Upbound Group (UPBD) Could Be 28% Undervalued After Russell Index Removal
Upbound Group, Inc. UPBD | 0.00 |
Upbound Group (UPBD) was removed from several Russell indices on June 27, 2026. This type of index change can influence index-tracking flows and prompt investors to reassess how the stock fits in diversified portfolios.
At a share price of $20.51, Upbound Group has seen a 12.26% 1 month share price return and an 18.21% year to date share price return, but its 1 year total shareholder return is down 15.12%. This suggests that recent momentum contrasts with weaker longer term results as the Russell index removals prompt investors to reassess risk.
If this kind of index driven move has you thinking about where else capital could go, it may be a good time to hunt for ideas in a focused screener such as 19 top founder-led companies
For Upbound Group, recent index exits and a mixed return profile put the focus squarely on price. Is the current level a reasonable point to commit fresh capital, or does it make more sense to be patient and wait for a different entry?
Most Popular Narrative: 28% Undervalued
On the most followed narrative, Upbound Group screens as undervalued, with a fair value of $28.50 set against the recent close at $20.51.
The introduction of the Acima Classic Credit General-Purpose Mastercard and the Acima Private Label Credit Cards, through the partnership with Concora, is expected to expand offerings and financial access for customers, potentially driving increased revenue and customer base expansion.
Read the complete narrative. Read the complete narrative.
Curious what sits behind that $28.50 figure for Upbound Group? The story leans heavily on expectations of faster earnings, steadier margins, and a future earnings multiple that appears conservative compared to today. The key question is how much operational improvement and revenue build the narrative is assuming. The full breakdown shows exactly how those pieces are stitched together.
Result: Fair Value of $28.50 (UNDERVALUED)
However, Upbound Group's story also hinges on risks, including the CFPB lawsuit around Acima and the possibility that weaker economic conditions could increase lease charge offs.
Next Steps
With conflicting signals around Upbound Group, how quickly do you want to reach your own view? Weigh the potential benefits against the concerns by examining the 3 key rewards and 4 important warning signs.
Looking for more investment ideas beyond Upbound Group?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
