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

Zacks Equity Research
·2-min read

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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). CONN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.34 right now. For comparison, its industry sports an average P/E of 18.18. Over the past year, CONN's Forward P/E has been as high as 53.82 and as low as -24.82, with a median of 11.76.

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Finally, we should also recognize that CONN has a P/CF ratio of 3.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.28. Over the past year, CONN's P/CF has been as high as 9.02 and as low as 3.19, with a median of 5.36.

These are just a handful of the figures considered in Conn's's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CONN is an impressive value stock right now.


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Zacks Investment Research