Will PROG Holdings (PRG) Be Able to Rebound?

2 months ago 21

Soumya Eswaran

Tue, Apr 15, 2025, 5:50 AM 3 min read

Investment absorption company Vulcan Value Partners recently released its first-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. The archetypal 4th experienced the instrumentality of volatility. The companies’ absorption teams expressed a much cautious presumption pursuing the caller election. Optimism has fixed mode to uncertainty astir tariffs and imaginable impacts connected earnings, inflation, and economical growth. In the quarter, the Large Cap Composite returned -2.1% nett of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For much accusation connected the fund’s champion picks successful 2025, delight cheque its apical 5 holdings.

In its archetypal 4th 2025 capitalist letter, Vulcan Value Partners emphasized stocks specified arsenic PROG Holdings, Inc. (NYSE:PRG). Based successful Draper, Utah, PROG Holdings, Inc. (NYSE:PRG) is simply a fiscal exertion holding company. The one-month instrumentality of PROG Holdings, Inc. (NYSE:PRG) was -1.70%, and its shares mislaid 19.05% of their worth implicit the past 52 weeks. On April 14, 2025, PROG Holdings, Inc. (NYSE:PRG) banal closed astatine $25.50 per stock with a marketplace capitalization of $1.035 billion.

Vulcan Value Partners stated the pursuing regarding PROG Holdings, Inc. (NYSE:PRG) successful its Q1 2025 capitalist letter:

There was 1 worldly detractor: PROG Holdings Inc. PROG Holdings provides lease-to-own financing solutions for non-prime borrowers done a nationalist retailer spouse network. In the 2nd fractional of 2024, 1 of its largest customers, Big Lots, declared bankruptcy and agreed to beryllium bought by a backstage equity firm. In December, the merchantability was cancelled, forcing Big Lots to determination guardant with liquidation. We judge PROG’s banal terms diminution was acold greater than the interaction connected origination volumes by Big Lots’ closure. Further, we expect the institution volition beryllium capable to offset these mislaid volumes with stock gains astatine existing retailer partnerships and caller lawsuit wins.

A lawsuit staring with delight astatine the assortment of furniture, appliances, and different items successful the store.

PROG Holdings, Inc. (NYSE:PRG) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge money portfolios held PROG Holdings, Inc. (NYSE:PRG) astatine the extremity of the 4th fourth which was 27 successful the erstwhile quarter. While we admit the imaginable of PROG Holdings, Inc. (NYSE:PRG) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.