Conn's Inc.

Conn’s Inc. (CONN - Snapshot Report) recently reported a robust quarter, topping analysts’ estimates by 15%. The company offers an attractive valuation and Wall Street is bullish on earnings going forward.

Company Description

Conn's is a specialty retailer that operates 76 locations in Texas, Louisiana and Oklahoma. The bulk of the company's stores are in Texas, with only 6 operating in Louisiana and 3 in Oklahoma.

The company sells home appliances, including refrigerators, dishwashers, washers, and dryers, consumer electronics, including LCD and plasma televisions, digital cameras and computers, lawn and garden products, furniture and mattresses, and other home products.

A hallmark of the company is its flexible in-house credit options which, over the prior 3 years, has allowed Conn's to finance, on average, about 61% of its retail sales.

Solid Fundamentals

The company recently reported fourth-quarter earnings of 60 cents per share, topping the consensus estimate by 15%. Total revenues jumped 19.5% year-over-year.

Analysts are bullish, calling for full-year earnings of $1.59 per share, above last month’s $1.56 and $1.40 of 2 months ago. The most accurate estimate is higher at $1.80.

Value Fundamentals

Conn's is a Zacks #1 Rank (strong buy) stock. It has surprised on estimates for the past 4 straight quarters.

The company is trading with a forward P/E of 8.8. It has a PEG ratio of only 0.74. The company's has a solid return on equity (ROE) of 12.5%.