5-Star Stocks Poised to Pop: Conn's

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics and appliance retailer Conn's (Nasdaq: CONN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Conn's business and see what CAPS investors are saying about the stock right now.

Conn's facts

Headquarters (Founded)	Beaumont, Texas (1890)
Market Cap	$159.45 million
Industry	Electronics stores
Trailing-12-Month Revenue	$905.2 million
Management	CEO Timothy Frank (since June 2009) CFO Michael Poppe (since February 2008)
Return on Equity (Average, Past 3 Years)	10.9%
Cash/Debt	$4.85 million / $130.53 million
Competitors	Wal-Mart (NYSE: WMT) Best Buy (NYSE: BBY) Costco (Nasdaq: COST)
CAPS Members Bullish on CONN Also Bullish on	General Electric (NYSE: GE) Bank of America (NYSE: BAC)
CAPS Members Bearish on CONN Also Bearish on	JPMorgan Chase (NYSE: JPM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 315 members who have rated Conn's believe the stock will outperform the S&P 500 going forward. These bulls include GrowthnValue and All-Star fmahnke, who is ranked in the top 3% of our community.

Late last month, GrowthnValue tapped the company's recent miss as a great chance to go on a buying spree:

Overreaction to the bad earnings news. I think there is some space out there for electronic retailers with the bankruptcy of Circuit City. The bricks & mortar places will remain under pressure from online retailers, but I think there is a significant segment of customers who like to go to an actual store and see and buy the product there.

In a pitch from four days later, fmahnke expands on Conn's as a particularly attractive asset play:

If I apply a very conservative haircut of 75% to all the receivables and inventories, and 50% to the PP&E, I come up with $9 a share, which I view as a conservative liquidation value. This means that the market is assigning a negative value to the underlying business, a business which has been consistently profitable.

I don't know much about these stores, but I do know that the Texas economy is better shape than most. More importantly, I know that an officer of the Company bought a big block of shares at $8.34 which makes me more comfortable.

What do you think about Conn's, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!