Rent-A-Center: A Compelling Value Case With Strong Free Cash Flow

Dec. 12, 2022 1:22 PM ETUpbound Group, Inc. (UPBD) StockXRT, UPBD6 Comments

Summary

  • The consumer is constrained right now, and 2023 could bring more issues.
  • I see much of that pessimism priced into shares of Rent-A-Center.
  • With high free cash and a big yield, this risky play might pay off.

RAC Rent-A-Center business exterior in Houston, TX.

Brett_Hondow/iStock Editorial via Getty Images

Retail stocks are not off to a hot start to December relative to the S&P 500. The group is down a few percentage points, as measured by the SDPR S&P Retail ETF (XRT

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