This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

7 Retail Stocks That Rocked in 2013

3. Conn's

Year-to-date Total Return (as of Dec. 12): 145.99%

Price-to-earnings ratio: 31.74

Market Cap: $2.71 billion

Conn's (CONN) just busted out a solid quarter on Tuesday, showing that there's opportunity in its target customer base of underbanked consumers.

The Beaumont, Texas-based chain, with roughly 70 stores, sells consumer electronics, mattresses and home appliances, but it also has a nearly $1 billion consumer credit portfolio as well.

Conn's reported record profit and revenue for its fiscal 2014 third quarter. The company said last week third-quarter earnings of 66 cents a share were up 88% from the year-earlier period. Revenue rose by half to $310.9 million, with its retail gross margin expanding 460 basis points to 40.1%. Conn's upped its full-year earnings guidance to $2.75 to $2.80 a share.

"We achieved the highest quarterly revenue and net income in Conn's history," Theodore M. Wright, Conn's Chairman and CEO, said in the earnings statement. "This sales trend continued into November with retail sales expanding 49%. November same-store sales rose 32%."

Piper Jaffray analyst Peter Keith reiterated his "overweight" rating and $84 price target on Conn's following its earnings report.

"CONN continues to be one of the better long-term growth stories within our coverage," Keith wrote in a note.

Specifically, the company's retail/credit hybrid business model "allows for significant differentiation and a defensive moat," Keith said.

Conn's also has "a multitude of comp/sales drivers including enhanced marketing, relocations/remodels, new store maturity, continued expansion of furniture and mattresses," as well as opportunity to expand the store base to roughly 300 stores due to its underserved customer base, the note says.

Additionally, "with delinquency trends now running counter to normal seasonal patterns, CONN appears on track to work through the Q2 collections issue by early next year," the note stated.

"All in, we believe CONN is positioned to grow EPS" more than 30% for the next three years, Keith wrote.

6 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs