Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: The question is how big? Analysts say they were looking for $0.85 per share this quarter, and Rent-A-Center says it earned $0.79 -- which doesn't sound too bad. Then again, RAC's number was of the pro forma variety; under GAAP accounting standards, the company was forced to admit it only earned $0.69.
Now what: Interestingly, RAC rival Aaron's
This being the case, if you're looking at Rent-A-Center today, and thinking the stock looks attractive at 11.6 times earnings, with 11.8% growth in the future ... think again. This stock may not be as cheap as it looks.
Think Rent-A-Center is one to own? Add it to your watchlist and find out.