During the last three months, 5 analysts shared their evaluations of Aarons (NYSE:AAN), revealing diverse outlooks from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $9.66, along with a high estimate of $10.10 and a low estimate of $8.00. This current average has increased by 9.77% from the previous average price target of $8.80.
Understanding Analyst Ratings: A Comprehensive Breakdown
The standing of Aarons among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Kyle Joseph | Jefferies | Lowers | Hold | $10.10 | $11.00 |
| Anthony Chukumba | Loop Capital | Raises | Hold | $10.00 | $8.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $10.10 | $8.00 |
| Hoang Nguyen | TD Cowen | Raises | Hold | $10.10 | $8.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $8.00 | $9.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Aarons. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Aarons compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Capture valuable insights into Aarons's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
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Delving into Aarons's Background
The Aarons Co Inc is a specialty retailer that has developed a lease-to-own model. It serves customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
Aarons: A Financial Overview
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Challenges: Aarons's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -7.73%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.77%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Aarons's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.09%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Aarons's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.79%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 1.05, Aarons faces challenges in effectively managing its debt levels, indicating potential financial strain.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.