On Apr 6, 2013, Zacks Investment Research upgraded
Conn's, Inc. ( CONN ) to a Zacks Rank
#1 (Strong Buy). Shares of this specialty retailer of home
appliances, furniture, mattresses and consumer electronics have
amassed an impressive year-to-date return of 43.7%.
Why the Upgrade?
Conn's has been witnessing rising earnings estimates owing to
impressive fourth-quarter fiscal 2013 results, on the back of
strong comparable-store sales momentum, the pricing power, margin
improvement and unit remodeling. The company declared strong
results on Apr 3, 2013, wherein earnings of 54 cents a share came
in line with the Zacks Consensus Estimate but surged 58.8% from 34
cents earned in the year-ago quarter.
This durable consumer goods retailer has outperformed the Zacks
Consensus Estimate in 4 out of last 5 quarters and met in one,
resulting in an average beat of 13.4%. The long-term expected
earnings growth rate for the stock is 15%.
Conn's total revenue grew 10.4% to $250.3 million in the quarter
from $226.7 million in the year-ago period, and came ahead of the
Zacks Consensus Estimate of $249 million. Comparable-store sales
for the quarter climbed
Revenue from the retail segment increased 9.7% to $208.7
million, whereas retail gross margin expanded 720 basis points to
36.9%. On the other hand, credit card segment revenue soared 14.5%
to $41.6 million.
Buoyed by healthy results, management now projects fiscal 2014
earnings between $2.40 and $2.50 with expected comparable-store
sales growth of 3% to 8%.
The Zacks Consensus Estimates for the first and second quarters
of fiscal 2014 rose 11.9% and 8.2% to 47 cents and 53 cents,
respectively, in the last 7 days. For fiscal 2014, the Zacks
Consensus Estimate rose 17.8% to $2.45 per share over the same time
Other Stocks to Consider
The stocks worth considering in the non-food retail, wholesale
sector include Lumber Liquidators Holdings Inc. (
LL ), Macy's,
Inc. ( M )
and Cabela's Inc. ( CAB ), all of which
carry a Zacks Rank #1 (Strong Buy).The stocks are expected to
continue with their upbeat performances.CABELAS INC (CAB): Free Stock Analysis ReportCONNS INC (CONN): Free Stock Analysis ReportLUMBER LIQUIDAT (LL): Free Stock Analysis
ReportMACYS INC (M): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment