) shares crafted a new 52-week high of $50.59 on Friday, May 31
before closing at $49.23. The average volume of shares traded
over the last 3 months is approximately 604K. The company
currently trades at a forward P/E of 19.7x, a 10.0% discount to
the industry average of 21.9x.
Shares of this Zacks Rank #1 (Strong Buy) specialty retailer
of durable consumer products have increased 61.8% since the
beginning of the year, riding on constant share gains in the
appliance market, sustained focus on maximizing productivity as
well as initiatives to expand its brand portfolio.
Notably, Conns boasts a history of beating the Zacks Consensus
Estimate. It ended fiscal 2013 with strong financial results for
the fourth quarter. The company posted adjusted earnings of 54
cents per share, up 58.8% from the comparable year-ago quarter
while remaining in line with the Zacks Consensus Estimate. In the
trailing 5 quarters, Conns has beaten the Zacks Consensus
Estimate 4 times with an average surprise of 13.4%.
Net revenue increased 9.8% year over year to $208.4 million,
driven by a gain of 9.7% in Retail segment sales and a 14.5%
increase in Credit segment sales. Same-store sales increased
Buoyed by healthy results, management now projects fiscal 2014
earnings of $2.40-$2.50 per share, with expected comparable-store
sales growth of 3%-8%. The current Zacks Consensus Estimate for
fiscal 2014 stands at $2.49 per share.
We believe that Conns will continue performing well, given its
growth initiatives, which include expanding its store base and
bringing in technological advancements to better serve its
patrons. The company leverages a wide network of stores to
effectively penetrate into its target markets, which consequently
enable it to generate healthy sales and gain market share.
Other retail stocks to touch new 52-week highs on the same day
Sears Hometown and Outlet Stores Inc
Best Buy Company, Inc.
, which reached $55.62, $28.26 and $16.06, respectively.
BEST BUY (BBY): Free Stock Analysis Report
CONNS INC (CONN): Free Stock Analysis Report
HHGREGG INC (HGG): Free Stock Analysis Report
SEARS HOMETOWN (SHOS): Get Free Report
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