Upbound Group UPBD shares ended the last trading session 8.2% higher at $27.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.5% gain over the past four weeks.
Upbound Group continues to benefit from strong momentum in its Acima segment, where consistent marketplace growth and disciplined underwriting have supported improved efficiency and top-line expansion. The Brigit acquisition is proving strategically valuable, offering a scalable fintech platform with high margins and strong user growth, further enhancing Upbound’s digital capabilities.
This company that leases furniture and appliances with an option to buy is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +6.3%. Revenues are expected to be $1.14 billion, up 7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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, finished the last trading session 0.9% higher at $123.35. MGRC has returned 2.3% over the past month.
McGrath's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.83. Compared to the company's year-ago EPS, this represents a change of -2.1%. McGrath currently boasts a Zacks Rank of #2 (Buy).
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Upbound Group, Inc. (UPBD): Free Stock Analysis Report McGrath RentCorp (MGRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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