Why Is PROG Holdings Stock Falling Tuesday?

PROG Holdings (NYSE:PRG) shares are down during Tuesday’s premarket session as the company updates its 2026 outlook ahead of its Investor Day.

Revises 2026 Revenue Outlook

PROG revised its full-year 2026 outlook, particularly for its Purchasing Power business. This is expected to see revenue adjustments due to the application of the revenue recognition standard ASC 606.

Specifically, the company anticipates a reduction in total Purchasing Power revenue of around $70 million at both the high and low ends of its guidance range, provided in its 2026 guidance on February 18, 2026. 

Notably, PROG lowered the 2026 Purchasing Power sales outlook to $610 million-$660 million from $680 million-$730 million earlier.

In connection with its acquisition of Purchasing Power in January 2026, the company continues to expect revenue growth at a low double-digit rate.

The financial expectations for 2026 remain largely unchanged amid ongoing economic uncertainties.

Further, it assumes the continuation of a difficult operating environment with soft demand for consumer durable goods, and does not assume a material economic slowdown resulting from, among other things, current Iran-related hostilities.

Consequently, the company lowered 2026 sales guidance to $2.950 billion-$3.070 billion from $3.020 billion-$3.140 billion earlier.

Technical Analysis

The stock is currently trading 8.5% below its 20-day simple moving average (SMA) and 2.9% above its 100-day SMA, demonstrating some longer-term strength despite the recent decline. Shares have increased 21.41% over the past 12 months and are currently positioned closer to their 52-week lows than highs.

The RSI is at 42.41, which is considered neutral territory, while the MACD shows a value of 0.0156, below its signal line at 0.5950, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $34.00
• Key Support: $32.00

Upcoming Earnings and Analyst Expectations

PROG Holdings is expected to release its first-quarter 2026 financial results on April 22, 2026.

• EPS Estimate: 78 cents (Down from 90 cents)
• Revenue Estimate: $735.73 million (Up from $684.09 million)
• Valuation: P/E of 10.8x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $41.27. Recent analyst moves include:

• TD Cowen: Buy (Lowers Target to $38.00) (Jan. 8)
• B. Riley Securities: Initiated with Buy (Target $50.00) (Dec. 16, 2025)
• BTIG: Upgraded to Neutral (Nov. 21, 2025)

Benzinga Edge Scorecard

Below is the Benzinga Edge scorecard for PROG Holdings, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 90.93 — Stock is considered undervalued relative to peers.
• Quality Rank: 52.3 — Balance sheet remains healthy.
• Momentum Rank: 47.31 — Stock is underperforming the broader market.

The Verdict: PROG Holdings’ Benzinga Edge signal reveals a strong value proposition with a high Value Rank of 90.93, indicating the stock is undervalued compared to its peers. However, the Momentum Rank of 47.31 suggests that the stock is currently underperforming relative to the broader market, which may warrant caution for potential investors.

PRG Shares Dip 7.06% in Premarket Trading

PRG Price Action: PROG Holdings shares were down 7.06% at $30.41 during premarket trading on Tuesday, according to Benzinga Pro data.

Image via Shutterstock

This article Why Is PROG Holdings Stock Falling Tuesday? originally appeared on Benzinga.com

.