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

Upbound Group (UPBD), a lease-to-own provider, is highlighted as a strong momentum stock by Zacks, currently holding a #2 (Buy) rank with a VGM Score of A. UPBD's shares have risen 11.3% in the past four weeks, and the consensus earnings estimate for fiscal 2025 has increased by $0.06 to $4.16 per share following upward revisions from three analysts; the company also boasts an average earnings surprise of 4.8%.

Analysis

Upbound Group, Inc. (UPBD), a lease-to-own provider, demonstrates strong momentum characteristics according to Zacks Investment Research. The company currently holds a Zacks Rank of #2 (Buy) and an overall VGM Score of A, indicating a favorable combination of value, growth, and momentum. Specifically, UPBD scores a B for Momentum, supported by an 11.3% increase in its share price over the past four weeks. Further bolstering its positive outlook, three analysts have revised their earnings estimates upward for fiscal 2025 within the last 60 days, leading to a $0.06 increase in the Zacks Consensus Estimate to $4.16 per share. Additionally, UPBD has a track record of exceeding earnings expectations, with an average earnings surprise of 4.8%. The combination of a strong Zacks Rank, high Style Scores, positive earnings estimate revisions, and recent price appreciation suggests a heightened probability of near-term market outperformance based on the Zacks methodology.

Key Decisions for Investors

• Investors, particularly those with a momentum-focused strategy, should consider UPBD given its #2 (Buy) Zacks Rank, A VGM Score, B Momentum Score, and recent upward earnings revisions.
• Monitor ongoing earnings estimate revisions and price trends for UPBD, as these are key drivers highlighted by the Zacks framework for potential outperformance.
• The confluence of a strong Zacks Rank and favorable Style Scores (A or B) in UPBD aligns with Zacks' criteria for identifying stocks with a higher probability of success in the near term.