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Is PRG a good stock to buy? We came across a bullish thesis on PROG Holdings, Inc. on Valueinvestorsclub.com by bigvic. In this article, we will summarize the bulls’ thesis on PRG. PROG Holdings, Inc.'s share was trading at $35.84 as of April 29th. PRG’s trailing and forward P/E were 9.50 and 8.73 respectively according to Yahoo Finance.

PROG Holdings, Inc. (PRG) is a holding company serving credit-constrained consumers through lease-to-own, BNPL, and employee purchasing platforms and represents a misunderstood transformation story with significant upside as its business mix evolves and valuation remains depressed.

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Since separating from Aaron’s in 2020, PRG has shifted from near-total dependence on Progressive Leasing (ProgL) to a diversified platform including ProgL, Four Technologies (FourT), Purchasing Power (PP), and MoneyApp, with ProgL now 73% of revenue and 79% of EBITDA, reflecting a changing earnings base. ProgL, the pioneer of virtual lease-to-own, remains a high-quality franchise with historical growth through national retail partnerships, a 2022 cyclical downturn, and stabilization near $260mm EBITDA, while incremental wins with large retailers such as Best Buy and Lowe’s provide meaningful upside optionality.

FourT is the key driver, acquired for $23mm and scaling with 170% revenue growth in 2025 and 80% guided growth for 2026, supported by Amazon, Target, and Walmart partnerships, over 80% recurring subscription revenue, and margin expansion potential from 15% toward peer BNPL levels above 35%. PP adds a sticky employer purchasing ecosystem with 98% retention, payroll-deducted payments, and steady double-digit growth, while MoneyApp remains a small but improving business.

On valuation, PRG generates $200mm in FCF or ~$5 per share, implying under 8x FCF and a discount to small-cap multiples, with a 16x multiple implying over $80 per share. A potential FourT spin-off at BNPL peer multiples could be worth ~$17 per share, while remaining business trades at low multiple with upside from buybacks, deleveraging toward 2x, tax benefits, and making investor day key catalyst.

Previously, we covered a bullish thesis on PayPal Holdings, Inc. (PYPL) by Sergey in May 2025, highlighting transformation, AI-driven payments, Venmo and BNPL growth, and margin expansion. PYPL's stock price has depreciated by approximately 23.19% since our coverage. bigvic shares a similar view but emphasizes PRG’s undervalued transformation across lease-to-own, BNPL, and spin-off catalysts, contrasting PayPal’s platform execution and ecosystem scaling.

PROG Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held PRG at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of PRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PRG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.