Aaron’s (AAN) Is a Good Buy Here

One stock that I’ve been watching closely is Aaron’s ($AAN), the lease-to-own retailer. The company came in below expectations on their last two earnings reports and I think that has unduly hurt the shares. The stock closed on Friday at $28.72 but I think the shares are worth close to $35.

A few weeks ago, with the first-quarter earnings report, Aaron’s lowered their full-year forecast. The old range was $2.25 to $2.41 per share, and the new range is $2.11 to $2.23 per share. Make no mistake, that’s quite a hit. For Q2, AAN expects earnings to range between 45 and 49 cents per share. The Street’s consensus was for 54 cents per share.

The company has had some short-term problems but nothing it can’t fix. The stock is a good value here.

Posted by on May 20th, 2013 at 10:48 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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