Rent-A-Center (NASDAQ:$RCII) has seen its Relative Strength – or RS – rise from 67 to 71 on Monday. Despite this, however, the company is still just shy of 80, which is the standard to beat for companies that are on the rise.
The RS ranges from 1-99 and illustrates the company’s success on the market as compared to other companies. A higher rating is an indicator of a company about to go on the rise. At over 90, the stock is expected to hit a big price run.
Determining the factor is done by looking at the stock’s performance over the last 52 weeks and comparing it to other stocks on the market. Therefore, a 99 RS would mean that the stock outperformed 99% of the other stocks on the market.
The RS can be useful in determining if the company is a market leader or a market laggard.
The company has seen growth slightly drop off last quarter, from -92% to -102%. Despite this, revenue gains have increased from -11% to -10%. In the Commercial-Services Leasing Industry, RCII ranks 19th, being beaten out by a top five that includes United Rentals (NYSE:$URI), Triton International (NYSE:$TRTN), and McGrath Rental Corps (NASDAQ:$MGRC).
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