Upbound Group, Inc. (NASDAQ: UPBD) is a key player in the technology sector, specifically within the software applications industry. With a market capitalization of $1.42 billion, the company has carved a niche in the lease-to-own market, offering a diverse range of consumer goods such as electronics, appliances, and furniture. Operating through well-known brands like Rent-A-Center and Acima, Upbound Group extends its services across the United States, Puerto Rico, and Mexico, reaching consumers both in physical stores and through virtual channels.
As of the latest trading session, UPBD’s stock is priced at $24.54, reflecting a slight dip of 0.02% or $0.40. Despite this minimal decrease, the stock’s current price remains within its 52-week range of $19.90 to $37.78. Notably, analysts have set an average target price of $36.00 for UPBD, indicating a significant potential upside of 46.7% from its current level.
One of the standout features of Upbound Group is its attractive dividend yield of 6.36%, supported by a payout ratio of 71.36%. This makes the stock particularly appealing for income-focused investors seeking steady returns in addition to capital appreciation.
From a valuation perspective, UPBD’s forward P/E ratio stands at an impressive 4.78, suggesting the stock may be undervalued relative to its earnings potential. However, other traditional valuation metrics such as the trailing P/E, PEG ratio, and Price/Book are not available, which may pose a challenge for investors seeking comprehensive valuation insights.
Performance metrics reveal a robust revenue growth rate of 7.30%, complemented by an EPS of 2.13 and a commendable return on equity of 19.18%. These figures underscore the company’s ability to generate profits and offer a promising outlook for continued financial health.
Examining the technical indicators, UPBD is showing strength with a 50-day moving average of $23.46, slightly below the current price, and a more distant 200-day moving average of $27.66. The RSI (14) is at 72.11, indicating the stock is potentially overbought in the short term. The MACD of 0.21, against a signal line of 0.35, further supports this bullish momentum.
Investors should also consider the analyst ratings, which are predominantly positive with 6 buy and 2 hold recommendations, and no sell ratings. This consensus suggests a favorable outlook from the investment community, bolstered by the stock’s operational performance and market positioning.
Founded in 1960 and headquartered in Plano, Texas, Upbound Group has an extensive history and a strategic focus on providing lease-to-own services to consumers who might not qualify for traditional financing. This unique market approach, combined with a strong brand portfolio, positions Upbound Group as a resilient player in the consumer finance landscape.
For investors, the potential upside of 46.7% combined with a solid dividend yield makes Upbound Group, Inc. a compelling consideration for those looking to diversify their portfolios with exposure to the lease-to-own market. As always, it is advisable to conduct thorough due diligence and consider market conditions before making investment decisions.
