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Is Conn's (CONN) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Conn's (CONN - Free Report) is a stock many investors are watching right now. CONN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 19.75. CONN's Forward P/E has been as high as 20.04 and as low as -24.82, with a median of 11.54, all within the past year.

Finally, investors should note that CONN has a P/CF ratio of 3.48. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.22. CONN's P/CF has been as high as 9.02 and as low as 3.19, with a median of 5.09, all within the past year.

These are only a few of the key metrics included in Conn's's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CONN looks like an impressive value stock at the moment.


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