3 solid growth stocks perfect for retirees | Personal finance
The company earns money by charging high prices for its goods, setting high interest rates and fees on its financing, and re-letting items returned to it. For example, choosing a refrigerator at random on its site, the price of the “same cash” Rent-A-Center is $ 1,763.52, compared to $ 1,399 for an identical model at a familiar national retailer. For consumers who don’t pay cash, the Rent-A-Center price is $ 29.99 per week for 98 weeks, or $ 2,939.02 in total.
With inflation lately higher than it has been for many years, the latest jobs report showing surprisingly low numbers of filled jobs and consumer confidence plummeting, the specter of stagflation made a comeback. Add to that it looks like the Federal Reserve is gearing up to start crunching credit again, and you’ve got all the conditions for a near-perfect economic storm. And the people on the brink are just the demographic that tends to use Rent-A-Center’s services.
Analysts expect Rent-A-Center to grow more than 30% annualized earnings over the next five years, compared to flat earnings over the past five. The company is now trading at around 15 times its current profits, a valuation that will look like a good deal if this expected growth materializes.