Upbound Group (UPBD – Free Report) shares rallied 8.8% in the last trading session to close at $22.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 18.2% loss over the past four weeks.
U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Acima, Upbound Group’s virtual lease-to-own (LTO) business, continues to be a key growth driver, reflecting the strength of its business model and increasing consumer adoption.
This company that leases furniture and appliances with an option to buy is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of +19%. Revenues are expected to be $1.12 billion, up 2.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Upbound Group, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on UPBD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Upbound Group is a member of the Zacks Financial – Leasing Companies industry. One other stock in the same industry, McGrath (MGRC – Free Report) , finished the last trading session 5.7% higher at $107.22. MGRC has returned -8.6% over the past month.
McGrath’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.02. Compared to the company’s year-ago EPS, this represents a change of +9.7%. McGrath currently boasts a Zacks Rank of #4 (Sell).
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