Trade-Ideas LLC identified Conn's ( CONN) 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 $18.5 million.
  • CONN has traded 62,453 shares today.
  • CONN is up 8.9% today.
  • CONN was down 5.8% yesterday.

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More details on CONN:

Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. It operates through Retail and Credit segments. CONN has a PE ratio of 17. Currently there are 2 analysts that rate Conn's a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Conn's has been 857,500 shares per day over the past 30 days. Conn's has a market cap of $734.7 million and is part of the services sector and retail industry. The stock has a beta of 2.89 and a short float of 48.7% with 12.44 days to cover. Shares are up 7.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Conn's as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income.

Highlights from the ratings report include:
  • CONN's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for CONN'S INC is rather high; currently it is at 53.96%. 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 4.18% trails the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Specialty Retail industry and the overall market, CONN'S INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Looking at the price performance of CONN's shares over the past 12 months, there is not much good news to report: the stock is down 36.47%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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