Type to search

Wealthpop News

Is PROG Holdings (PRG) Headed for a Breakdown?

Share

PROG Holdings Inc. (PRG) is a provider of lease-purchase solutions through more than 30,000 retail partner locations in 46 states and the District of Columbia, including e-commerce merchants. The firm operates in two segments Progressive Leasing and Vive Financial…

PROG Holdings Inc. (PRG) had a fairly strong second quarter where gross merchandise value for their Progressive Leasing segment grew 25.2% year over year, driven by the continued scaling of large national accounts and increased penetration in e-commerce. 

PRG also recently acquired Four Technologies, a Miami-based buy now pay later company that allows consumers to pay for merchandise through 4 interest-free installments. 

The company had $138 million in cash as of the end of the second quarter compared to no short-term debt. Management is highly efficient with a return on equity of 28.1%. This has led to a Quality Grade of B in our POWR Ratings system. However, analysts expect earnings to fall 50% year over year in the current quarter.

The stock looks undervalued with a trailing P/E of 11.54 and a forward P/E of 12.76. The stock has been showing bearish momentum since late August as shown in the chart below.

Take a look at the 1-year chart of PRG below with added notations…

See chart and continue reading at STOCKNEWS.com

Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group.

My Chartered Market Technician (CMT) designation substantiates me as an expert in areas such as the technical analysis of stock trends, market indicators, cycles, price patterns, Elliot Wave principles, Candlestick charting, analyzing financial trends and behaviors, portfolio strategies, and forecasting future price movements. With my straightforward approach to simple, systematic trading, students learn how to strategically assess buy signals and market entry timing, establishment and management of stop losses, and how to employ a simple and disciplined trading approach that creates profits.

  • 1
×

It's not goodbye, it's hello Magnifi!

You are now leaving a Magnifi Communities' website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi