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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Conn's (CONN - Free Report) . CONN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 15.57, while its industry has an average P/E of 18.65. Over the past 52 weeks, CONN's Forward P/E has been as high as 2,164.50 and as low as -9,841.58, with a median of 4.10.

Finally, we should also recognize that CONN has a P/CF ratio of 5.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.82. Over the past 52 weeks, CONN's P/CF has been as high as 6.79 and as low as 0.75, with a median of 4.12.

Value investors will likely look at more than just these metrics, but the above data helps show that Conn's is likely undervalued currently. And when considering the strength of its earnings outlook, CONN sticks out at as one of the market's strongest value stocks.


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