Vanguard’s VTWO. The Russell 2000. It’s a name that washes over the market like cheap gin. Plenty of folks are buying in, chasing the small-cap dream. Low fees, sure. Vanguard knows how to clip coupons. Three bucks for every ten grand held? A pittance, really. But it’s the index itself that hums with a faint, dangerous energy.
The Russell 2000. The bottom two-thirds of the Russell 3000. Sounds glamorous, doesn’t it? Trading at eighteen times earnings? Not exactly a fire sale. But compared to the blue chips, it’s a relative bargain. Like choosing between a dented fender and a totaled chassis.
Momentum’s been kind to these little guys. After years of being left out in the rain, they’ve finally decided to dance. But the market has a long memory, and a shorter fuse. I needed something with a pulse, something that wasn’t just riding the wave. Something…sharper.
I started digging. The VTWO is solid, no argument. But I wanted a single name, a dark horse in the stable. I set some rules. Yields had to beat the index – 1.1% was the line in the sand. That shaved off two-thirds of the contenders. Then I tossed out anything bleeding red ink or sporting an earnings multiple above eighteen. Cut the field in half again. A ruthless winnowing. Like separating the wheat from the dust.
Mostly financials remained. Not surprising. They always look cheap, those guys. Like a pawn shop full of broken promises. One last filter: forward P/E under five. That left me with four. Four shadows in the gloom. And one of them…well, one of them had a story. Upbound. [UPBD 0.15%]. I’d seen the name before, a ghost in the financial reports.
A New Lease on Life
Rent-A-Center. That was the old name. A drab, forgotten storefront. Now it’s Upbound. They’ve rebranded, polished the brass, and expanded the game. They’re not just renting furniture anymore. They’re building an empire on the backs of those who can’t quite afford the good life.
Acima. That’s their platform. They let other retailers offer lease-to-own financing. Suddenly, Upbound isn’t limited to 1,700 stores. They’ve got 11,000 retailers in their pocket. And then there’s Brigit. A smartphone app. Helps folks with budgeting, credit scores, even small cash advances. Twelve million users. A digital lifeline for those walking a tightrope.
It all connects. Leasing furniture, financing appliances, budgeting apps. It’s a chain of necessity for those living on the edge. A way to access the essentials when the bank says no. Acima expands the reach. Brigit educates the masses. Upbound collects the profits. A neat little system.
Revenue is climbing. Earnings are beating expectations. And the dividend? A hefty 7.6%. They can afford it. Earnings are expected to hit $4.65 a share. That’s a forward P/E of just 4.4. It’s practically giving money away. Of course, there’s a reason for that low valuation. Leverage is a concern. The stock took a beating in ’22 and ’23. But I see a turnaround in the making. A dark horse with a fighting chance. And it just happens to be hiding in the Russell 2000.
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2026-02-11 18:12