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Conn's (CONN) Gains But Lags Market: What You Should Know

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In the latest trading session, Conn's (CONN - Free Report) closed at $23.03, marking a +0.48% move from the previous day. This move lagged the S&P 500's daily gain of 0.82%.

Coming into today, shares of the retailer had lost 11.06% in the past month. In that same time, the Retail-Wholesale sector lost 2.61%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from CONN as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $399.76 million, up 8.95% from the year-ago period.

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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant. CONN is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, CONN is holding a Forward P/E ratio of 7.85. This valuation marks a discount compared to its industry's average Forward P/E of 13.19.

Also, we should mention that CONN 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. The Retail - Consumer Electronics was holding an average PEG ratio of 0.97 at yesterday's closing price.

The Retail - Consumer Electronics industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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