RCII forming pennant, likely to run again

2019년 9월 27일

RCII has a 9.3/10 Equity StarMine Summary Score, has beaten analyst estimates on its last 5 earnings reports, and has grown earnings by 113% this year. Its P/E of 12.3 is quite attractive for a growing company.

Here's S&P Capital IQ's analysis of the fundamentals, scored out of 100:

Valuation: 99/100 (extremely undervalued)
Quality: 98/100 (extremely high quality)
Growth stability: 97/100 (extremely stable)
Financial health: 95/100 (extremely healthy)

Man. You don't see numbers like those every day. About the only thing RCII *doesn't* have going for it is that rentals aren't a very sexy sector. This isn't going to run like a Tesla or a Beyond Meat. Still, this is a very solid stock that should climb out of its pennant soon, in my opinion. Set a stop loss beneath the pennant bottom.

Edit to add: 1) several directors added shares on September 6, which I assume was part of their compensation plan, 2) RCII's price stayed stable after its dividend, which is always a good sign, 3) RCII got upgraded by Recognia today after the algorithm detected a breakout. I think this was a false positive, but it could move the stock price up anyway.

2019년 10월 3일

노트

RCII broke downward out of its pennant today, perhaps as investors exited defensive investments like RCII for more aggressive ones. The stock held an important support level, so this doesn't necessarily mean the stock will drop hard, but it is bearish in the short term. Here's a new parallel channel to watch: