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

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Conn's (CONN - Free Report) . CONN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.42, which compares to its industry's average of 13.58. Over the past 52 weeks, CONN's Forward P/E has been as high as 35.56 and as low as 9.48, with a median of 14.11.

CONN is also sporting a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CONN's industry has an average PEG of 1.01 right now. Within the past year, CONN's PEG has been as high as 1.73 and as low as 0.41, with a median of 0.61.

Investors should also recognize that CONN has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CONN's current P/B looks attractive when compared to its industry's average P/B of 4.16. Within the past 52 weeks, CONN's P/B has been as high as 2.36 and as low as 1.12, with a median of 1.88.

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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