Why Upbound Group (UPBD) is a Top Growth Stock for the Long-Term

Upbound Group (UPBD), a lease-to-own provider, is highlighted as a growth stock by Zacks, carrying a Zacks Rank #2 (Buy) and a VGM Score of A. The company's Growth Style Score of A is supported by a 9.1% forecasted year-over-year earnings growth for the current fiscal year, with the consensus estimate for fiscal 2025 rising to $4.18 per share following upward revisions from four analysts.

Analysis

Upbound Group (UPBD), a lease-to-own provider, demonstrates strong growth potential according to Zacks Investment Research, holding a Zacks Rank #2 (Buy) alongside top 'A' grades for both its VGM and Growth Style Scores. This robust profile is supported by a projected 9.1% year-over-year earnings growth for the current fiscal year and positive analyst sentiment, evidenced by four upward earnings estimate revisions for fiscal 2025 in the past 60 days, which increased the Zacks Consensus Estimate by $0.08 to $4.18 per share. The company has also historically delivered an average earnings surprise of 4.8%. Zacks' methodology suggests that combining a high Zacks Rank with strong Style Scores, as seen with UPBD, increases the probability of the stock outperforming the market, referencing the historical success of its rating system where top-ranked stocks have significantly surpassed S&P 500 returns.

Key Decisions for Investors

• Consider UPBD for growth-oriented portfolios due to its Zacks Rank #2 (Buy) and 'A' grades for both VGM and Growth Style Scores, which Zacks correlates with a higher probability of market outperformance.
• The forecasted 9.1% year-over-year earnings growth for the current fiscal year, coupled with four upward analyst revisions for fiscal 2025 earnings estimates (now $4.18 per share), reinforces the positive growth thesis.
• Investors should monitor the persistence of positive earnings estimate revisions and the company's ability to meet its stated growth targets to validate the ongoing investment case.