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Conn's (CONN) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Conn's (CONN - Free Report) closed at $23, marking a -0.56% move from the previous day. This move lagged the S&P 500's daily gain of 1.02%.

Coming into today, shares of the retailer had lost 12.62% in the past month. In that same time, the Retail-Wholesale sector gained 0.19%, while the S&P 500 gained 3.01%.

Investors will be hoping for strength from CONN as it approaches its next earnings release. On that day, CONN is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 6.67%. Meanwhile, our latest consensus estimate is calling for revenue of $399.76 million, up 8.95% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $1.52 billion. These totals would mark changes of +4766.67% and +9.69%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CONN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 11.45% higher. CONN is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, CONN is holding a Forward P/E ratio of 7.92. This valuation marks a discount compared to its industry's average Forward P/E of 10.41.

We can also see that CONN currently has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Consumer Electronics stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CONN in the coming trading sessions, be sure to utilize Zacks.com.


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