Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

On Nov 26, Zacks Investment Research upgraded Bon-Ton Stores, Inc. (BONT) 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 50%.

Why the Upgrade?

Bon-Ton has been witnessing rising earnings estimates on the back of better-than-expected third-quarter fiscal 2013 bottom-line results. The impressive results were attributable to higher operating income and lower expenses. Moreover, favorable product mix and robust e-Commerce growth were the additional tailwinds.

The company reported third-quarter loss of 5 cents per share on Nov 21 that not only fared better than the Zacks Consensus Estimate of a loss of 50 cents but were also significantly better than a loss of 55 cents in the year-ago quarter.

Adjusted EBITDA came in at $38.4 million, up 12.6% year over year. Operating income increased 46.6% year over year to $15.9 million whereas gross margin remained flat year over year at 36.6%. Further, selling, general and administrative (SG&A) expenses declined 4.3% year over year to $215.2 million.

Despite healthy results, management reaffirmed its fiscal 2013 earnings guidance of 15 cents–75 cents per share. Following the results, the Zacks Consensus Estimate for fiscal 2013 improved substantially to 75 cents from 35 cents over the last 30 days and for fiscal 2014, the Zacks Consensus Estimate went up 23.8% to $1.08 over the same time frame.  

Other Stocks to Consider

Some better-ranked stocks in the retail sector, which look attractive at the current level include Hanesbrands Inc. (HBI - Analyst Report) and Kirkland's Inc. (KIRK - Analyst Report) both carrying a Zacks Rank #1 (Strong Buy), whereas Five Below, Inc. (FIVE - Snapshot Report),  sports a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%