward providing the best possible experience for credit-challenged consumers. I will now turn the call over to Douglas to discuss the Aaron's business third-quarter results.
Douglas Lindsay -- President,Aaron's Business
Thanks, Ryan. You may recall from our second-quarter update the Aaron's business recently launched new marketing and sales programs designed to drive higher customer traffic and conversion to our in-store and e-commerce channels. The marketing initiative reallocated our spend to direct response programs and brand advertising. The sales initiative was a companywide program designed to further develop our team member selling skills and behaviors.
These combined initiatives drove a 13.7% increase in revenues written into the portfolio, which was the highest quarter in several years and resulted in a sharp increase in deliveries to new customers. Included in this growth was a 50% increase in the e-commerce revenues written into the portfolio, which represented approximately 13% of deliveries in the quarter. Because of the success of these initiatives, our recurring per store was higher entering the fourth quarter on a year-over-year basis. While we're pleased with the demand generated from the sales and marketing initiatives, the significant increase in deliveries resulted in insufficient labor capacity to handle the elevated workload in our stores.
This capacity imbalance created a shortfall in collections performance, which had an unfavorable impact on lease revenues and write-offs in the quarter. During the quarter, we addressed this decline by adding collection resources across the system and rebalanced our in-store team members' efforts between sales and collections. We're already seeing our collections performance improve as a result of these actions and believe collections will return to a more normalized level as we exit the fourth quarter. Ultimately, our goal is to find the right balance of delivery and collections performance that will generate consistently profitable growth.
Despite a significant increase in revenues written into the portfolio and higher recurring revenue per store on a year-over-year basis, same-store revenues in the quarter declined 2.9% due to our collections performance. Given these results, we've adjusted our annual same-store revenues outlook from a range of flat to up 2% to a new range of negative 1% to positive 1%. Adjusted EBITDA decreased $7 million or 21.5% compared to the year-ago quarter. Adjusted EBITDA declined primarily due to the negative impact of collections in the quarter, partially offset by the benefit of increased revenue written into the portfolio and expense reductions related to closed stores.
Write-offs were 7.4% of revenues versus 5.4% in the same period last year. The increase in write-offs was primarily driven by operational imbalances created by our new sales initiatives, the closure of 155 stores in 2019 and an increasing mix of e-commerce revenues. Despite some challenges, I'm very encouraged by the progress we're making in the Aaron's business, including the improved delivery activity experienced throughout the quarter. We continue to invest in key strategic initiatives that we believe will improve the customer experience and drive operational efficiencies to enable our associates to focus on the highest value-added activities.
I'll now turn the call over to Steve.
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Thanks, Douglas. On a consolidated basis, revenues for the third quarter of 2019 were $963.8 million, an increase of 8.4% over the same period a year ago when calculated on a basis consistent with the 2019 adoption of ASC 842. Adjusted EBITDA for the company was $87.1 million for the third quarter of this year, compared to $82.5 million for the same period last year, an increase of $4.6 million or 5.6%. Adjusted EBITDA was 9% of revenue in the third quarter of 2019, down slightly from the 9.3% in the third quarter of 2018 on a constant accounting basis.
Diluted EPS on a non-GAAP basis for the quarter increased 5.8% to $0.73 versus $0.69 in the prior-year quarter. Operating expenses decreased approximately $37.3 million. Adjusting operating expenses in the third quarter of 2018 to be consistent with 2019 reporting, operating expenses would have increased $27 million in the third quarter of 2019 compared to the year-ago period. Approximately half of the increase in operating expenses relates to increases in write-offs evenly split between Progressive and the Aaron's business.
The balance relates to increased personnel cost at Progressive and increased personnel and occupancy cost at the Aaron's business related to the acquisition of franchised stores in 2018. These increases in the Aaron's business were partially offset by the closure of underperforming stores as part of our restructuring actions. During the third quarter, the company reported restructuring cost of $5.5 million, primarily related to changes in estimates made to prior quarter restructuring activities, as well as the planned closure of an administrative building. Cash generated from operating activities was $351 million for the nine months ended September 30, 2019.
And we ended the quarter with $150 million in cash, compared to $15 million at the end of 2018. During the quarter, we repurchased 399,000 shares of the company's common stock at an average price of $62.61 per share, returning approximately $27 million to our shareholders through these repurchases and our quarterly cash dividend. We remain conservatively capitalized and ended the third quarter with available liquidity of $537 million and a net debt to adjusted EBITDA ratio of less than half a turn. You will note that we have narrowed our outlook for 2019, primarily in response to the shortfall in the third quarter, resulting in a revised 2019 non-GAAP EPS outlook of $3.75 to $3.85, compared to our previous outlook of $3.85 to $4.
Finally, as you may have seen in our Form 10-Q filed earlier this afternoon, we have updated our disclosure relating to the CIDs received from the FTC in July 2018 and April 2019. Because we are actively engaged with the FTC staff on these matters, we are not able to comment on them any further at this time. I'll now turn the call over to the operator, who will assist with the question-and-answer period.
Questions & Answers:
Operator
[Operator instructions] And our first question comes from Brad Thomas of KeyBanc Capital Markets. Please go ahead.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Hi. Good afternoon, guys. A couple of questions, if I could. Maybe I'll start with Progressive.
I guess could you maybe help us think through the adjustment that you're making here on the full-year guidance revenue for Progressive and maybe talk a little bit about why you are lowering the high end of the range and whether that's coming from partners that are maybe more mature versus what you're saying out of some of your younger partnerships?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Happy to, Brad. Thanks for the question. Ryan here. We're obviously happy with the strong rate of growth in the quarter.
That said, it is difficult to get the timing of invoice exactly right, when an opportunity will launch and the pace at which it will grow. It shifted a bit later in the year than we had anticipated when we revised the outlook in the second quarter. But said, we've had some very large launches, and it takes time to integrate the program into the store environment and drive awareness among retail sales associates and customers. We're very excited about the potential there, as well as the ongoing productivity from existing doors.
It's both of those, both existing and new locations that are contributing to the acceleration and invoice growth that I mentioned in the prepared remarks that we're seeing currently in the fourth quarter and that leave us very optimistic about our ability to drive strong growth into the future. But that's essentially what it is. It's just getting the timing of invoice nailed down and reflecting that in the range of outlook that we provided. But we remain very optimistic about where we sit.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Gotcha. And if I could ask a follow-up question around Aaron's business and how you all are thinking about profitability there. I guess the first part of that question would be, Douglas, can you help us think about maybe when we look at margins and profitability in the quarter, how much of the misstep this quarter is maybe execution of some of the initiatives you have rolling out versus the end market being a bit more challenging today?
Douglas Lindsay -- President,Aaron's Business
Sure, Brad. I mean I would say it's all -- if you want to put in execution bucket, I would say that as you know we, rolled out a new sales and marketing initiative. That initiative drove a lot more demand into our stores than we had anticipated. We had 14% of revenue written into the portfolio, which is a very large number and also a big delivery number relative to where we've been.
And we put pressure on our infrastructure in doing that. And so as we think about the quarter, we feel like we've rebounded from that. As I said in my prepared remarks, we've had an offsetting impact on collections that we felt in the quarter. But we have been trying to get the business back in balance, both collecting and delivering, which we believe we're seeing signs of and have seen evidence of in the last few weeks.
So we feel good about the outlook. We don't think we'll fully recover until the end of the fourth quarter and get back to normalized collections. And the outlook that we've put in place is really reflective of that. It's reflective of getting back in balance through the end of the year and putting through some cost savings that we've put in as well.
So we feel like this all on us. The good news is we've really broken through and found a way to convert the traffic that's coming into our stores and found more productive ways to go acquire the customer. The bad news is it had a short-term impact on collections, which we are reacting to right now. So in terms of external impact, I would say there's nothing there.
It's all really internal.
John Robinson -- President and Chief Executive Officer
And Brad, this is John Robinson. I would echo what Douglas said. We've -- you've been following us for a while and know that pulling levers to drive traffic and conversion have been something we've struggled with over the last few years. So I'm really pleased with Douglas and the team for finding that lever in the third quarter.
But as Douglas said, these things -- these changes are difficult or challenging to do them at scale, can be a little choppy, and that's what we experienced. But generally really pleased with their ability to do that. Now we've got to just find that right balance. And over time, the business has gotten better.
But change is not always linear, and we just got to keep working hard and really remain optimistic. But this quarter was just a little choppy.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Gotcha. Thank you. I'll turn it over.
Operator
Our next question comes from John Baugh of Stifel. Please go ahead.
John Baugh -- Stifel Financial Corp. -- Analyst
Thank you. Good evening. I'll jump right in. The increase there in this core business of written.
I noticed the customer count there was down 2.6% still year over year, and I know you closed some stores. But could you sort of, I don't know, back to the old BOR or give us a sense for what this means, if not for this quarter, maybe ensuing quarters in terms of the comp or the pace of that business assuming collections gets back?
Douglas Lindsay -- President,Aaron's Business
Sure, John. This is Douglas. So yes, customer count is down 2.9%. I think that's best number since Q4 of 2016.
So it's moving in the right direction. As you know, that number kind of builds upon itself and the portfolio business. The reason it's starting to move in the right direction is we added high -- or low single digit into the portfolio in terms of deliveries this quarter, and so it begins to move in the right direction. I stated in my prepared remarks, when you not just look at customers but you look at the value of the portfolio on a per store basis year over year, at the end of Q3, we were actually up relative to last year, which is a very good leading indicator to where same-store revenues can be.
If you're up in the dollar amount year over year for the same quarter, you just need to collect the money. What happened unfortunately in this quarter is we didn't collect the money, and therefore, we could not book the lease revenue in full, which caused the decline in comp store revenues of 2.9%. I fully believe that when we get our comps back in line and we begin to build on the portfolio and really leverage everything we've learned from our sales initiatives, that has really good outlook for the future as we go forward. We did, however, lower our comp guidance for this year, and that is reflective of the 2.9% decrease we're seeing and the fact that we probably will not get back totally in line with collections until the end of the fourth quarter.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. And then is there a way to parse out the weighting of the write-offs being higher between the new store program, the store closures and the e-commerce?
Douglas Lindsay -- President,Aaron's Business
Yeah. I think as I mentioned on our last call, we are expecting the new normal to be higher than it's been historically. That's due to a number of things. E-comm has just become a bigger part of the business and there's more new customers in the e-comm.
The promotional strategy and deals that we're originating on Sunday business is driving more new customers. So it's naturally of a higher charge-off rate. And I think I said in our prepared remarks or at least in the Q&A last quarter that would be the case. On top of that, we also experienced a temporary increase from the closed merge of these 155 stores we did in the last nine months.
That should start to settle out by the end of the year. On top of that, we've also -- this is the new piece. This quarter, we've also introduced this new marketing and sales training, which has caused us to slip back a bit in collections, but we also believe that will normalize by the end of the year. So what I would think in terms of outlook on write-offs is closed merge stores normalizing by the end of the year, the sales and marketing initiative normalizing by the end of the year, and then you're left with just a higher instance of new customers and mix of e-comm as we move forward.
John Baugh -- Stifel Financial Corp. -- Analyst
So with that, the latter two, if we settle back to a more normalized loss, that's going to -- any range you want to give or -- because I guess it would still be higher given new customer percentage and e-commerce percentage.
Douglas Lindsay -- President,Aaron's Business
Yeah. I think we're going to put that in our guidance for next year. But if you look back to the comments we've made previously on our calls, I think we've kind of guided to higher new normalized levels of charge-offs.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. And last one really quickly. I guess for Ryan, I think you gave, well, the charge-off number but I did not see or hear debt expense. And was that in line?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Bad debt was 12 -- I didn't give it in the prepared remarks. Bad debt was 12.9 as a percent of gross revenue versus 12.7 last year. So again, very consistent with kind of year-over-year levels, and these are similar ranges that we provided previously for lease pool performance. So pleased with where we sit there.
John Baugh -- Stifel Financial Corp. -- Analyst
And then finally, will we get some kind of 2020 color on the Progressive in terms of how the new accounts -- any preliminary thoughts around how we see Best Buy and Lowe's, to be specific, impacting next year? Thank you.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
I fully expect that will be in our 2020 outlook, but nothing more on that now, John.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. Thank you. Good luck.
Operator
Our next question comes from Jason Haas of Bank of America Merrill Lynch. Please go ahead.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great. Thanks for taking my question. I wanted to ask about how you're thinking about Progressive EBITDA margins as the business mix shifts to some of these larger retail partners? I know you won't speak to any specific retail partner, but just generally if you could talk about the puts and takes of kind of these larger partners, that would be great.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Sure. So happy to. So we've previously provided a sort of goalpost on expected profitability for the business in the context of an EBITDA range that we said should be between 11% and 13% on a year. It's an annual guide that we provided goalposts in the past.
And we'll obviously be well within that this year, trending toward the higher end of that range and expect to be able to continue to deliver performance within that range going forward. That's true for the business overall as we think about both the existing -- the profitability profile and the existing book, as well as how that grows over time.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great. And then as a follow-up, jumping over to the Aaron's business. Could you talk about what's needed to get write-offs kind of back in line with a level that you're more comfortable with? Is there a need for any sort of investment or -- whether it's opex or anything like that, additional labor hours to kind of get that number back in line? Or is it more just changing, I guess, how you're managing the stores and operations?
Douglas Lindsay -- President,Aaron's Business
Yeah. It's Doug. Thank you for asking the question. So we're again really proud of the team for driving such growth.
It was a huge effort. We trained thousands of people and it was a big effort on our part to do that. The big opportunity we saw there was in conversion. We have the customer traffic coming into our store.
We just need to be more proficient and disciplined about our sales process to convert that traffic. And I think we proved to ourselves not only we could drive more traffic, but we can convert that traffic. And unfortunately, it put some strain on the system. We're now in correction mode.
And what I would expect is collections comes back to normalized levels, but there will be an offset on deliveries. And we just need to balance that. It's really an iterative process to figure out what the right mix is of collection and demand generation in our stores when you have a finite labor source in the stores. We had really good pilots when we first rolled this thing out, and we were able to balance.
And we just need to go back to the disciplines that we put in place in order to do that. Long term, I see a stabilized collections returning and sustained delivery growth in the business, which is really exciting. What we're doing today is we're actually just trying to get more proficient in training and performance management with the staff we have. We have a number of stores out there that are both driving high deliveries and collecting at the same level they've collected in the past.
And we're learning from them. And we're really working with our stores that are only doing one of the two things well to try to get them back in balance. We will selectively add labor if necessary, but that's not our first choice. We think there's a lot of opportunity just in our practices and management oversight and accountability.
And ultimately, long term, a lot of what we've been talking about to you guys over the last few years flows into this, which is our business transformation. What we're trying to do with that and a number of things we're beginning to roll out is take labor and task out of the stores so our stores can focus on selling culture. And that's everything from how do we sign up the customer, how do we decision the customer, how do we speak to the customer going forward and ultimately service the customer's account. If we can make that more efficient for the customer, we can free up time to get to do these conversion opportunities and do both collect and deliver very well.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Great. That makes sense. Thank you.
Operator
Our next question comes from Anthony Chukumba of Loop Capital. Please go ahead.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Thanks for taking my questions. So my first question, just kind of a follow-up to the questions you just answered. So it sounds like -- I just want to make sure I understand this. I mean you put in this new sales and marketing training.
It sounds like your store employees were focusing probably a little bit too much on -- or had to -- clearly, conversion got better. They suddenly had to make a lot more deliveries that they had to make. There's a finite number of hours. So it shifted some of time that they would have spent on collections.
So first of all, I just want to make sure I understand that right. And then second off, wouldn't that seem to imply that you should be more aggressive on centralized collections, which I know is something that you've tested with some of your concept stores?
Douglas Lindsay -- President,Aaron's Business
Yeah. Anthony, first of all, the way you articulated it is exactly right. We just put a lot of pressure on the finite resources we had in our stores. Some were able to do it because we have some super store managers and store employees and others weren't.
You're absolutely right. Centralized collections is one opportunity. Other opportunities are just making it easier for our people and our customers to transact with us, whether it'd be autopay or -- which is recurring payments, or just making -- having a better contact strategy with our customer, taking labor out of the model. We do that.
In terms of centralized collections, we continue to test that. We have it in 20 stores and are continuing down the road. We believe that's a huge opportunity. And one thing we've learned through the processes of centralizing collections is we can build platforms that even before centralizing the labor, we can leverage in our stores to be more efficient in what we do.
So that's absolutely on our road map and something we're working on.
Anthony Chukumba -- Loop Capital Markets -- Analyst
OK. That's helpful. And then just in terms of follow-up, once again it's a follow-up from an earlier question. So in terms of Progressive going forward, I know that the long -- the EBITDA margin guidance has always been sort of in that 11% to 13% range.
But given the volume that you're going to be adding from these sort of large partners and understanding probably the gross margin will be lower because these are generally higher-credit customers that are going to do more [Inaudible] same as cash, but I would just think with the volume that you're going to be picking up, you would sort of leverage some Progressive SG&A. And thus, the EBITDA margin would improve over time. So I guess I was just a little surprised by 11% to 13% kind of long-term guide. So I just want to make sure I understood that.
And if it is really kind of 11% to 13%, why wouldn't it be higher given the leverage of adding these volumes on these large partners?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks for the question, Anthony. We continue to believe that this is a very large underserved market. And as long as that holds true, our bias will be toward optimizing for growth while maintaining profitability rather than profit harvesting. And I think there are a lot of opportunities yet to be tackled in the market that we can invest in pursuing.
And I think our team has done an excellent job of doing that. If you look at our offering to consumers and look at the pace at which it has evolved over the recent periods, we've invested a lot in our systems and our scalability and our field teams servicing our partner relationships and our product and technology teams. We've just done a tremendous amount to help prepare this business to scale. And I'm pleased that growth is what we're seeing and scaling as a result of all that investment.
And as long as that continues to be true, I think our bias will be toward sustained profitability as we grow rather than trying to maximize profitability in the current period. That's how we think about it.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. Sorry, just one left clarification on that. So is it safe to say, look, incremental margins on these new large partners are going to be above the 11% to 13%, but you're going to take that and reinvest that in terms of trying to, like you said, optimize for growth and try to pick up more white whales? Is that a fair way to think about it?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
No, I wouldn't say that. I would just say across the portfolio, we've targeted 11% to 13% EBITDA margins. And our bias will be to continue to invest in the business as we pursue this very large underserved market. But we don't think about that specific to any one opportunity.
Just globally, we think about attempting to maintain profitability while pursuing a very large opportunity that remains.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's very helpful. Thank you.
Operator
Our next question comes from Kyle Joseph of Jefferies. Please go ahead.
Kyle Joseph -- Jefferies -- Analyst
Afternoon, guys. Thanks very much for taking my questions. I wanted -- it looked like you had some pipeline conversion costs at the Progressive segment in the quarter. Can you give us any sense of the size of those? And then the second part of the question would be, what's the lag between revenues from new partnerships versus the upfront expenses in terms of timing?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yeah. SG&A grew by about 40 bps year over year, which you can think about as being reflective of the investment we've made and the pipeline and growing our existing relationships, as well as those new relationships. And then as we've discussed in the past, just by definition, all of that investment in product and technology and getting our teams out in the field to support those retailers and their retail associates proceeds invoice volume. So it's necessarily front-loaded as we think about rolling out those opportunities and then growing them over time.
And so invoice and revenue will consequently always follow initial investment in those launches.
Kyle Joseph -- Jefferies -- Analyst
Got it. And then just talking about Progressive credit, Ryan, I know you said you guys are well within sort of your field goal -- or goalpost, I apologize. But given the pipeline and new conversions, can you give us a sense for your long-term outlook for credit with these new partnerships? Is there any sort of potential for refining -- I know you guys are refining underwriting every day, but kind of refining other areas in terms of underwriting?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Well, we have no current plans to revise the goalpost as we sit here today. Again, we're pleased with how the pools are performing and feel good about delivering performance well within those goalposts as we look to the full year 2019 results. And again, our team -- we've got a large team of folks working very hard at constantly evolving our decisioning algorithms. I think they're doing a phenomenal job and doing it in a very complex environment with ongoing shifts in mix across the portfolio.
And I think their efforts -- the success of their efforts are evidenced in the consistency of those lease pool performance metrics, write-offs and bad debt expense.
Kyle Joseph -- Jefferies -- Analyst
And one last from me if you don't mind. Given the Progressive growth and the new partnerships you guys have landed, and this is kind of a longer-term question, I'm just wondering how you guys are thinking about merchandise returns over time and ultimately what you're going to do with all that merchandise just given the growth and the size that Progressive has become.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Over the years, it's been well refined that reverse logistics process, credit to the operations team that manages that so well. Look, we've -- these verticals that we've recently had launches in are verticals that we've done business in for many years. We've got quite a bit of experience in doing business in all the verticals we're currently growing our business in. And that's sort of incorporated into the processes we have established in the field for reverse logistics.
But we don't expect any material departure from the trends we're seeing there as we look to the growth of the opportunities that we've recently launched. Kind of business as usual as far as that goes. And again, testament to the team for managing that well.
Kyle Joseph -- Jefferies -- Analyst
Got it. Thanks very much for answering my question.
Operator
Our next question comes from Bill Chappell of SunTrust. Please go ahead.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Thanks. Good afternoon. Douglas, on the store issue, just trying to understand maybe when you recognized it intra-quarter when you started to put, I guess, a correction plan in place and what signs you've had that things are starting to turn and give you confidence that it will be kind of more normalized by, I guess, 60 days from now by calendar year-end.
Douglas Lindsay -- President,Aaron's Business
Sure. I'll just give you a little bit of a time line. So we began to train our stores, call it, early May and finished up at the end of June across 1,000-some-odd stores and thousands of employees. We began seeing a lift in revenue in July and August.
Towards the end of July, we started seeing some softening in collections. We had seen some of this in our pilot early on, but it had normalized over time. So we thought it was just the normal pattern that we're seeing in our pilot that's normalizing over time. In August, when we realized it was not normalizing as the pilot had, we began applying more resources to it in the form of regional account people who were drilling down, dealing with underperforming stores.
We had already put a framework in place to start dealing with stores that had gone out of the lines from the beginning of the project forward. But we just needed to apply more resources. We also applied more overtime and some more labor into the stores. We went full out with our sort of rebalancing initiative toward the end of the quarter, and I would say -- I'm sorry, toward the beginning of October, end of the quarter, beginning of October.
In October, we began to see some improvement in collections, which is carried over into the first week of November. And that's what gives us confidence to say that we're moving in the right direction.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. And then, Ryan, on the Progressive side, now that you have expanded, I guess, to sizable customers this year, I mean, does that change the velocity of the pipeline, I mean, in terms of does that -- others that are testing, others that are looking, do they now have kind of two proof of concepts or just, hey, their closest competitor is doing it, maybe we should do it, too? Or is it really still a case-by-case basis?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Good question. We've had what we consider to be a strong marquee roster of partners for quite some time now. We're very proud of the relationships that we developed over the years. And it's nice to add these to that distinguished list of retailers.
I think it's an evolution. We've seen a bit of a virtuous cycle as we've continued to onboard very large partners and they have spoken about the results that together we've driven in the business. I think it's definitely helped, so as you say, increase the velocity of the pipeline, increase the scale, if you will, for sort of future conversations and pipeline conversion. Obviously, those -- the ones that we recently talked about have been very significant additions to our platform.
And we're very optimistic about the multiyear growth profile those represent for the business. We're also excited about the other opportunities that are in the pipeline. You heard -- I mentioned it previously. But it is a very large underserved market, and it is a very competitive market that we compete in for that opportunity.
That said, we have opportunities that are still in the pipeline and are progressing through it. And the team is working hard to convert them. And I'm pleased with the progress they're making.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. Thank you.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to John Robinson for any closing remarks.
John Robinson -- President and Chief Executive Officer
Thank you. I hope that you come away from today's call with the same optimism we have about the future prospects for our business. And I'd like to thank our associates, retail partners and franchisees for their dedication to our mission of providing high-quality products to our customers. Thank you very much for joining us today.
Operator
[Operator signoff]
Duration: 46 minutes
Call participants:
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
John Robinson -- President and Chief Executive Officer
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Douglas Lindsay -- President,Aaron's Business
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Brad Thomas -- KeyBanc Capital Markets -- Analyst
John Baugh -- Stifel Financial Corp. -- Analyst
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Anthony Chukumba -- Loop Capital Markets -- Analyst
Kyle Joseph -- Jefferies -- Analyst
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's (NYSE: AAN) Q3 2019 Earnings Call Nov 04, 2019, 5:00 p.m. Operator [Operator signoff] Duration: 46 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President,Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Kyle Joseph -- Jefferies -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We expect this metric to shift to positive in the fourth quarter as we begin to comp mattress and mobile reductions from the prior year and as the new retail partner locations we have recently onboarded become active.
|
Operator [Operator signoff] Duration: 46 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President,Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Kyle Joseph -- Jefferies -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q3 2019 Earnings Call Nov 04, 2019, 5:00 p.m. Welcome to the Aaron's, Inc. third-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 46 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President,Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Kyle Joseph -- Jefferies -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q3 2019 Earnings Call Nov 04, 2019, 5:00 p.m. Welcome to the Aaron's, Inc. third-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 46 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President,Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Kyle Joseph -- Jefferies -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q3 2019 Earnings Call Nov 04, 2019, 5:00 p.m. I stated in my prepared remarks, when you not just look at customers but you look at the value of the portfolio on a per store basis year over year, at the end of Q3, we were actually up relative to last year, which is a very good leading indicator to where same-store revenues can be.
|
8985.0
|
2019-11-04 00:00:00 UTC
|
IWM, AAN, FR, TDOC: Large Outflows Detected at ETF
|
AAN
|
https://www.nasdaq.com/articles/iwm-aan-fr-tdoc%3A-large-outflows-detected-at-etf-2019-11-04
|
nan
|
nan
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 ETF (Symbol: IWM) where we have detected an approximate $47.4 million dollar outflow -- that's a 0.1% decrease week over week (from 280,350,000 to 280,050,000). Among the largest underlying components of IWM, in trading today Aaron's Inc (Symbol: AAN) is off about 0.7%, First Industrial Realty Trust Inc (Symbol: FR) is up about 0.3%, and Teladoc Health Inc (Symbol: TDOC) is lower by about 0.9%. For a complete list of holdings, visit the IWM Holdings page » The chart below shows the one year price performance of IWM, versus its 200 day moving average:
Looking at the chart above, IWM's low point in its 52 week range is $125.81 per share, with $161.11 as the 52 week high point — that compares with a last trade of $158.77. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among the largest underlying components of IWM, in trading today Aaron's Inc (Symbol: AAN) is off about 0.7%, First Industrial Realty Trust Inc (Symbol: FR) is up about 0.3%, and Teladoc Health Inc (Symbol: TDOC) is lower by about 0.9%. For a complete list of holdings, visit the IWM Holdings page » The chart below shows the one year price performance of IWM, versus its 200 day moving average: Looking at the chart above, IWM's low point in its 52 week range is $125.81 per share, with $161.11 as the 52 week high point — that compares with a last trade of $158.77. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
|
Among the largest underlying components of IWM, in trading today Aaron's Inc (Symbol: AAN) is off about 0.7%, First Industrial Realty Trust Inc (Symbol: FR) is up about 0.3%, and Teladoc Health Inc (Symbol: TDOC) is lower by about 0.9%. For a complete list of holdings, visit the IWM Holdings page » The chart below shows the one year price performance of IWM, versus its 200 day moving average: Looking at the chart above, IWM's low point in its 52 week range is $125.81 per share, with $161.11 as the 52 week high point — that compares with a last trade of $158.77. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
|
Among the largest underlying components of IWM, in trading today Aaron's Inc (Symbol: AAN) is off about 0.7%, First Industrial Realty Trust Inc (Symbol: FR) is up about 0.3%, and Teladoc Health Inc (Symbol: TDOC) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 ETF (Symbol: IWM) where we have detected an approximate $47.4 million dollar outflow -- that's a 0.1% decrease week over week (from 280,350,000 to 280,050,000). For a complete list of holdings, visit the IWM Holdings page » The chart below shows the one year price performance of IWM, versus its 200 day moving average: Looking at the chart above, IWM's low point in its 52 week range is $125.81 per share, with $161.11 as the 52 week high point — that compares with a last trade of $158.77.
|
Among the largest underlying components of IWM, in trading today Aaron's Inc (Symbol: AAN) is off about 0.7%, First Industrial Realty Trust Inc (Symbol: FR) is up about 0.3%, and Teladoc Health Inc (Symbol: TDOC) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 ETF (Symbol: IWM) where we have detected an approximate $47.4 million dollar outflow -- that's a 0.1% decrease week over week (from 280,350,000 to 280,050,000). For a complete list of holdings, visit the IWM Holdings page » The chart below shows the one year price performance of IWM, versus its 200 day moving average: Looking at the chart above, IWM's low point in its 52 week range is $125.81 per share, with $161.11 as the 52 week high point — that compares with a last trade of $158.77.
|
8986.0
|
2019-10-23 00:00:00 UTC
|
Aaron's Reaches Analyst Target Price
|
AAN
|
https://www.nasdaq.com/articles/aarons-reaches-analyst-target-price-2019-10-23
|
nan
|
nan
|
In recent trading, shares of Aaron's Inc (Symbol: AAN) have crossed above the average analyst 12-month target price of $75.89, changing hands for $77.07/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 9 different analyst targets contributing to that average for Aaron's Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $61.00. And then on the other side of the spectrum one analyst has a target as high as $88.00. The standard deviation is $7.975.
But the whole reason to look at the average AAN price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAN crossing above that average target price of $75.89/share, investors in AAN have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.89 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Aaron's Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAN — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In recent trading, shares of Aaron's Inc (Symbol: AAN) have crossed above the average analyst 12-month target price of $75.89, changing hands for $77.07/share. But the whole reason to look at the average AAN price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAN crossing above that average target price of $75.89/share, investors in AAN have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.89 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
In recent trading, shares of Aaron's Inc (Symbol: AAN) have crossed above the average analyst 12-month target price of $75.89, changing hands for $77.07/share. But the whole reason to look at the average AAN price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAN crossing above that average target price of $75.89/share, investors in AAN have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.89 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
And so with AAN crossing above that average target price of $75.89/share, investors in AAN have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.89 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Aaron's Inc (Symbol: AAN) have crossed above the average analyst 12-month target price of $75.89, changing hands for $77.07/share. But the whole reason to look at the average AAN price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of Aaron's Inc (Symbol: AAN) have crossed above the average analyst 12-month target price of $75.89, changing hands for $77.07/share. But the whole reason to look at the average AAN price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAN crossing above that average target price of $75.89/share, investors in AAN have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $75.89 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
8987.0
|
2019-09-23 00:00:00 UTC
|
AAN May 2020 Options Begin Trading
|
AAN
|
https://www.nasdaq.com/articles/aan-may-2020-options-begin-trading-2019-09-23
|
nan
|
nan
|
Investors in Aaron's Inc (Symbol: AAN) saw new options begin trading today, for the May 2020 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 235 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new May 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $60.00 strike price has a current bid of $5.20. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $54.80 (before broker commissions). To an investor already interested in purchasing shares of AAN, that could represent an attractive alternative to paying $60.31/share today.
Because the $60.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.67% return on the cash commitment, or 13.46% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aaron's Inc, and highlighting in green where the $60.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $4.00. If an investor was to purchase shares of AAN stock at the current price level of $60.31/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 14.41% if the stock gets called away at the May 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red:
Considering the fact that the $65.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.63% boost of extra return to the investor, or 10.30% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 40%, while the implied volatility in the call contract example is 38%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $60.31) to be 32%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options begin trading today, for the May 2020 expiration.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options begin trading today, for the May 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new May 2020 contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options begin trading today, for the May 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new May 2020 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new May 2020 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options begin trading today, for the May 2020 expiration.
|
8988.0
|
2019-09-17 00:00:00 UTC
|
Peek Under The Hood: XMMO Has 10% Upside
|
AAN
|
https://www.nasdaq.com/articles/peek-under-the-hood%3A-xmmo-has-10-upside-2019-09-17
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P MidCap Momentum ETF (Symbol: XMMO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $64.21 per unit.
With XMMO trading at a recent price near $58.63 per unit, that means that analysts see 9.52% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XMMO's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), American Eagle Outfitters, Inc. (Symbol: AEO), and Charles River Laboratories International Inc. (Symbol: CRL). Although AAN has traded at a recent price of $60.91/share, the average analyst target is 18.82% higher at $72.38/share. Similarly, AEO has 15.19% upside from the recent share price of $17.00 if the average analyst target price of $19.58/share is reached, and analysts on average are expecting CRL to reach a target price of $153.00/share, which is 13.92% above the recent price of $134.30. Below is a twelve month price history chart comparing the stock performance of AAN, AEO, and CRL:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Although AAN has traded at a recent price of $60.91/share, the average analyst target is 18.82% higher at $72.38/share. Below is a twelve month price history chart comparing the stock performance of AAN, AEO, and CRL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XMMO's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), American Eagle Outfitters, Inc. (Symbol: AEO), and Charles River Laboratories International Inc. (Symbol: CRL).
|
Three of XMMO's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), American Eagle Outfitters, Inc. (Symbol: AEO), and Charles River Laboratories International Inc. (Symbol: CRL). Although AAN has traded at a recent price of $60.91/share, the average analyst target is 18.82% higher at $72.38/share. Below is a twelve month price history chart comparing the stock performance of AAN, AEO, and CRL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Below is a twelve month price history chart comparing the stock performance of AAN, AEO, and CRL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XMMO's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), American Eagle Outfitters, Inc. (Symbol: AEO), and Charles River Laboratories International Inc. (Symbol: CRL). Although AAN has traded at a recent price of $60.91/share, the average analyst target is 18.82% higher at $72.38/share.
|
Although AAN has traded at a recent price of $60.91/share, the average analyst target is 18.82% higher at $72.38/share. Three of XMMO's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), American Eagle Outfitters, Inc. (Symbol: AEO), and Charles River Laboratories International Inc. (Symbol: CRL). Below is a twelve month price history chart comparing the stock performance of AAN, AEO, and CRL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
8989.0
|
2019-09-16 00:00:00 UTC
|
Ex-Dividend Reminder: J&J Snack Foods, Best Buy and Aaron's
|
AAN
|
https://www.nasdaq.com/articles/ex-dividend-reminder%3A-jj-snack-foods-best-buy-and-aarons-2019-09-16
|
nan
|
nan
|
Looking at the universe of stocks we cover at Dividend Channel, on 9/18/19, J&J Snack Foods Corp. (Symbol: JJSF), Best Buy Inc (Symbol: BBY), and Aaron's Inc (Symbol: AAN) will all trade ex-dividend for their respective upcoming dividends. J&J Snack Foods Corp. will pay its quarterly dividend of $0.50 on 10/3/19, Best Buy Inc will pay its quarterly dividend of $0.50 on 10/10/19, and Aaron's Inc will pay its quarterly dividend of $0.035 on 10/4/19. As a percentage of JJSF's recent stock price of $189.40, this dividend works out to approximately 0.26%, so look for shares of J&J Snack Foods Corp. to trade 0.26% lower — all else being equal — when JJSF shares open for trading on 9/18/19. Similarly, investors should look for BBY to open 0.74% lower in price and for AAN to open 0.06% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. J&J Snack Foods Corp. (Symbol: JJSF) is a "future dividend aristocrats contender," with 15+ years of increases.
Below are dividend history charts for JJSF, BBY, and AAN, showing historical dividends prior to the most recent ones declared.
J&J Snack Foods Corp. (Symbol: JJSF):
Best Buy Inc (Symbol: BBY):
Aaron's Inc (Symbol: AAN):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.06% for J&J Snack Foods Corp., 2.96% for Best Buy Inc, and 0.23% for Aaron's Inc.
In Monday trading, J&J Snack Foods Corp. shares are currently up about 0.1%, Best Buy Inc shares are up about 0.1%, and Aaron's Inc shares are down about 1.3% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at the universe of stocks we cover at Dividend Channel, on 9/18/19, J&J Snack Foods Corp. (Symbol: JJSF), Best Buy Inc (Symbol: BBY), and Aaron's Inc (Symbol: AAN) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for BBY to open 0.74% lower in price and for AAN to open 0.06% lower, all else being equal. Below are dividend history charts for JJSF, BBY, and AAN, showing historical dividends prior to the most recent ones declared.
|
Looking at the universe of stocks we cover at Dividend Channel, on 9/18/19, J&J Snack Foods Corp. (Symbol: JJSF), Best Buy Inc (Symbol: BBY), and Aaron's Inc (Symbol: AAN) will all trade ex-dividend for their respective upcoming dividends. J&J Snack Foods Corp. (Symbol: JJSF): Best Buy Inc (Symbol: BBY): Aaron's Inc (Symbol: AAN): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for BBY to open 0.74% lower in price and for AAN to open 0.06% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 9/18/19, J&J Snack Foods Corp. (Symbol: JJSF), Best Buy Inc (Symbol: BBY), and Aaron's Inc (Symbol: AAN) will all trade ex-dividend for their respective upcoming dividends. J&J Snack Foods Corp. (Symbol: JJSF): Best Buy Inc (Symbol: BBY): Aaron's Inc (Symbol: AAN): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for BBY to open 0.74% lower in price and for AAN to open 0.06% lower, all else being equal.
|
Looking at the universe of stocks we cover at Dividend Channel, on 9/18/19, J&J Snack Foods Corp. (Symbol: JJSF), Best Buy Inc (Symbol: BBY), and Aaron's Inc (Symbol: AAN) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for BBY to open 0.74% lower in price and for AAN to open 0.06% lower, all else being equal. Below are dividend history charts for JJSF, BBY, and AAN, showing historical dividends prior to the most recent ones declared.
|
8990.0
|
2019-07-26 00:00:00 UTC
|
Aaron's (AAN) Q2 2019 Earnings Call Transcript
|
AAN
|
https://www.nasdaq.com/articles/aarons-aan-q2-2019-earnings-call-transcript-2019-07-26
|
nan
|
nan
|
Image source: The Motley Fool.
Aaron's (NYSE: AAN)
Q2 2019 Earnings Call
Jul 25, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. My name is Kate and I will be your conference coordinator. At this time, I would like to welcome everyone to the Aaron's Inc. second-quarter 2019earnings conference call
[Operator instructions]. I will now turn the call over to Mr. Michael Dickerson, vice president of corporate communications and investor relations for Aaron's, Inc. You may begin your conference.
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
Thank you and good morning, everyone. Welcome to the Aaron's, Inc. second-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc.
president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations. Many of you have already seen a copy of our earnings release issued this morning. For those of you who have not, it is available on the investor relations section of our website at aarons.com.
10 stocks we like better than Aaron's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Aaron's wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
During this call, certain statements we make will be forward-looking. I want to call your attention to our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings release. The Safe Harbor provision identifies risks that may cause the actual results to differ materially from the content of our forward-looking statements. Also please see our Form 10-K for the year ended December 31, 2018, and subsequent filings with the SEC for a description of the risks related to our business that may cause the actual results to differ materially from our forward-looking statements.
Listeners are cautioned not to place undue emphasis on forward-looking statements and we undertake no obligation to update any such statements. On today's call, we will be referring to certain non-GAAP financial measures including EBITDA and adjusted EBITDA, non-GAAP net earnings, and non-GAAP EPS, which have been adjusted for certain items which may affect the comparability of our performance with other companies. These non-GAAP measures are detailed in the reconciliation tables included with our earnings release. The company believes that these non-GAAP financial measures provide meaningful insight into the company's operational performance and cash flows and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding the company's ongoing operational performance. Lastly, effective with the first quarter of 2019, the company adopted ASC 842, a new standard related to accounting for leases.
In our press release, we have added some information to the revenue table to provide you a year-over-year comparison on an equivalent basis. Throughout our call today, we'll make comments related to the comparability of certain items with the prior year and have assumed in these comments that the adoption of this new standard was made at the beginning of each period compared. With that, I will now turn the call over to John Robinson.
John Robinson -- President and Chief Executive Officer
Thanks, Mike. And thank you all for joining us today. The strong start to the year we reported in the first quarter continued through the second quarter. On a consolidated basis, we achieved revenue growth of 10.3% over the same quarter in 2018.
This increase is primarily a result of continued strong invoice growth at progressive and the Aaron's business acquisition of franchise locations in 2018, partially offset by the closure of underperforming Aaron's stores in the first half of 2019. Adjusted EBITDA and diluted non-GAAP EPS were 107 million and $0.93 per share, respectively, both up meaningfully from the prior-year second quarter. Progressive's invoice volume grew 20.4% over the prior-year second quarter, an acceleration from the 14.2% growth experienced in the first quarter of 2019. We are encouraged by this accelerating growth and are maintaining our strategy of investing in people and systems to grow existing and new retail partner relationships. The Aaron's business performed well in the quarter despite a lower-than-expected beginning portfolio balance, which put pressure on revenue and earnings. I'm pleased with the work our teams are doing to drive revenue and manage costs, and we're maintaining our previously provided annual outlook for the business.
We remain optimistic about the future of the Aaron's business and continue to invest in initiatives to advance our direct-to-consumer omnichannel strategy. Overall, we remain conservatively capitalized with a net debt to adjusted EBITDA ratio of well below one turn and ended the second quarter with available liquidity of approximately $500 million. Our strong balance sheet provides us flexibility to continue to invest in our business, explore strategic opportunities and return capital to shareholders. During the quarter, we repurchased approximately 243,000 shares of company's common stock, returning approximately $17 million to our shareholders through these repurchases and our quarterly cash dividend. I will now turn the call over to Ryan to discuss progressive's second-quarter results.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Thanks, John. The progressive team delivered a great second quarter, continuing the strong growth and profitability trends we have been experiencing. Revenues were 516 million in the second quarter, up 19.1% as compared to the second quarter of 2018. Revenue growth was driven by a 20.4% increase in invoice volume in the quarter resulting from a 23.4% increase in invoice per active door.
The significant increase in invoice per active door was driven by strong year-over-year increases in lease transactions per door in nearly every vertical. Our second-quarter active door count was approximately 19,800, down 2.5% from the second quarter of 2018. As evidenced by the accelerating growth and total invoice and invoice per active door, we believe door count has become less predictive as a leading indicator of future revenue growth, particularly as our overall mix shifts toward larger footprint and online retailers. EBITDA increased 22.3% as compared to the same period last year primarily due to the 19.1% increase in revenues. On a consistent accounting basis, EBITDA was 13.2% of revenues, an increase of 30 basis points from the 12.9% in year-ago period.
The EBITDA margin expansion was driven by a 130 basis point increase in gross margin resulting primarily from a lower level of 90-day buyout activity. The increase in gross margin was partially offset by accelerating investments in SG&A to support the growth of existing retail partners, as well as future pipeline conversion. Also calculated on a consistent accounting basis, write-offs were 7.6% of revenues in the second quarter of 2019 compared to 7.5% in the year-ago period. As demonstrated by the consistency of this metric, our lease pools continue to perform well and are in line with our expectations.
Our risk team lead by Tanner Barney is doing an excellent job designing and executing decisioning strategies that account for ongoing shifts in portfolio mix while enabling us to deliver results within the target ranges of profitability we provided. I remain excited about the momentum we're carrying into the second half of the year. I'm pleased with the significant effort the team has made toward providing the best possible experience for credit-challenged consumers. I'll now turn the call over to Douglas to discuss the Aaron's business second-quarter results.
Douglas Lindsay -- President of the Aaron's Business
Thanks, Ryan. I'm pleased with the performance of the Aaron's business in the second quarter despite entering the period with a lower portfolio balance than expected. Same store revenues were up 0.1% in the quarter and represent a year-over-year improvement of 190 basis points. Same store revenues have been near flat for four consecutive quarters and we expect this trend to continue for the second half of the year.
In the quarter, we returned to positive year-over-year recurring revenue written into the portfolio including a 68% increase in our e-commerce channel. As a reminder, recurring revenue written into the portfolio is a key indicator of future revenue performance. Revenues increased 1.9% as compared to the second quarter of 2018. Lease revenue increased to 8% as compared to the same quarter last year primarily driven by the franchise stores acquired in 2018.
Lease revenues also benefited from the ongoing investment in our aarons.com platform which continued its strong growth in the second quarter. aarons.com is the key pillar of our omnichannel strategy and continues to attract younger higher-ticket customer who prefers a mobile shopping experience. Adjusted EBITDA decreased 2.7 million or 6.4%, and was 8.9% of revenues versus 9.7% in the year-ago quarter. Adjusted EBITDA declined primarily due to the planned timing of 2019 marketing spend and higher write-offs partially offset by a $3.6 million insurance recovery from hurricane losses incurred in 2017. Write-offs were 5.6% of revenues versus 4% in the same period last year. Contributing to the increase in write-offs was the planned increase in the number and type of promotional offerings, higher ticket leases and the closure of 151 stores in the first half of 2019 and an increasing mix of e-commerce as a percent of revenue. Our first half of 2019 store closures are a continuation of our market repositioning strategy, which includes store merges, relocations and investments in our next generation store concepts.
The impact of store closures on write-offs results primarily from the initial attrition of customers who were transferred to other Aaron's locations. We believe this unfavorable impact on write-offs is temporary and these closures will result in improved net margin performance in the future periods. I'm encouraged with the progress we're making in the Aaron's business including the improved delivery activity experienced in the latter part of the quarter. We believe this improvement is primarily driven by our new direct response marketing programs and a redesigned sales training and incentive plans. We continue to invest in key strategic initiatives to improve the customer experience and drive operational efficiencies.
We're pleased with the progress of these initiatives and we'll continue to evaluate their results as we scale them more broadly. I'll now turn the call over to Steve.
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Thanks, Douglas. Now I'll review some financial highlights for the quarter. On a consolidated basis, revenues for the second quarter of 2019 were 968.1 million, an increase of 10.3% over the same period a year ago when calculated on a basis consistent with the 2019 adoption of ASC 842. Adjusted EBITDA for the company was 107.4 million for the second quarter of this year compared to 97 million for the same period last year, an increase of 10.4 million or 10.7%.
adjusted EBITDA was 11.1% of revenue in the second quarter of 2019 consistent with the second quarter of 2018 on a constant-accounting basis. Diluted EPS on a non-GAAP basis for the quarter increased 10.7% to $0.93 versus $0.84 in the prior-year quarter. Operating expenses decreased approximately 4.7 million. Adjusting operating expenses in the second quarter of 2018 to be consistent with 2019 reporting, operating expenses would have increased 45 million in the second quarter of 2019 compared to the year-ago period.
Approximately half of the increase in operating expenses relates to the acquisition of franchise stores throughout 2018. The balance relates to the incremental write-offs evenly split between progressive and the Aaron's business, the acceleration of Aaron's business planned marketing spent into the second quarter and increased personnel costs at Progressive. During the second quarter, the company closed approximately 70 Aaron store locations as a result of management's strategic review of the existing store portfolio. The company recorded restructuring charges of 18.7 million, primarily consisting of impairment charges associated with the closed stores.
Cash generated from operating activities was 245 million for the six months ended June 30, 2019 and we ended the quarter with 100 million in cash compared to 15 million at the end of 2018. In mid-April, we made a scheduled principal payment on our senior unsecured notes of $60 million. The remaining outstanding balance of our senior unsecured notes is of 120 million, with no additional scheduled principal payments on these notes until April of 2020. During the quarter we repurchased 242,860 shares of the company's common stock for approximately $59.35 per share, returning approximately 17 million to our shareholders through these repurchases and our quarterly cash dividend.
We remain conservatively capitalized and ended the second quarter with available liquidity of $486 million and a net debt to adjusted EBITDA ratio of 0.6 turns. You will note that we've updated our outlook for 2019. We are raising our EPS outlook from a range of $3.65 to $3.85 to an updated range of $3.85 to $4 per share, primarily reflecting the strength in our progressive segment. Year to date we have achieved low double-digit consolidated revenue growth and expect to continue to do so for the balance of the year.
We've increased our adjusted EBITDA outlook for the year, as we expect progressive to continue to achieve high EBITDA growth rates in the second half of 2019. Despite a lower than expected portfolio balance entering the second quarter, we are maintaining the previously provided full-year outlook for the Aaron's business. Overall, we are pleased that we again reported strong consolidated results this quarter. With that, I'll turn the call over to the operator to assist with taking your questions.
Questions & Answers:
Operator
[Operator instructions]. The first question comes from Kyle Joseph of Jefferies. Please go ahead.
Kyle Joseph -- Jefferies -- Analyst
Hey, good morning, guys, and congratulations on a good quarter. I want to just start on the progressive side of the business. Ryan, if you could give us a sense for the rollout with the recently announced partnerships, any color you can provide us with there?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
We're happy with how they're going. We obviously continue to be very proud to partner with all of those folks and excited about what we're accomplishing together. The teams are working hard. We're focused on executing the best we possibly can for them and their stores and for our mutual customers.
I won't comment on them specifically, but we're pleased with where we're at and really excited about the opportunity ahead of us.
Kyle Joseph -- Jefferies -- Analyst
Got it. And then if you can just, I think this question is probably for Steve, just give us a sense for the cash efficiency of the progressive model and how much the business can grow on the existing balance sheet? And then refresh us on your capital allocation plans as well.
Douglas Lindsay -- President of the Aaron's Business
Yeah, I mean that's one of the many beautiful elements of the progressive model, which I assume you're speaking of specifically. The Aaron's business has a great cash efficiency and cash generation as well, but as it relates to progressive and its growth, because of the 12-month lease pools with an average life of seven months, the cash turns over very quickly and has a very efficient cash conversion cycle. So we have -- the progressive business has grown in the last several years in the call it mid-20s and has generated cash. And depending on the timing of the invoice, it could certainly grow in excess of 40% and still sell fund, but then obviously beyond that, one of our strengths is our conservatively capitalized balance sheet and access to liquidity.
So we've got plenty of opportunity and dry powder, if you will, to be able to support growth in excess of that. But at the levels and the size that progressive is, those are some very nice growth rates that it can sell fund.
Kyle Joseph -- Jefferies -- Analyst
That's very helpful. Thanks a lot for answering my questions.
Operator
The next question is from Anthony Chukumba of Loop Capital Markets. Please go ahead.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Good morning. And let me add my congrats on nice quarter as well. So I just had a question, obviously progressive had a great quarter, you have also made sequential acceleration in terms of invoice by per active door growth particularly, including our two-year stack basis. And you raised your guidance, but for progressive EBITDA for the year, which didn't raise your guidance for progressive's revenues for the year.
So I was just trying to sort of reconcile that.
Douglas Lindsay -- President of the Aaron's Business
Yeah, Anthony, this is Steve. I mean, as we talked about in the prepared remarks, we believe and we said we expect low double-digit or consistent year-over-year growth rates in the back half of the year that we achieved in the front half of the year. And we did not, as you noted, tighten or change the revenue range, but we expect to continue the trends that we've been delivering thus far.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's helpful. Thank you.
Operator
The next question is from Brad Thomas of KeyBanc. Please go ahead.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Hey, good morning. Great quarter. I guess I was hoping we could talk a little bit more about the trends in bad debts and write-offs, and maybe we could start with Douglas and then move over to Ryan. If you could talk about what you're seeing in the different business segments and how that's playing out relative to expectations and how if at all your outlook for that line item is changing as we think about the back half of the year?
Douglas Lindsay -- President of the Aaron's Business
It's Douglas. As we mentioned, I believe we mentioned this last call. We've been experiencing elevated write-offs in the last few quarters. It has mainly been driven by our acquisition of new customers.
We talked about our promotional strategy is driving new customers in the door. We've also opened on Sunday on all of our stores now which is attracting a lot more new customers and that e-com, I mean e-com is over 12% of our GAAP written into the portfolio this quarter and that's attracting mainly the new customer. So with all the new customer entering into the each of the pools, we're seeing higher write-offs. We also mention on the call, we're seeing a temporary increase in write-offs due to the closure of 151 stores in the first six months of the year.
And this is just basically we're merging customers from one store into another. And as we move them, we did the best we can to increase the customer service and connectivity with our customer or moving them a longer away from their home to another store. We bake all of this into our underwriting and our decisioning when we close doors, but we do experience higher write-offs when that happens. So we're happy with the ROI on that decision, but we will have a temporary period of increase write-offs.
We expect to have elevated write-offs as we go forward just due to the promotional strategy, the growth in e-commerce and attracting new customers with a higher rate, but that's all reflected in our guidance.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
And so just to be clear, Douglas, do you think that the write-offs probably continue to be higher year over year through the second half?
Douglas Lindsay -- President of the Aaron's Business
Yeah, we would expect, yes, an elevated amount of write-offs even once the merger settle down.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
OK. Great. And, Ryan, could you comment a bit more about how you're thinking about write-offs of bad debts?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yeah, on the same accounting basis write-offs were 7.6 versus 7.5 a year ago, and we didn't -- I don't think we mentioned bad debt as we've changed accounting, but just for information bad debt was flat on the same accounting basis, 10.3% of revenues versus 10.3% last year. I'd say it was, you know, strengthened our decisioning activities, I mentioned that in the prepared remarks and the payment assistance team is doing excellent as well and that combined is delivering very consistent pool performance. We provided that annual range on write-offs of 6 to 8% more well-positioned to end there on the year.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Great. And if I could ask a follow up to you, Ryan, about revenue growth. I know you don't want to break out for sales occurring at specific accounts, but could you maybe give us a little bit more flavor, a little bit more help thinking about where your revenue growth today is coming from and just how we should think about how much is coming from some of these big, large, national accounts versus what you're seeing from some of the regional or smaller players that you work with, particularly in the context of us watching that active door number be down a little bit year over year right now?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Yeah. Sure, happy to. We talked a lot about invoice as a leading indicator of revenue. So the focus on invoice, I mentioned that was driven by strong increases in productivity per door, which we measure as invoice volume per door.
It was actually a record level in the quarter which was great to see. And I did mention, we're seeing that pretty broad base. I think the teams are working hard with our existing partners to grow them and we've obviously benefited from some nice new additions to the portfolio that are also productive and doing well for us. We've just been really focused on trying to help our partners drive more of those opportunities to the top of the funnel and optimize our efforts to convert them through the bottom of the funnel and they're doing great.
Obviously, those larger accounts, given their scale, are driving a big portion of the growth, and we expect that trend to continue, but we're pleased with what we're seeing across the book.
Brad Thomas -- KeyBanc Capital Markets -- Analyst
Great. Thank you so much.
Operator
The next question is from John Baugh of Stifel. Please go ahead.
John Baugh -- Stifel Financial Corp. -- Analyst
Thank you. Good morning. I wanted to get to the store side if I could and is there a better sense, and I guess this is for John or Douglas, where we might sort out in the longer term on store count and are we still retaining sort of a similar 12 months after closure and moving kind of retention rate or is that changing in any way?
John Robinson -- President and Chief Executive Officer
It's John Robinson. In terms of where we think we'll settle out on stores, I think that is an ongoing, kind of evolving process that we continue to evaluate as our kind of omnichannel strategy takes hold. We've been really pleased with the growth in e-com and the ability to serve a broader market with that in potentially fewer stores. We certainly think the number of stores by market in, say a mature market, in the metro market for example would probably be less than we have today.
We can't tell you the exact number because we're kind of honing in on that as we continue to learn from the data. But certainly, our expectation is we'll have probably fewer stores and a more robust e-com platform, which includes the mobile platform as we move forward. So that's the direction we're broadly going. In terms of the mergers, and I'll let Douglas to come in if this is incorrect, but we're having good results from that.
That's the reason we've continued to do these close emerges is that we have been pleased with the predictability and the kind of runoff and retention of merged customers over time. And that's one of the advantages we have versus the traditional retailers. We do have a portfolio of leases in these stores with the recurring revenue base. And so, our ability to retain that when we close and merge into another store is we're accretive from a profitability standpoint, and we've seen good predictability around that.
And then there is the mileage component depending on how far away the stores are apart, but we've been pleased with the performance of that and that's one of the reasons we've continued to execute that strategy.
Douglas Lindsay -- President of the Aaron's Business
Yeah. The only thing I'd add to that, John, is this is all part of our larger market repositioning strategy which includes closing stores, relocating stores and opening our next gen store concepts. We opened six next-gen stores in the quarter and we're continuing to refine our national marketing plans, optimizing the footprint of, as John said, our rural market store versus the urban store, and really value engineering of what we're doing. I think the magic and a lot of what we're doing right now and the momentum we're starting to see is in the operating model, not just in the way we sort of free our people up to get a cell and convert the customers that walk in the doors, but also reducing our -- being more efficient in our dollars we spend in our operating model and getting greater productivity through things like digital decisioning and centralized collecting.
And so, we'll to continue to pursue that with this real estate strategy.
John Baugh -- Stifel Financial Corp. -- Analyst
OK. And then if I could, a quick question on progressive for Ryan. I appreciate we're not going to get the rollout in the retailers we're talking with, but I'm curious on the -- you said frankly ever since progressive has been part of Aaron that you're spending for future growth. And the question is, where are we in terms of have we spent enough, have we spent too much, based on what you know, again won't share necessarily, but I'm trying to get a sense of whether or not the business is growing about the pace you saw and your infrastructure is ready or do you have some retailers you're talking with who maybe you're having to hold off because you're growing maybe faster than you thought?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
So just broad-based comments. Obviously, our belief in the merits of investing in the business is derived from the fact that we think it's a large underserved market. We really believe it's a $20-plus billion market, a fraction of which is currently being served, and we think we're well-positioned, very well-positioned to capture the bulk of that opportunity, which is why we have sort of the interest in investing. I'd say we're very pleased that we've been able to do that while generating margin expansion and at the pace at with which we've been invested in the business has been very measured.
We try to be thoughtful about pacing that investment with the pace of evolution and the pipeline. And I think we've managed to pace that pretty well. I'm very confident that we can handle any of the volume sitting in our pipeline. And we've made the appropriate investments, I'd say, in infrastructure and team to be able to support that.
It's that we talk a lot about investing in people and systems and that really is what it is. We have an extremely talented team across all the functions in the business and every one of those has grown over the last year and we're continuing to invest in those so that we really can handle any opportunity out there. And I feel good about where we're at, I feel good about where the pipeline is today, I feel good about our ability to manage those opportunities.
John Robinson -- President and Chief Executive Officer
And John, this is John Robinson. I'll say, just having been around progressive a while now, I think all those things Ryan said exactly right. I feel better about our ability to capture the opportunity in front of us today than I've ever felt and relative to the pipeline we have in front of us, our ability to handle that, manage it not only from an operational standpoint, but from a capital standpoint for sure in really all aspects of the business. So I think the business is very well-positioned to continue to capitalize on the opportunity.
And we've said this in the past and I'll just repeat it, but we are -- and Ryan and the team have done a great job of balancing, managing margin, EBITDA margin, in the context of this big unserved market. But we really are focused on capturing the opportunity more than trying to capture every last dollar of margin right now because we just think it's such a big opportunity and being the incumbent, being the first to have retailers is important and has proven to be over time and we just want to continue to kind of win that race. We think we have an advantage in the market right now from a product and team standpoint and we want to continue to kind of build on that advantage so that we can continue to have these wins and have these growth rates, which these guys have put up now for really consistently for a number of years.
John Baugh -- Stifel Financial Corp. -- Analyst
And, John, on that front really quickly. Obviously, this is a growing industry and it's attracting competitors and capital. Are you seeing any change in competition, which I know you've always cited, there's always somebody that walks in and offers a better conversion rate or approval rate, whatever? Is it changing to a degree it's impacting you? Obviously, your margins are good, but I'm just curious in the competitive landscape.
John Robinson -- President and Chief Executive Officer
Yeah, I mean, it's a good question. It's definitely. I mean, all the way back to when Aaron's acquired Progressive, we feel like it has attracted more and more competitors and the awareness around the industry is higher among capital providers. So there is certainly more competitors probably than we've ever seen in the market.
I kind of think of it as those competitors who are serving the regions versus the ones who are serving the large enterprise accounts. I feel like we have a real unmatched product and team to serve a large retailer. And just as I mentioned before, we want to continue to build on the lead we think we have there. And it's definitely there are some good competitors.
We think we're the best provider out there. But we've got to stay on our toes and we've got to keep investing to stay ahead. So that's part of what you see. And if you ask Ryan the question where we're investing, we're investing across all functional areas to get better across the whole enterprise to be able to continue to be the best provider out there.
But it has been competitive, it remains competitive, it's always changing. And we just put a lot of pressure on ourselves to keep getting better and have the best solution in the market. And that's how we think about it. We're always feeling a great sense of urgency to improve and we have a great kind of roadmap of product and how we need to change and grow and get better and we're working down that pipeline as fast as we can.
John Baugh -- Stifel Financial Corp. -- Analyst
Great. Thanks. Good luck.
Operator
The next question is from Bill Chappell of SunTrust. Please go ahead.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Thanks. Good morning. Bill, a few hopefully quick questions and one longer. On the Aaron's side, Douglas, I guess would you expect just a little more clarification kind of the write-offs to be at this level for the next few quarters or would they go higher before they go lower? And then also on same-store sales, what's kind of the outlook on same-store sales growth as we start to lap some of the Sunday openings by the time we get to the fourth quarter?
Douglas Lindsay -- President of the Aaron's Business
Yeah, hey Bill, just addressing the write-offs first. We just closed the second set of 70 stores at the end of the quarter. So I would expect in the third quarter to see sort of the same as what you've seen in the second quarter, adjusted for our normal seasonal third-quarter increase. But year over year, you should expect to see kind of what you're seeing here in the second quarter, given the store closure pace.
That will moderate toward the end of the year. But we've been up about 100 basis points year over year. And I expect that's where it will settle back down. We will continue to try to drive new customers into the pipeline I think that are higher write-off rate; one, because they've got a higher book value of the assets they're writing off and two, they just write off at a higher rate as new customers normally do.
And as far as same-store comps, I'm really proud of the team. We had another quarter of positive comps. I think we're 190 basis points over last year. As you recall, first quarter was our first positive comp since 2013.
So the team has done an awesome job on that. What I'm most excited about is that we rebounded on our key leading indicator of recurring revenue written into the portfolio, which was up this quarter and continues that streak from last year that we were seeing. We're attracting more new customers and probably importantly, we saw strength in the latter part of the quarter, which we're excited about. So we've kept our guidance at zero to 2%.
We see ourselves coming in within that guidance and it will be sort of flat to 0.2% for the year. What's driving a lot of that right now is this reinvestment that I mentioned on the call and marketing and sales training and incentive programs, along with these merchandising strategies that continue to get traction, and of course we talked about e-com, that was up 67% and the revenue we put into the portfolio year over year. So those are all helping us with comps considerably.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. And then, Ryan, switching to Progressive. I understand your commentary that store count is becoming less and less relevant, but there's certainly some of your existing customers that are being door shrinking and will continue that way. I mean, do you expect this trend, your door count, to be at this level for a while in terms of down 12 percentage points year over year? Does it get worse? Does it get better as others start to expand a little bit faster?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Good question. So we talked about the specific drivers of the decline we're currently seeing in the business. On the base of 19,800, we did have some nice additions from new and existing partnerships inside of that number, obviously overcome by the two drivers we mentioned on the last call: the decline in mattress from one of our partners there and then in mobile as well. So that being said, we'll still be comping those declines throughout this year.
But there are obviously significant basis of doors still out there left to win and onboard on the platform. So that opportunity is out there. And then once we comp those two specific reductions, obviously we won't be facing that headwind as well on the existing base, which has seen some growth inside of it that was just offset by those two declines. So we'll be comping -- short answer is we'll be comping those for this year and we've got some opportunity to grow it going forward.
John Robinson -- President and Chief Executive Officer
And Bill, obviously -- this is John -- a lot of the opportunity in the pipeline is our e-com and/or larger footprint type door. So they can bring a lot of invoice without necessarily moving the door metric as much as we might have seen in the past with other types of doors. So that has been the case for the last couple of years for us as we just had very productive doors coming to the system.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Perfect segue into my last question. Just -- Ryan, maybe just if you were to have signed a large kind of online e-commerce customer, how does that work in terms of versus the traditional door, how quickly it ramps? Just because the signage is obviously different, the customer interaction is different. And so I don't know if it takes significantly longer than a bricks and mortar retailer that has a similar revenue base or if it's much, much faster.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Fair question. I would say it -- I expect it to be very similar to our offline partnerships, which is a very dramatically partner to partner. And it depends on both the nature and the integration and then the level of collaboration between the teams and the extent to which the offering is being promoted on the site as the corollary of being promoted in store with POP and all of those will be -- will have a significant influence on the pace of growth in our online opportunities. We're super excited about the channel.
We've spent a lot of time and resource investing and building out our technology offering there, as well as our team. I'm pleased with where we're at, excited about where we're going. Our goal is to develop the toolkit we need to help a broad base of e-commerce retailers serve this customer as we've done over the past two decades offline. I think it's a really large opportunity and I think we're sort of uniquely positioned to help execute on that strategy for our online partners.
We were very bullish on online and mobile representing a big portion of the business years into the future.
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Got it. Thank you.
Operator
The next question is from Budd Bugatch of Raymond James. Please go ahead.
Budd Bugatch -- Raymond James -- Analyst
Good morning everyone. Thank you for taking my questions. Ryan, I was curious, you had talked about the 130 basis points of gross margin expansion due primarily I think if I recall properly from a lower penetration of 90-day or due significantly from that. Can you talk a little bit about that, maybe give us some color of any indication of what the verticals that may be in or whether that's some commentary about the health of the credit challenged consumer?
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Sure, will do. So not necessarily a health of the consumer, really an artifact of the shift and mix. And that's the function of a lot of variables there that go into our portfolio mix. I'll give you some examples.
So when we onboard a new partner, that partner may have a naturally different level of 90 -- organic level of 90-day buyouts based on their customer composition. If we see different rates of growth across partners that can influence it, if we see a different pricing, overall growth of the portfolio, all of those things have the ability to influence levels of 90-day where we saw 190 basis points of expansion in Q1, so it has moderated a bit from that level to the 130 in Q2. We expect it to continue to moderate and it really just depends on the timing and mix of invoice, especially new invoice being added.
Budd Bugatch -- Raymond James -- Analyst
And Douglas, rapid customer onboarding, how is that progressing? How many stores are doing that? And what does it look like in the portfolio?
Douglas Lindsay -- President of the Aaron's Business
Sure. Glad you asked because we've been working hard on that. We've been testing it in about 200 stores. We've seen great success in adoption.
Our team members love it. It takes considerable amount of labor out of the stores and leaves the processing to us versus processing sitting at the store. What they like probably most about it is the digital interface where we can onboard a customer and offer them all of our products and e-sign our docs and send them away with digital docs, which is a convenience to the customer and it also helps us to lead them through the onboarding process in a more uniform way. In terms of the decisioning, we've seen really strong results there.
We continue to optimize it. We should be with digital tablets, onboarding tablets in every store by the end of the year and then shortly following with decisioning platform that would allow us to make -- sort of size the customer. And if you think of it at the journey, that's where you come into an Aaron's store, fill in your information and we tell you what your leasing power is and then you go shop and then we check it out digitally on a tablet. And the vision of that experience is coming to light right now in our stores and will probably be in the first half of 2020.
John Robinson -- President and Chief Executive Officer
And, Budd, I'll add one thing, this is John. Following the last set of questions, one of the exciting parts about rapid customer onboarding and as Douglas said, it is an evolution of our business. You know this business well. We're going through a transformation and you've got to do it in steps.
And Douglas and his team, John Smith and Steve Olsen, they're doing an amazing job executing this. But we've got to do it -- we've got to sequence it right, they're doing that. One of the exciting parts about rapid customer onboarding is the ability, once it's in place, to centrally manage risk better than we've ever been able to do it before. That's one of the huge advantages we have at progressive is our ability to turn on and off different pools of opportunity and approval rates and the things that we can change, really agile, be very agile and changing, we can do that at progressive, we can't do it at Aaron's.
But rapid customer onboarding will get us to that point, which gives you a much better ability to kind of dial-up your risk-adjusted margin you're looking for. And the progressive guys have been hugely helpful in getting us there on the Aaron's side, but it's a big opportunity that we don't really get the benefit of this year, but we're excited about in the future.
Douglas Lindsay -- President of the Aaron's Business
One last thing, Budd, I mean I'll just add we get data capture and sales conversion data and have additional labor hours we can deploy into the selling process, which are all great benefits of this as well.
Budd Bugatch -- Raymond James -- Analyst
But to make sure I understand it, I thought -- I think you said you're going to have it in all stores by the end of the year, but right now it's only in 200, so that's like up a hundred from where it was earlier. So you're really backend loading this and it's a 2020 advantage as opposed to 2019?
Douglas Lindsay -- President of the Aaron's Business
Yeah, let me be clear. We're going to have the digital platform in our checkout process in all stores by the end of the year and that's going to allow our associates to get comfortable with the process and we will layer on the decisioning part of that in the first part of 2020 and we should get the benefits throughout 2020.
John Robinson -- President and Chief Executive Officer
But to further clarify, in the 200-plus stores today we have the digital and the decisioning.
Douglas Lindsay -- President of the Aaron's Business
Yeah, we've both of them in there.
John Robinson -- President and Chief Executive Officer
Which has enabled us to get a lot of data and to understand performance of lease pools based on the decisioning.
Budd Bugatch -- Raymond James -- Analyst
OK. And last for me. You closed about, well, just under 70 stores if my math is right, at the end of the quarter you said. What's the balance of the year look like? Are you going to do some more close mergers of size or are we pretty well done for 2019?
Douglas Lindsay -- President of the Aaron's Business
Yeah. I mean We're going to follow our normal course process, Budd, but we don't expect any large-scale closures between now and the end of the year.
Budd Bugatch -- Raymond James -- Analyst
Thank you very much. Good luck on the balance of the year.
Operator
The next question is a follow up Anthony Chukumba of Loop Capital Markets. Please go ahead.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Thanks for allowing me to double dip here a bit. So you talked briefly about the new store concept now path, and I know that you've seen some pretty impressive results from that. I guess I was just looking for an update in terms of rolling out some of the learning from those concept stores to the rest of the store base?
Douglas Lindsay -- President of the Aaron's Business
Sure. We're now up to 10 stores that we've opened with the new store concept. We initially had a prototype store where we, as you might imagine, sort of spent what we needed to spent to get it right and drive volume. We learned that we could drive the top line and we needed to optimize the rest of the model.
We've been working hard to do that. And so, we've been working on value engineering or build out, figuring out what our new labor model is and really refining what's in the store. I mean, if you think about our new store concept, it's a larger showroom, really removing the servicing offices, completely remodeled the exterior and interior, new brand look and it's totally static in the main part of the showrooms and they're pre-leased. And we have dedicated pre-leased areas and then we have, as we talked about with RCO, digital onboarding and a virtual shopping experience within those stores.
Layering on that, we've put in centralized servicing there and so we've learned a lot from that. The biggest thing we've learned is we can not only value-engineer, but we can optimize the operating model to give us a return within the lease periods that we're signing. So we're gaining confidence. We've also learned that slightly bigger stores operate better.
And with that confidence, it has allowed us to sort of accelerate the pace of our build out of these stores. So we've got a number of stores in the pipeline as we've communicated previously. And we are building a team on the real estate side that is much more strategic in terms of the way we think about markets and where we put these things. It will not be a one size fits all.
So in Aransas Pass, Texas, we may have a smaller store that is more remote than a store we might put in Atlanta where we have other stores nearby. We could foresee in the future within our high-density markets having higher stores with smaller surrounding satellite stores that may potentially be serviced through hubs and shared resources. But we're really optimistic about the concept.
John Robinson -- President and Chief Executive Officer
And Anthony, I'll add just to make sure on your question. The things -- some of the things that we are scaling across the system already and we just talked about digital customer onboarding, that has been one of their kind of pieces of the new store concept that Douglas and the team have tested, seeing great results from, seeing great customer adoption and feedback from customers. We're now, as we've just discussed, scaling across the whole system this year.We've also learned in part of our new store concept was new incentive programs and we're also adopting some new sales training. And those are two effective and big projects right now that we are scaling across the whole system.
So these are all things that have been part of this transformation effort that are getting across the whole system. The real estate part, as Douglas just discussed, is a longer-term process that we're trying to get right given that there's more capital involved. And we want to make sure we're very prudent about how we spend that capital. So we're refining it and it's going to be a little different by market, as Douglas said, and there's going to be a big e-com component.
And Douglas and his team have done an awesome job figuring out the right mix by market.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's helpful. And then just one last question. You mentioned that the strong progressive invoice volume per active door growth is driven by increase in lease transacted in nearly every vertical.
I guess, I was wondering, as you add these larger partners, is it a reasonable expectation to think that your invoice volume per active door growth will continue to be quite robust as you layer in these larger partners who obviously are going to do a lot more volume than postpaid wireless reseller?
John Robinson -- President and Chief Executive Officer
On the whole, Anthony, yes, I'd say that's true. It's also going to be true as the mix shifts toward online more as well just given how we count those doors. We're going to see higher levels of average door productivity coming from online, but yes.
Douglas Lindsay -- President of the Aaron's Business
And one thing I will emphasize that I think Ryan said earlier, I want to make sure everyone understands is that the team has done an amazing job of bringing on new retailers with big footprint doors. But they're doing an equally admirable job of driving more volume in the existing doors that we have, with our existing retail partners. So a lot of the investment, much of the investment that we make is to make our existing partners more successful and the team has done an excellent job of doing that. And that's showing up in these numbers.
Anthony Chukumba -- Loop Capital Markets -- Analyst
Got it. That's helpful. And, sorry, just one last clarification. The 68% increase in e-commerce revenues, was that just in the Aaron's business or was that overall?
Douglas Lindsay -- President of the Aaron's Business
That's just in the Aaron's business and just to further clarify, that 68% of increase in recurring revenue written into the portfolio, which is our leading indicator. That's not a revenue number, but it's what we put into the portfolio, 68% higher than what we did last year.
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
It's effectively the recurring revenue that you expect. If you think about a transaction, you have a recurring payment. It's just the recurring payment aggregated that we've written into the portfolio at any given period.
Anthony Chukumba -- Loop Capital Markets -- Analyst
That's helpful. And thanks so much.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to John Robinson for closing remarks.
John Robinson -- President and Chief Executive Officer
Thank you. To summarize, we are pleased with the strong first half of 2019. We recognize we must continue to execute on our plan to achieve the improved results indicated by our updated outlook and our team is up to the task. We are pleased with ongoing performance of progressive and the progress being made by the Aaron's business and its transformation efforts.
I'd like to thank all of our associates, retail partners and franchisees for their dedication to providing high quality products to our customers. And thank you very much for joining us today.
Operator
[Operator signoff]
Duration: 54 minutes
Call participants:
Michael Dickerson -- Vice President of Corporate Communications and Investor Relations
John Robinson -- President and Chief Executive Officer
Ryan Woodley -- Chief Executive Officer of Progressive Leasing
Douglas Lindsay -- President of the Aaron's Business
Steve Michaels -- Chief Financial Officer and President of Strategic Operations
Kyle Joseph -- Jefferies -- Analyst
Anthony Chukumba -- Loop Capital Markets -- Analyst
Brad Thomas -- KeyBanc Capital Markets -- Analyst
John Baugh -- Stifel Financial Corp. -- Analyst
Bill Chappell -- SunTrust Robinson Humphrey -- Analyst
Budd Bugatch -- Raymond James -- Analyst
More AAN analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Aaron's (NYSE: AAN) Q2 2019 Earnings Call Jul 25, 2019, 8:30 a.m. Operator [Operator signoff] Duration: 54 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Kyle Joseph -- Jefferies -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Budd Bugatch -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Our risk team lead by Tanner Barney is doing an excellent job designing and executing decisioning strategies that account for ongoing shifts in portfolio mix while enabling us to deliver results within the target ranges of profitability we provided.
|
Operator [Operator signoff] Duration: 54 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Kyle Joseph -- Jefferies -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Budd Bugatch -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q2 2019 Earnings Call Jul 25, 2019, 8:30 a.m. Welcome to the Aaron's, Inc. second-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 54 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Kyle Joseph -- Jefferies -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Budd Bugatch -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q2 2019 Earnings Call Jul 25, 2019, 8:30 a.m. Welcome to the Aaron's, Inc. second-quarter 2019earnings conference call Joining me this morning are John Robinson, Aaron's, Inc. president and chief executive officer; Ryan Woodley, chief executive officer of progressive leasing; Douglas Lindsay, president of the Aaron's business; and Steve Michaels, Aaron's, Inc. chief financial officer and president of strategic operations.
|
Operator [Operator signoff] Duration: 54 minutes Call participants: Michael Dickerson -- Vice President of Corporate Communications and Investor Relations John Robinson -- President and Chief Executive Officer Ryan Woodley -- Chief Executive Officer of Progressive Leasing Douglas Lindsay -- President of the Aaron's Business Steve Michaels -- Chief Financial Officer and President of Strategic Operations Kyle Joseph -- Jefferies -- Analyst Anthony Chukumba -- Loop Capital Markets -- Analyst Brad Thomas -- KeyBanc Capital Markets -- Analyst John Baugh -- Stifel Financial Corp. -- Analyst Bill Chappell -- SunTrust Robinson Humphrey -- Analyst Budd Bugatch -- Raymond James -- Analyst More AAN analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Aaron's (NYSE: AAN) Q2 2019 Earnings Call Jul 25, 2019, 8:30 a.m. How many stores are doing that?
|
8991.0
|
2019-07-25 00:00:00 UTC
|
Notable Thursday Option Activity: FDX, AAN, PZZA
|
AAN
|
https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-fdx-aan-pzza-2019-07-25
|
nan
|
nan
|
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in FedEx Corp (Symbol: FDX), where a total of 14,152 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 55% of FDX's average daily trading volume over the past month of 2.6 million shares. Particularly high volume was seen for the $177.50 strike call option expiring July 26, 2019, with 868 contracts trading so far today, representing approximately 86,800 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $177.50 strike highlighted in orange:
Aaron's Inc (Symbol: AAN) saw options trading volume of 3,920 contracts, representing approximately 392,000 underlying shares or approximately 54.5% of AAN's average daily trading volume over the past month, of 719,065 shares. Especially high volume was seen for the $60 strike put option expiring August 16, 2019, with 1,020 contracts trading so far today, representing approximately 102,000 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Papa John's International, Inc. (Symbol: PZZA) options are showing a volume of 4,035 contracts thus far today. That number of contracts represents approximately 403,500 underlying shares, working out to a sizeable 54.4% of PZZA's average daily trading volume over the past month, of 741,150 shares. Particularly high volume was seen for the $50 strike call option expiring September 20, 2019, with 2,256 contracts trading so far today, representing approximately 225,600 underlying shares of PZZA. Below is a chart showing PZZA's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for FDX options, AAN options, or PZZA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $60 strike put option expiring August 16, 2019, with 1,020 contracts trading so far today, representing approximately 102,000 underlying shares of AAN. Below is a chart showing FDX's trailing twelve month trading history, with the $177.50 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 3,920 contracts, representing approximately 392,000 underlying shares or approximately 54.5% of AAN's average daily trading volume over the past month, of 719,065 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $60 strike highlighted in orange: And Papa John's International, Inc. (Symbol: PZZA) options are showing a volume of 4,035 contracts thus far today.
|
Below is a chart showing FDX's trailing twelve month trading history, with the $177.50 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 3,920 contracts, representing approximately 392,000 underlying shares or approximately 54.5% of AAN's average daily trading volume over the past month, of 719,065 shares. Below is a chart showing AAN's trailing twelve month trading history, with the $60 strike highlighted in orange: And Papa John's International, Inc. (Symbol: PZZA) options are showing a volume of 4,035 contracts thus far today. Below is a chart showing PZZA's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for FDX options, AAN options, or PZZA options, visit StockOptionsChannel.com.
|
Below is a chart showing FDX's trailing twelve month trading history, with the $177.50 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 3,920 contracts, representing approximately 392,000 underlying shares or approximately 54.5% of AAN's average daily trading volume over the past month, of 719,065 shares. Below is a chart showing PZZA's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for FDX options, AAN options, or PZZA options, visit StockOptionsChannel.com. Especially high volume was seen for the $60 strike put option expiring August 16, 2019, with 1,020 contracts trading so far today, representing approximately 102,000 underlying shares of AAN.
|
Below is a chart showing FDX's trailing twelve month trading history, with the $177.50 strike highlighted in orange: Aaron's Inc (Symbol: AAN) saw options trading volume of 3,920 contracts, representing approximately 392,000 underlying shares or approximately 54.5% of AAN's average daily trading volume over the past month, of 719,065 shares. Below is a chart showing PZZA's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for FDX options, AAN options, or PZZA options, visit StockOptionsChannel.com. Especially high volume was seen for the $60 strike put option expiring August 16, 2019, with 1,020 contracts trading so far today, representing approximately 102,000 underlying shares of AAN.
|
8992.0
|
2019-07-22 00:00:00 UTC
|
September 20th Options Now Available For Aaron's (AAN)
|
AAN
|
https://www.nasdaq.com/articles/september-20th-options-now-available-for-aarons-aan-2019-07-22
|
nan
|
nan
|
Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the September 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new September 20th contracts and identified one put and one call contract of particular interest.
The put contract at the $60.00 strike price has a current bid of $1.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $58.25 (before broker commissions). To an investor already interested in purchasing shares of AAN, that could represent an attractive alternative to paying $64.19/share today.
Because the $60.00 strike represents an approximate 7% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 71%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.92% return on the cash commitment, or 17.74% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aaron's Inc, and highlighting in green where the $60.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $3.40. If an investor was to purchase shares of AAN stock at the current price level of $64.19/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.56% if the stock gets called away at the September 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red:
Considering the fact that the $65.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 50%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.30% boost of extra return to the investor, or 32.22% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 42%, while the implied volatility in the call contract example is 40%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $64.19) to be 36%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the September 20th expiration.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the September 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new September 20th contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the September 20th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new September 20th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new September 20th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the September 20th expiration.
|
8993.0
|
2019-07-03 00:00:00 UTC
|
Notable Wednesday Option Activity: AAN, SAM, FLT
|
AAN
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aan-sam-flt-2019-07-03
|
nan
|
nan
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aaron's Inc (Symbol: AAN), where a total volume of 3,668 contracts has been traded thus far today, a contract volume which is representative of approximately 366,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45% of AAN's average daily trading volume over the past month, of 814,335 shares. Especially high volume was seen for the $55 strike put option expiring August 16, 2019, with 3,008 contracts trading so far today, representing approximately 300,800 underlying shares of AAN. Below is a chart showing AAN's trailing twelve month trading history, with the $55 strike highlighted in orange:
Boston Beer Co Inc (Symbol: SAM) options are showing a volume of 674 contracts thus far today. That number of contracts represents approximately 67,400 underlying shares, working out to a sizeable 44.7% of SAM's average daily trading volume over the past month, of 150,855 shares. Particularly high volume was seen for the $230 strike put option expiring August 16, 2019, with 210 contracts trading so far today, representing approximately 21,000 underlying shares of SAM. Below is a chart showing SAM's trailing twelve month trading history, with the $230 strike highlighted in orange:
And FleetCor Technologies Inc (Symbol: FLT) options are showing a volume of 3,046 contracts thus far today. That number of contracts represents approximately 304,600 underlying shares, working out to a sizeable 40.7% of FLT's average daily trading volume over the past month, of 748,615 shares. Especially high volume was seen for the $270 strike put option expiring August 16, 2019, with 735 contracts trading so far today, representing approximately 73,500 underlying shares of FLT. Below is a chart showing FLT's trailing twelve month trading history, with the $270 strike highlighted in orange:
For the various different available expirations for AAN options, SAM options, or FLT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Especially high volume was seen for the $55 strike put option expiring August 16, 2019, with 3,008 contracts trading so far today, representing approximately 300,800 underlying shares of AAN. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aaron's Inc (Symbol: AAN), where a total volume of 3,668 contracts has been traded thus far today, a contract volume which is representative of approximately 366,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45% of AAN's average daily trading volume over the past month, of 814,335 shares.
|
Especially high volume was seen for the $55 strike put option expiring August 16, 2019, with 3,008 contracts trading so far today, representing approximately 300,800 underlying shares of AAN. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aaron's Inc (Symbol: AAN), where a total volume of 3,668 contracts has been traded thus far today, a contract volume which is representative of approximately 366,800 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45% of AAN's average daily trading volume over the past month, of 814,335 shares.
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aaron's Inc (Symbol: AAN), where a total volume of 3,668 contracts has been traded thus far today, a contract volume which is representative of approximately 366,800 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $55 strike put option expiring August 16, 2019, with 3,008 contracts trading so far today, representing approximately 300,800 underlying shares of AAN. That number works out to 45% of AAN's average daily trading volume over the past month, of 814,335 shares.
|
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Aaron's Inc (Symbol: AAN), where a total volume of 3,668 contracts has been traded thus far today, a contract volume which is representative of approximately 366,800 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing FLT's trailing twelve month trading history, with the $270 strike highlighted in orange: For the various different available expirations for AAN options, SAM options, or FLT options, visit StockOptionsChannel.com. That number works out to 45% of AAN's average daily trading volume over the past month, of 814,335 shares.
|
8994.0
|
2019-06-24 00:00:00 UTC
|
February 2020 Options Now Available For Aaron's (AAN)
|
AAN
|
https://www.nasdaq.com/articles/february-2020-options-now-available-for-aarons-aan-2019-06-24
|
nan
|
nan
|
Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the February 2020 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new February 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $60.00 strike price has a current bid of $4.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $60.00, but will also collect the premium, putting the cost basis of the shares at $55.30 (before broker commissions). To an investor already interested in purchasing shares of AAN, that could represent an attractive alternative to paying $62.53/share today.
Because the $60.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 63%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.83% return on the cash commitment, or 11.81% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Aaron's Inc, and highlighting in green where the $60.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $5.30. If an investor was to purchase shares of AAN stock at the current price level of $62.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.43% if the stock gets called away at the February 2020 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red:
Considering the fact that the $65.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.48% boost of extra return to the investor, or 12.78% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 45%, while the implied volatility in the call contract example is 43%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $62.53) to be 37%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAN shares really soar, which is why looking at the trailing twelve month trading history for Aaron's Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the February 2020 expiration.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the February 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new February 2020 contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the February 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new February 2020 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAN options chain for the new February 2020 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAN's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Aaron's Inc (Symbol: AAN) saw new options become available today, for the February 2020 expiration.
|
8995.0
|
2019-06-03 00:00:00 UTC
|
Implied MDYV Analyst Target Price: $58
|
AAN
|
https://www.nasdaq.com/articles/implied-mdyv-analyst-target-price%3A-%2458-2019-06-03
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P 400 Mid Cap Value ETF (Symbol: MDYV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $57.61 per unit.
With MDYV trading at a recent price near $47.67 per unit, that means that analysts see 20.84% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MDYV's underlying holdings with notable upside to their analyst target prices are Core Laboratories N.V. (Symbol: CLB), Trex Co Inc (Symbol: TREX), and Aaron's Inc (Symbol: AAN). Although CLB has traded at a recent price of $47.64/share, the average analyst target is 47.72% higher at $70.38/share. Similarly, TREX has 23.91% upside from the recent share price of $59.82 if the average analyst target price of $74.12/share is reached, and analysts on average are expecting AAN to reach a target price of $65.12/share, which is 22.28% above the recent price of $53.26. Below is a twelve month price history chart comparing the stock performance of CLB, TREX, and AAN:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Below is a twelve month price history chart comparing the stock performance of CLB, TREX, and AAN: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MDYV's underlying holdings with notable upside to their analyst target prices are Core Laboratories N.V. (Symbol: CLB), Trex Co Inc (Symbol: TREX), and Aaron's Inc (Symbol: AAN). Similarly, TREX has 23.91% upside from the recent share price of $59.82 if the average analyst target price of $74.12/share is reached, and analysts on average are expecting AAN to reach a target price of $65.12/share, which is 22.28% above the recent price of $53.26.
|
Three of MDYV's underlying holdings with notable upside to their analyst target prices are Core Laboratories N.V. (Symbol: CLB), Trex Co Inc (Symbol: TREX), and Aaron's Inc (Symbol: AAN). Similarly, TREX has 23.91% upside from the recent share price of $59.82 if the average analyst target price of $74.12/share is reached, and analysts on average are expecting AAN to reach a target price of $65.12/share, which is 22.28% above the recent price of $53.26. Below is a twelve month price history chart comparing the stock performance of CLB, TREX, and AAN: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Similarly, TREX has 23.91% upside from the recent share price of $59.82 if the average analyst target price of $74.12/share is reached, and analysts on average are expecting AAN to reach a target price of $65.12/share, which is 22.28% above the recent price of $53.26. Below is a twelve month price history chart comparing the stock performance of CLB, TREX, and AAN: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MDYV's underlying holdings with notable upside to their analyst target prices are Core Laboratories N.V. (Symbol: CLB), Trex Co Inc (Symbol: TREX), and Aaron's Inc (Symbol: AAN).
|
Below is a twelve month price history chart comparing the stock performance of CLB, TREX, and AAN: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of MDYV's underlying holdings with notable upside to their analyst target prices are Core Laboratories N.V. (Symbol: CLB), Trex Co Inc (Symbol: TREX), and Aaron's Inc (Symbol: AAN). Similarly, TREX has 23.91% upside from the recent share price of $59.82 if the average analyst target price of $74.12/share is reached, and analysts on average are expecting AAN to reach a target price of $65.12/share, which is 22.28% above the recent price of $53.26.
|
8996.0
|
2019-05-02 00:00:00 UTC
|
We Did The Math RNMC Can Go To $24
|
AAN
|
https://www.nasdaq.com/articles/we-did-math-rnmc-can-go-24-2019-05-02
|
nan
|
nan
|
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Mid Cap US Equity Select ETF (Symbol: RNMC), we found that the implied analyst target price for the ETF based upon its underlying holdings is $24.50 per unit.
With RNMC trading at a recent price near $22.26 per unit, that means that analysts see 10.10% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RNMC's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Valmont Industries Inc (Symbol: VMI), and Domtar Corp (Symbol: UFS). Although AAN has traded at a recent price of $54.63/share, the average analyst target is 17.15% higher at $64.00/share. Similarly, VMI has 16.24% upside from the recent share price of $132.48 if the average analyst target price of $154.00/share is reached, and analysts on average are expecting UFS to reach a target price of $52.44/share, which is 15.03% above the recent price of $45.59. Below is a twelve month price history chart comparing the stock performance of AAN, VMI, and UFS:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Although AAN has traded at a recent price of $54.63/share, the average analyst target is 17.15% higher at $64.00/share. Below is a twelve month price history chart comparing the stock performance of AAN, VMI, and UFS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RNMC's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Valmont Industries Inc (Symbol: VMI), and Domtar Corp (Symbol: UFS).
|
Three of RNMC's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Valmont Industries Inc (Symbol: VMI), and Domtar Corp (Symbol: UFS). Although AAN has traded at a recent price of $54.63/share, the average analyst target is 17.15% higher at $64.00/share. Below is a twelve month price history chart comparing the stock performance of AAN, VMI, and UFS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
Below is a twelve month price history chart comparing the stock performance of AAN, VMI, and UFS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RNMC's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Valmont Industries Inc (Symbol: VMI), and Domtar Corp (Symbol: UFS). Although AAN has traded at a recent price of $54.63/share, the average analyst target is 17.15% higher at $64.00/share.
|
Although AAN has traded at a recent price of $54.63/share, the average analyst target is 17.15% higher at $64.00/share. Three of RNMC's underlying holdings with notable upside to their analyst target prices are Aaron's Inc (Symbol: AAN), Valmont Industries Inc (Symbol: VMI), and Domtar Corp (Symbol: UFS). Below is a twelve month price history chart comparing the stock performance of AAN, VMI, and UFS: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
|
8997.0
|
2019-04-25 00:00:00 UTC
|
Why Boston Beer, Aaron's, and ServiceNow Jumped Today
|
AAN
|
https://www.nasdaq.com/articles/why-boston-beer-aarons-and-servicenow-jumped-today-2019-04-25
|
nan
|
nan
|
The stock market dealt with earnings-related volatility on Thursday that pulled various benchmarks in different directions. High-profile disappointments among blue chip stocks dragged the Dow Jones Industrial Average down more than 200 points at the beginning of the session, but the Nasdaq Composite moved higher on good news from the tech industry. Many other stocks posted sizable gains due to positive earnings reports. Boston Beer (NYSE: SAM), Aaron's (NYSE: AAN), and ServiceNow (NYSE: NOW) were among the top performers. Here's why they did so well.
Raise a glass to Boston Beer's earnings
Shares of Boston Beer climbed more than 8% after the maker of Sam Adams reported its first-quarter financial results. Boston Beer said that revenue jumped 32% from year-ago levels due largely to increased shipment volume, helping net income more than double over the same period. Company founder Jim Koch attributed the big gains to "key innovations, the quality of our products and our strong brands, as well as successful sales execution and support from our distributors." Even though Boston Beer is seeing the same pressures in the beer industry that have hurt its rivals, the brewer believes that it can get even more from its beer brands while also giving customers additional categories of beverages to enjoy.
Image source: Boston Beer.
Aaron's owns the rent-to-own segment
Rent-to-own retail specialist Aaron's saw its stock climb 11% following the release of its first-quarter financial report. Aaron's reported a double-digit rise in revenue when calculated using comparable lease accounting standards, with same-store revenue rising 0.7%. As we've seen in past periods, a substantial portion of Aaron's growth came from its progressive leasing segment, which works with third-party retail partners in around 20,000 locations across the U.S. to offer lease-purchase solutions. Yet Aaron's own namesake store locations also performed reasonably well despite 85 store closures during the quarter. So far, the company seems to be navigating changing consumer preferences well, and that could help Aaron's stock climb even further in the future.
ServiceNow gets a lift from government clients
Finally, shares of ServiceNow rose 7.5%. The cloud computing digital workflow platform provider said that revenue climbed 34% during the first quarter of 2019 compared to the year-earlier period, with subscription-based sales seeing an even stronger 36% rise. ServiceNow boasted 25 transactions with $1 million or more in annual contract value during the quarter, bringing its total customer count of clients of that size to 717. CEO John Donahoe highlighted the "core strategic partner role we are playing in enabling digital transformation for large public sector agencies" and private businesses, and with its productivity-enhancing tools gaining popularity, ServiceNow looks like there's no end in sight for its strong growth.
Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has quadrupled the S&P 500!*
Tom and David just revealed their ten top stock picks for investors to buy right now.
Click here to get access to the full list!
*Stock Advisor returns as of Jan. 31, 2019.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Boston Beer. The Motley Fool owns shares of Service Now. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Boston Beer (NYSE: SAM), Aaron's (NYSE: AAN), and ServiceNow (NYSE: NOW) were among the top performers. Company founder Jim Koch attributed the big gains to "key innovations, the quality of our products and our strong brands, as well as successful sales execution and support from our distributors." As we've seen in past periods, a substantial portion of Aaron's growth came from its progressive leasing segment, which works with third-party retail partners in around 20,000 locations across the U.S. to offer lease-purchase solutions.
|
Boston Beer (NYSE: SAM), Aaron's (NYSE: AAN), and ServiceNow (NYSE: NOW) were among the top performers. Raise a glass to Boston Beer's earnings Shares of Boston Beer climbed more than 8% after the maker of Sam Adams reported its first-quarter financial results. Aaron's owns the rent-to-own segment Rent-to-own retail specialist Aaron's saw its stock climb 11% following the release of its first-quarter financial report.
|
Boston Beer (NYSE: SAM), Aaron's (NYSE: AAN), and ServiceNow (NYSE: NOW) were among the top performers. Raise a glass to Boston Beer's earnings Shares of Boston Beer climbed more than 8% after the maker of Sam Adams reported its first-quarter financial results. Aaron's owns the rent-to-own segment Rent-to-own retail specialist Aaron's saw its stock climb 11% following the release of its first-quarter financial report.
|
Boston Beer (NYSE: SAM), Aaron's (NYSE: AAN), and ServiceNow (NYSE: NOW) were among the top performers. Raise a glass to Boston Beer's earnings Shares of Boston Beer climbed more than 8% after the maker of Sam Adams reported its first-quarter financial results. Aaron's owns the rent-to-own segment Rent-to-own retail specialist Aaron's saw its stock climb 11% following the release of its first-quarter financial report.
|
8998.0
|
2019-04-25 00:00:00 UTC
|
Financial Sector Update for 04/25/2019: LAZ,DLX,AAN,ADS
|
AAN
|
https://www.nasdaq.com/articles/financial-sector-update-for-04-25-2019%3A-lazdlxaanads-2019-04-25
|
nan
|
nan
|
Top Financial Stocks
JPM +0.22%
BAC +0.52%
WFC +0.08%
C +0.22%
USB +0.39%
Financial stocks rebounded moderately in afternoon trading, including a more than 0.1% advance for the NYSE Financial Index while shares of financial companies in the S&P 500 also were almost 0.4%. The Philadelphia Housing Index was dropping nearly 1.3%.
Among financial stocks moving on news:
(+) Lazard (LAZ) was nearly 8% higher late Thursday after the asset management and advisory firm reported Q1 of $0.87 per share, falling 31% compared with its $1.26 per share profit during the year-ago period but still exceeding the $0.69 per share Street view. Revenue also declined, slipping 14% year-over-year to $723.9 million but also topping the Capital IQ consensus expecting $598.7 million for the three months ended March 31.
In other sector news:
(+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Revenue climbed to $1.01 billion compared with $954.8 million during the same quarter last year and also exceeding the $991.1 million analyst mean.
(-) Alliance Data Systems (ADS) fell 5.5% on Thursday after reporting core Q1 net income of $3.72 per share, lagging its $3.95 per share profit during the year-ago period and also trailing the Capital IQ consensus expecting $4.05 per share.
(-) Deluxe Corp (DLX) turned over 8% lower this afternoon, giving back a 7% advance. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share. Excluding additional items, its adjusted Q1 EPS rose to $1.54, the company said, while revenue rose 1.5% over the year-ago period to $499.1 million and also topped the $497.2 million Street view.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. (-) Deluxe Corp (DLX) turned over 8% lower this afternoon, giving back a 7% advance. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Among financial stocks moving on news: (+) Lazard (LAZ) was nearly 8% higher late Thursday after the asset management and advisory firm reported Q1 of $0.87 per share, falling 31% compared with its $1.26 per share profit during the year-ago period but still exceeding the $0.69 per share Street view. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Among financial stocks moving on news: (+) Lazard (LAZ) was nearly 8% higher late Thursday after the asset management and advisory firm reported Q1 of $0.87 per share, falling 31% compared with its $1.26 per share profit during the year-ago period but still exceeding the $0.69 per share Street view. (-) Alliance Data Systems (ADS) fell 5.5% on Thursday after reporting core Q1 net income of $3.72 per share, lagging its $3.95 per share profit during the year-ago period and also trailing the Capital IQ consensus expecting $4.05 per share.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Among financial stocks moving on news: (+) Lazard (LAZ) was nearly 8% higher late Thursday after the asset management and advisory firm reported Q1 of $0.87 per share, falling 31% compared with its $1.26 per share profit during the year-ago period but still exceeding the $0.69 per share Street view. Revenue also declined, slipping 14% year-over-year to $723.9 million but also topping the Capital IQ consensus expecting $598.7 million for the three months ended March 31.
|
8999.0
|
2019-04-25 00:00:00 UTC
|
Financial Sector Update for 04/25/2019: DLX,AAN,ADS
|
AAN
|
https://www.nasdaq.com/articles/financial-sector-update-for-04-25-2019%3A-dlxaanads-2019-04-25
|
nan
|
nan
|
Top Financial Stocks
JPM +0.25%
BAC +0.65%
WFC +0.57%
C +0.21%
USB +0.56%
Financial stocks were higher in afternoon trading, including a 0.2% gain for the NYSE Financial Index while shares of financial companies in the S&P 500 also were ahead by 0.5%. The Philadelphia Housing Index was down 1.3%.
Among financial stocks moving on news:
(+) Deluxe Corp (DLX) turned over 8% lower this afternoon, giving back a 7% advance. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share. Excluding additional items, its adjusted Q1 EPS rose to $1.54, the company said, while revenue rose 1.5% over the year-ago period to $499.1 million and exceeded the $497.2 million Street view.
In other sector news:
(+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Revenue climbed to $1.01 billion compared with $954.8 million during the same quarter last year and also exceeding the $991.1 million analyst mean.
(-) Alliance Data Systems (ADS) fell 4.5% on Thursday after reporting core Q1 net income of $3.72 per share, lagging its $3.95 per share profit during the year-ago period and also trailing the Capital IQ consensus expecting $4.05 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Among financial stocks moving on news: (+) Deluxe Corp (DLX) turned over 8% lower this afternoon, giving back a 7% advance. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. The check printer Thursday reported non-GAAP Q1 net income of $1.14 per share, excluding restructuring and CEO transition costs and exceeding the Capital IQ consensus expecting $1.11 per share. Excluding additional items, its adjusted Q1 EPS rose to $1.54, the company said, while revenue rose 1.5% over the year-ago period to $499.1 million and exceeded the $497.2 million Street view.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Financial stocks were higher in afternoon trading, including a 0.2% gain for the NYSE Financial Index while shares of financial companies in the S&P 500 also were ahead by 0.5%. (-) Alliance Data Systems (ADS) fell 4.5% on Thursday after reporting core Q1 net income of $3.72 per share, lagging its $3.95 per share profit during the year-ago period and also trailing the Capital IQ consensus expecting $4.05 per share.
|
In other sector news: (+) Aaron's (AAN) rose 11% after the specialty lender recorded non-GAAP Q1 earnings of $1.08 per share, improving on an $0.81 per share adjusted profit during the year-ago period and beating the Capital IQ consensus by $0.15 per share. Financial stocks were higher in afternoon trading, including a 0.2% gain for the NYSE Financial Index while shares of financial companies in the S&P 500 also were ahead by 0.5%. Excluding additional items, its adjusted Q1 EPS rose to $1.54, the company said, while revenue rose 1.5% over the year-ago period to $499.1 million and exceeded the $497.2 million Street view.
|
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.