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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Conn's (CONN - Free Report) . CONN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.66 right now. For comparison, its industry sports an average P/E of 29.12. Over the past year, CONN's Forward P/E has been as high as 2,164.50 and as low as -9,841.58, with a median of 11.83.

Finally, investors should note that CONN has a P/CF ratio of 7.62. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.99. Within the past 12 months, CONN's P/CF has been as high as 9.02 and as low as 2.55, with a median of 5.79.

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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