On Jun 8, 2013, Zacks Investment Research upgraded
) 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
Why the Upgrade?
Conn's has been witnessing rising earnings estimates owing to
impressive first-quarter fiscal 2014 results, on the back of
strong comparable-store sales momentum, the pricing power, margin
improvement and unit remodeling.
The company declared strong results on Jun 6, 2013, wherein
earnings of 61 cents a share came ahead of the Zacks Consensus
Estimate of 56 cents, and surged 74.3% from 35 cents earned in
the year-ago quarter.
This durable consumer goods retailer outperformed the Zacks
Consensus Estimate in 5 of the 6 last quarters and met in one,
resulting in an average beat of 12.6%. The long-term expected
earnings growth rate for the stock is 17.5%.
Conn's total revenue grew 25% to $251.1 million in the quarter
from $200.9 million in the year-ago period, and came ahead of the
Zacks Consensus Estimate of $241 million. Comparable-store sales
for the quarter climbed
Revenue from the retail segment increased 25.5% to $209.8
million, whereas retail gross margin expanded 660 basis points to
40.3%. On the other hand, credit card segment revenue soared
22.6% to $41.3 million.
Buoyed by healthy results, management now projects fiscal 2014
earnings between $2.50 and $2.65 with expected comparable-store
sales growth of 8% to 13%.
The Zacks Consensus Estimate for fiscal 2014 rose 5.6% to
$2.63, whereas for fiscal 2015 it jumped 9.6% to $3.42 per share
in the last 7 days.
Other Stocks to Consider
The stocks worth considering in the non-food retail, wholesale
Flowers Foods, Inc.
Bon-Ton Stores Inc.
), both of which hold a Zacks Rank #1 (Strong Buy), and
J&J Snack Foods Corp.
), which carries a Zacks Rank #2 (Buy). These stocks are expected
to continue with their upbeat performances.
BON-TON STORES (BONT): Get Free Report
CONNS INC (CONN): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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