On May 29, 2013, Zacks Investment Research upgraded
Bon-Ton Stores, Inc
) to a Zacks Rank #1 (Strong Buy). Shares of this department
store retailer of apparel, accessories, cosmetics, home
furnishings and footwear have amassed an impressive year-to-date
return of roughly 75%.
Why the Upgrade?
Bon-Ton has been witnessing rising earnings estimates on the
back of better-than-expected first-quarter fiscal 2013 results in
spite of inclement weather. The impressive results were
attributable to double-digit sales growth across its eCommerce
business and higher penetration of proprietary credit card sales.
Moreover, favorable product mix led to an improvement in the
The company declared first-quarter results on May 23, 2013,
posting a loss of $1.40 per share that not only fared better than
the Zacks Consensus Estimate of loss of $1.84 but also portrayed
a drastic improvement from a loss of $2.18 in the year-ago
Bon-Ton's total revenue inched up 1.2% to $661.9 million in
the quarter from $654.3 million in the year-ago period.
Comparable-store sales for the quarter climbed 1.2%. Gross margin
during the quarter expanded 57 basis points to 34.8% due to lower
Despite healthy results, management reaffirmed its fiscal 2013
earnings guidance of 40 cents to $1.00 per share. Following the
results, the Zacks Consensus Estimate for fiscal 2013 surged
significantly by 41.3% to 89 cents per share over the last 30
Other Stocks to Consider
Apart from Bon-Ton, there are other stocks with a favorable
Zacks Rank, which are capable of continuing with their upbeat
performances. These include
Flowers Foods, Inc.
Michael Kors Holdings Limited
), all carrying a Zacks Rank #1 (Strong Buy).
BON-TON STORES (BONT): Get Free Report
DILLARDS INC-A (DDS): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
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