Why I Think Aaron's Has Upside Potential

Nov. 10, 2022 11:30 AM ETThe Aaron's Company, Inc. (AAN)2 Comments

Summary

  • Due to the current increase in write-offs and adverse economic conditions, the stock has dropped more than 72% from its high, despite a robust and growing business model.
  • The business model is substantially strong and unique, and as the economy stabilizes, the company can regain its earnings power.
  • I believe, at this price, the stock has substantial upside potential with a minimum risk of long-term capital loss.

Aaron"s Rent to Own retail store. Aaron"s allows people to rent electronics and furniture with an option to purchase.

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Aaron's Company, Inc. (NYSE:AAN) is a leading provider of lease-to-own and purchase solutions for furniture, appliances, consumer electronics, and accessories. With the main focus on overlooked and underserved customers, the company provides services to less credit-worthy customers through

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This article was written by

Currently, I am working on ben Graham's idea of value investing, and I want my readers to benefit from my ideas. I will work harder to find bargain opportunities for my readers.I will not give a buy rating unless the decision seems rational, fairly undervalued, and provides above-average returns. Also, I will always seek a significant margin of safety and make sure that the risk of long-term capital loss remains low. As Buffett says "you are not going to be right because many people agree with you, you are going to be right only when your thesis is based on facts and rational understanding."*Closely associated with Dhanashree Shinde.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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