Opinions
The Panic-Proof Portfolio (Stockchase Research)
PROG Holdings
PRG-Q
PAST TOP PICK
Apr 24, 2025
N/A
Stock price when the opinion was issued
Technology
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A fintech, sort of like Affirm in the buy-now, pay-later business. A new stock. PRG gets most of its business from progressive leasing, offering lease-to-own transactions to those with not-so-good credit via retailers. It has a lot going for it, though fintechs are hated now. Their technology can identify good borrowers even when they have bad credit scores. Its most recent quarter reported disappointing sales and cut their full-year forecast. Problem is they leant people with bad credit, but also people are flush with cash, so don't need PRG's services. It's cheap, though, at under 11x 2022's PE.
Technology
TOP PICK
Stockchase Research Editor: Michael O’Reilly
PRG is in the business of leasing furniture and electronics to retail customers. Recent reported earnings showed a 9% increase in lease revenues and a 200% increase in net income. Analysts forecast annual EPS growth over 11% over the next five years. It trades at 7x earnings, under 2x book and supports a ROE of 31%. We recommend setting a stop-loss at $25, looking to achieve $43 — upside potential over 50%. Yield 1.7%
(Analysts’ price target is $43.33)
Technology
Our PAST TOP PICK with PRG has triggered its stop at $25. To remain disciplined, we recommend covering the position at this time.