Rent-A-Center Inc (NASDAQ:$RCII) is a rent-to-own operator located across North America. Recently, the stock opened at $11.12. So what can we learn from applying some key metrics to the company? Let’s take a look.
Relative Strength Index
The Relative Strength Index is a momentum oscillator that measures the speed and change of stock price movements. Originally developed by J. Welles Wilder, the RSI runs from 0 to 100, where a score above 70 indicates an overbought stock, and a score below 30 indicates an oversold stock. This can useful for spotting failure swings and divergences. Rent-A-Center currently has a 3 day RSI of 38.29, a 7 day RSI of 41.55, and a 14 day RSI of 40.75.
Moving Averages
Moving Averages are useful in identifying stock performance over a longer period. They can help to spot peaks and valleys when charting a stock. They also filter out the daily noise of stock trades. They can also indicate a trend, such as when a stock trades above its moving average, or on a downtrend if the stock moves below the moving average. Currently, Rent-A-Center has a 7 day MA of $11.39.
Average Directional Index
The Average Directional Index is an oscillating indicator that helps to gauge trend strength. It runs from 0 to 100. A score of 0-20 would indicate no trend, a score of 20-25 would indicate no clear trend, a score of 25-50 would indicate a strong trend, a score of 50-75 would indicate a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The company currently has a 14-day ADX of 17.46, indicating no trend.
Commodity Channel Index
Originally developed for the commodities market, the Commodity Channel Index can be applied to stocks to identify the start and finish of market trends. A reading of close to or above +100 would indicate more buying and a possible overbought situation, whereas a rating of close to or below -100 would indicate more selling or a possible oversold situation. Rent-A-Center currently sits at a 14 day CCI of 49.95.
So What’s the Bottom Line?
Going into the second half of the year, investors may be looking to evaluate their portfolios. The above metrics can be useful for identifying the right and wrong times to buy or sell a stock. When combined with fundamental analysis, technical indicators can provide a strong insight into market trading.
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