Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Conn's as such a stock due to the following factors:
- CONN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $46.1 million.
- CONN has traded 204,067 shares today.
- CONN is up 3% today.
- CONN was down 5.3% yesterday.
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More details on CONN:
Conn's, Inc. is engaged in the specialty retail of durable consumer products in the United States. CONN has a PE ratio of 30.9. Currently there are 8 analysts that rate Conn's a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Conn's has been 1.0 million shares per day over the past 30 days. Conn's has a market cap of $2.2 billion and is part of the services sector and retail industry. The stock has a beta of 1.22 and a short float of 23.6% with 7.24 days to cover. Shares are up 100.8% year to date as of the close of trading on Wednesday.
rates Conn's as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 30.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CONN'S INC has improved earnings per share by 48.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CONN'S INC turned its bottom line around by earning $1.55 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $1.55).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 65.1% when compared to the same quarter one year prior, rising from $11.61 million to $19.16 million.
- The gross profit margin for CONN'S INC is rather high; currently it is at 50.38%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.08% trails the industry average.
- Powered by its strong earnings growth of 48.57% and other important driving factors, this stock has surged by 143.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Conn's Ratings Report.