Rent-A-Center trending higher, bullish signal generated
Rent-A-Center (Nasdaq: RCII) rents household durable goods to customers and seems like more of a retail-oriented company, but it is actually classified as an industrial company. Regardless of the industry classification, the stock has been performing very well over the last three months.
We see on the daily chart that the volatility on Rent-A-Center increased dramatically at the end of December and initially fell sharply. Since that time, the stock has rallied sharply and tacked on 90% from the low on December 18 through the high on March 14.
What jumped out to me on the chart was how the lows from late December, January, and February all connected to form an upward sloped trend line. The stock hit that trend line last week and it has since bounced back a little. The stock’s daily stochastic readings reached oversold territory last week and made a bullish crossover on March 25.
The Tickeron AI Trend Prediction tool generated a bullish signal on Rent-A-Center on March 22 and that signal carried a confidence level of 78%. There have been 65 previous signals on the stock and those signals have been accurate 60% of the time. This signal calls for a gain of at least 2% in the next week.
Rent-A-Center’s fundamentals are mixed in various ways. The earnings for the company have been flat over the past three years, but they were up 185% in the most recent quarter. Sales were declining at a rate of 8% per year over the last three years, but they grew by 4% in the last quarterly report. Even the management efficiency measurements are mixed. The return on equity is above average at 20.7%, but the profit margin is below average at 2.8%.
Momentum Indicator for UPBD turns positive, indicating new upward trend
UPBD saw its Momentum Indicator move above the 0 level on June 05, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned positive. In of the 82 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
UPBD moved above its 50-day moving average on May 27, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UPBD advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 201 cases where UPBD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for UPBD moved out of overbought territory on June 11, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for UPBD turned negative on June 18, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UPBD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
UPBD broke above its upper Bollinger Band on June 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.399) is normal, around the industry mean (31.816). P/E Ratio (210.500) is within average values for comparable stocks, (164.257). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.724). Dividend Yield (0.040) settles around the average of (0.030) among similar stocks. P/S Ratio (0.482) is also within normal values, averaging (61.826).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. UPBD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UPBD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of consumer goods on rental purchase arrangements
Industry PackagedSoftware
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