Does Conn's Pop Today Mean It's Too Late to Buy?
Shares of home goods and electronics retailer Conn's jumped big time this morning after announcing a great quarter. Conn's revenue shot up 34%, while comparable store sales were up 16%. All of this led to Conn's hitting EPS of $0.80, beating analyst EPS expectations of $0.73.
According to Motley Fool analyst Michael Finarelli, a lot of this strength came from improvements in the housing market. As more people have more money to spend on home goods, more shop at Conn's. Adding to this strength is the company's credit program, which allows low-to-mid income consumers to buy products on credit -- something competitors like Best Buy don't offer. Investors were once worried about the company having too much bad credit on its books, but Conn's looks strong this quarter.
So, is it too late for investors to jump in to Conn's? Michael doesn't think so; he believes investors shouldn't be worried about the short-term pops and drops. Conn's looks like a strong business for the long run, so investors should feel free to buy.
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The article Does Conn's Pop Today Mean It's Too Late to Buy? originally appeared on Fool.com.Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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