Upbound (UPBD) Stock

PLANO, Texas--(BUSINESS WIRE)--Upbound Group, Inc. (“Upbound” or the “Company”) (NASDAQ: UPBD), an omni-channel platform company committed to elevating financial opportunity for all, has announced an agreement with Google Cloud to deliver advanced AI solutions designed to significantly improve the experience for customers, as well as expand customer offerings across Upbound's Acima Leasing® and Rent-A-Center® lines of business. Through this collaboration, Upbound will tap Google Cloud's Vertex.

Upbound Group, Inc. has a proven business model with consistent positive net income and free cash flow, making it a profitable investment. The recent sale of Rent-A-Center stores and reduced net leverage ratio could enhance valuation and attract new investors. The company is well-positioned for acquisitions, marketing investments, and dividend growth, supported by strong cash flow and financial health.

Upbound Group (UPBD) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.79 per share a year ago.

Upbound Group, Inc. appears undervalued due to its expanding retail network, proprietary automated decision engine, and significant market opportunity among U.S. consumers lacking traditional credit access. The company's flexible lease-purchase agreements, better-than-expected EPS, and revenue growth, along with a low forward earnings multiple, indicate strong future FCF growth potential. Key business drivers include increased retail partner locations, robust automated customer selection processes, rising e-commerce revenue, and effective marketing strategies.

Shares are down this year despite solid performance in the underlying business. Leading indicators point to growth and profitability remaining strong in upcoming quarters. The risks I see with this investment are related to its debt and ongoing litigation.

Upbound Group (UPBD), AES Corporation (AES), Arch Capital (ACGL), PulteGroup (PHM) and Banco de Chile (BCH) are some of the stocks with high ROE to profit as markets inch closer to all-time highs reached in mid-July.

The consensus price target hints at a 27.3% upside potential for Upbound Group (UPBD). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.

Upbound Group (UPBD) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Upbound Group (UPBD) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.