What do analysts say about Conns?
 | By Rifka Kats | Macroaxis Story |
Despite Conn's Inc. recent stock price decline, the company's robust revenue of 1.2B and a substantial revenue per share of 49.99 suggest that the current market valuation may not reflect its true potential. However, investors should also consider the company's negative return on assets of 0.06 and a profit margin loss of 0.14, indicating potential financial challenges.
Major Takeaways
Conn's Inc, with a market volatility Beta of 1.69, indicates a somewhat significant risk compared to the market. The company is projected to outperform the market when it rises, but may underperform if the market returns are negative. Conn's Inc is expected to return -0.6%. It's crucial to verify Conn's Inc's information ratio and potential upside, as well as the correlation between the potential upside and the rate of daily change. This will help determine if Conn's Inc's past performance will be replicated in the near future.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Every cloud has a silver lining, and Conn's Inc., a prominent player in the Specialty Retail industry, might just be the perfect example of this adage. Despite a recent decline in stock price, the company's true value may be significantly underestimated. Conn's Inc. has been grappling with a loss of $59.3 million, which has understandably raised concerns among investors. This loss, coupled with a negative Return On Equity of 0.35 and a negative Return On Assets of 0.06, has contributed to the stock's underperformance. However, it's crucial to look beyond these figures to understand the company's potential. The company's Total Revenue stands at a robust $1.3 billion, indicating a strong market presence. Moreover, the stock's Potential Upside of 5.88 suggests that the current price decline could be a misleading indicator of its true value. The company's stock has a 52 Week High of $5.39 and an Analyst Target Price Estimated Value of $7, indicating potential for significant growth. Despite the current challenges, Conn's Inc. has a strong foundation in the Specialty Retail industry, which could help it weather the storm and emerge stronger. In conclusion, while the current financial indicators may seem discouraging, they may not fully reflect the company's potential. Investors willing to take on a bit of risk could find Conn's Inc. to be a hidden gem in the Specialty Retail sector. Analysts have revised their consensus on Conns Inc from a 'buy or sell' to a 'strong buy'. The company, which operates in the specialty retail sector, is set to announce its earnings tomorrow, with the next financial report due on June 6, 2024. Given the recent economic conditions, it's worth reviewing Conns Inc's outlook, as many retail investors are showing interest in this space. Despite a decrease in confidence compared to a month ago, the current recommendation from one analyst is a 'strong buy', suggesting a potentially better year ahead for Conns shareholders.What is the right price you would pay to acquire a share of Conns? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.
Watch out for price decline
Please consider monitoring Conns on a daily basis if you are holding a position in it. Conns is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Conns stock to be traded above the $1 level to remain listed. If Conns stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
What is happening with Conns Inc this year
Annual and quarterly reports issued by Conns Inc are formal financial statements that are published yearly and quarterly and sent to Conns stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Conns often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Breaking it down a bit more
Average experts consensus on Conns Inc has changed. Currently, most analysts have less confidence in the entity as compared to a month ago. The current buy or sell recommendation of 2 analysts is Strong Buy.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Conns Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.