Conns Inc.’s (CONN - Snapshot Report) shares crafted a new 52-week high of $50.59 on Friday, May 31 before closing at $49.23. The average volume of shares traded over the last 3 months is approximately 604K. The company currently trades at a forward P/E of 19.7x, a 10.0% discount to the industry average of 21.9x.
Shares of this Zacks Rank #1 (Strong Buy) specialty retailer of durable consumer products have increased 61.8% since the beginning of the year, riding on constant share gains in the appliance market, sustained focus on maximizing productivity as well as initiatives to expand its brand portfolio.
Notably, Conns boasts a history of beating the Zacks Consensus Estimate. It ended fiscal 2013 with strong financial results for the fourth quarter. The company posted adjusted earnings of 54 cents per share, up 58.8% from the comparable year-ago quarter while remaining in line with the Zacks Consensus Estimate. In the trailing 5 quarters, Conns has beaten the Zacks Consensus Estimate 4 times with an average surprise of 13.4%.
Net revenue increased 9.8% year over year to $208.4 million, driven by a gain of 9.7% in Retail segment sales and a 14.5% increase in Credit segment sales. Same-store sales increased 7%.
Buoyed by healthy results, management now projects fiscal 2014 earnings of $2.40–$2.50 per share, with expected comparable-store sales growth of 3%–8%. The current Zacks Consensus Estimate for fiscal 2014 stands at $2.49 per share.
We believe that Conns will continue performing well, given its growth initiatives, which include expanding its store base and bringing in technological advancements to better serve its patrons. The company leverages a wide network of stores to effectively penetrate into its target markets, which consequently enable it to generate healthy sales and gain market share.
Other retail stocks to touch new 52-week highs on the same day were Sears Hometown and Outlet Stores Inc., Best Buy Company, Inc. (BBY - Analyst Report) and hhgregg, Inc. (HGG - Analyst Report), which reached $55.62, $28.26 and $16.06, respectively.