Here's Why Upbound Group (UPBD) is a Strong Growth Stock

Upbound Group (UPBD), a lease-to-own provider, is highlighted as a strong growth stock by Zacks, holding a #2 (Buy) rank and a VGM Score of A. The company's Growth Style Score of A is supported by a forecast of 8.6% year-over-year earnings growth for the current fiscal year, with the consensus estimate for fiscal 2025 rising $0.06 to $4.16 per share following upward revisions by three analysts.

Analysis

Upbound Group (UPBD), a lease-to-own provider formerly known as Rent-A-Center, Inc., is highlighted by Zacks as a strong growth stock, currently holding a Zacks Rank #2 (Buy). This positive ranking is further substantiated by a VGM Score of A, indicating favorable overall investment characteristics, and a specific Growth Style Score of A. The company's growth prospects are underpinned by a forecasted year-over-year earnings growth of 8.6% for the current fiscal year. Analyst sentiment towards UPBD appears robust, with three analysts revising their earnings estimates upwards for fiscal 2025 within the past 60 days. Consequently, the Zacks Consensus Estimate for fiscal 2025 earnings per share has increased by $0.06 to $4.16. Adding to this positive profile, UPBD has a track record of exceeding expectations, evidenced by an average earnings surprise of 4.8%. The Zacks methodology suggests that stocks with a #1 or #2 Rank combined with Style Scores of A or B have a higher probability of success, positioning UPBD favorably based on these criteria.

Key Decisions for Investors

• Investors with a growth-focused strategy should consider Upbound Group (UPBD) based on its strong Zacks Rank #2 (Buy), A-rated Growth and VGM Style Scores, and positive earnings revision trends.
• It is advisable to monitor UPBD's future earnings reports and any subsequent analyst estimate revisions, as these are key factors influencing the Zacks Rank and the stock's investment thesis.
• Given the combination of positive fundamental indicators and analyst outlook presented, UPBD warrants inclusion on a watchlist for potential investment, particularly for those seeking exposure to companies with strong near-term outperformance potential according to the Zacks model.