Conn's Inc. (CONN): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Conn's ( CONN) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Conn's fell $0.63 (-1.2%) to $53.33 on average volume. Throughout the day, 714,824 shares of Conn's exchanged hands as compared to its average daily volume of 620,600 shares. The stock ranged in price between $52.84-$54.73 after having opened the day at $54.53 as compared to the previous trading day's close of $53.96. Other companies within the Retail industry that declined today were: Liquidity Service ( LQDT), down 10.4%, Sears Hometown & Outlet Stores ( SHOS), down 6.7%, dELiA*s ( DLIA), down 3.4% and China Jo-Jo Drugstores ( CJJD), down 3.1%.
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Conn's, Inc. engages in the specialty retail of durable consumer products in the United States. Conn's has a market cap of $1.7 billion and is part of the services sector. The company has a P/E ratio of 31.1, above the S&P 500 P/E ratio of 17.7. Shares are up 58.1% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Conn's a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Conn's as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, GameStop ( GME), down 6.2%, Natural Grocers by Vitamin Cottage ( NGVC), down 4.5%, Rite Aid Corporation ( RAD), down 4.5% and Kroger ( KR), down 4.3% , were all gainers within the retail industry with ( AMZN) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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