Aaron’s (AAN) Is Expected To Do Well: Barron’s

Atlanta-based Aaron’s (NYSE: AAN) rents furniture, computers and electronics by the month, with an option to own. Its business has done well during the recession. The company has a market capitalization of $1.49 billion.

The company also has revised its earnings estimates for the year. Aaron’s is expecting to register an EPS of $2.15 to $2.35 in 2010. The number of new stores is likely to grow by 5% to 9%. The stock is currently trading at the multiple of 11, thereby making it a cheap buy.

According to Barron’s, Gil Danielson, CFO of Aaron’s, has stated that the company is likely to do better once the employment figure improves.