Highlighted stocks include Dress Barn, Inc. (DBRN), Aaron’s Inc. (AAN), Kinetic Concepts, Inc. (KCI), and Bank of Montreal (BMO).
Dress Barn, Inc. (DBRN), the specialty retailer which operates dressbarn and maurice stores, announced on June 25 that it was merging with Tween Brands, Inc. (TWB) in a stock-for-stock transaction.
Tween Brand specializes in tween retail which includes fashion merchandise and accessories for girls between the ages of 7 and 14. Its brands include Justice and Limited Too.
After the closing of the transaction, Tween Brands stockholders will own about 16% of Dress Barn, Inc. Tween Brands outstanding bank debt will also be repaid.
Dress Barn expects the transaction to be earnings neutral in the first full year after the merger and accretive after that.
Dress Barn is a Zacks #1 Rank (strong buy) stock. It is trading with a forward P/E of 13.96.
Aaron’s Inc. (AAN), the retailer which provides rent-to-own plans for a variety of merchandise, posted a record first quarter as same store sales jumped 12.3%. Analysts expect year over year earnings growth of 26.42% as the company saw a 20% rise in customers in the first quarter. Read the full article.
Kinetic Concepts, Inc. (KCI), the manufacturer of negative pressure wound therapy, has surprised on estimates 3 out of the last 4 quarters by an average of 8.73%. KCI trades with a PEG ratio of just 0.75. Read the full article.
Bank of Montreal (BMO), the diversified Canadian personal and commercial bank, is doing something some of its peers are not: actually making money. BMO is trading with a forward P/E of 11.34. Read the full article.
