Trade Ideas: CONN

The last 52 weeks has seen CONN’s (CONN) stock move from $15 to $55. After bottoming out below $15 this past summer (June 28, 2012), the ticker has more than doubled in value since then. The shares rose past the upper end of a 1-month range on June 10, and set a new high for the year. Technically speaking, CONN’s, Inc will continue to trade in an uptrend as its earnings per share [EPS] growth is projected to go over 60 percent into FY 2014.

CONN will have resistance at $54.70 going forward. Unless key support levels currently at $51.33 and $48.72 are convincingly penetrated, the buy-on-the-dips strategy should be considered as a trade approach for the name. We believe the stock could make another leg higher if it can break above the current 52-wk highs of $55.20 on good volume. If it gets above that level we could see the ticker print the tape at $56.80, which is our short-term target to the upside.

CONN closed at $53.15 on Monday.

Disclosure:  No Position

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