Why Bon-Ton Stores, Global Eagle Entertainment, and Organovo Are Today's 3 Best Stocks

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

It hasn't happened often lately, but positive economic data produced a strong move to the upside in the broad-based S&P 500 (SNPINDEX: ^GSPC  ) . Today's primary bullish driver was the weekly U.S. initial jobless claims report, which demonstrated a drop of 21,000 to a seasonally adjusted 323,000. Any figure in the lower 300,000s would suggest that the jobs outlook is slowly improving and is likely to be conducive to an ongoing drop in the nation's unemployment rate.

A tame Producer Price Index, which showed a core jump of 0.2% in October and a headline drop of 0.2%, also bodes well for consumers. The PPI is an index that investors often use to gauge inflation. With the U.S. economy growing at a modest, but not exceptional, pace, relatively low levels of inflation are good news for consumers and overall GDP growth, because consumer spending is such a large component of U.S. GDP.

By day's end, the S&P 500 finished decisively higher by 14.48 points (0.81%), to close at 1,795.85, just shy of another all-time closing high and breaking a three-day losing streak.

Leading all companies to the upside today was department store operator Bon-Ton Stores (NASDAQ: BONT  ) , which shot higher by 23% after reporting a narrower-than-expected third-quarter loss. For the quarter, Bon-Ton delivered a 3% decline in sales to $651.2 million, with same-store sales falling by a similar 2.8%. However, due to significant cost cutting, Bon-Ton was able to narrow its loss to just $0.05 per share from $0.55 in the year earlier. By comparison, Bon-Ton's sales failed to match Wall Street's expectations of $671 million, but it handily surpassed the projected $0.29 per-share loss. The company also stuck by its original guidance of $0.15-$0.75 per share in full-year earnings. While certainly a good day for existing shareholders, I remain concerned that a lack of organic growth can only take this rally so far, and would urge investors to tread carefully around Bon-Ton.

Satellite-based WiFi provider Global Eagle Entertainment (NASDAQ: ENT  ) advanced 15% after issuing a press release that it can now provide gate-to-gate WiFi service for Southwest Airlines' (NYSE: LUV  ) passengers. Because Global Eagle's WiFi technology is satellite based and not reliant on cellular towers, it's able to offer passengers the ability to get online throughout the entire flying process. Today's move also follows a multi-day surge that began with its third-quarter earnings release last week. That report highlighted a 286% increase in year-over-year revenue to $74.5 million, as its net loss shrank modestly to $6.8 million from $8 million. Although Global Eagle Entertainment has yet to hit profitability, it's certainly a name I'd suggest adding to your watchlist.

Finally, tissue engineering company Organovo Holdings (NYSEMKT: ONVO  ) gained 11.5% despite a lack of company-specific news... today, at least. Yesterday, Organovo issued a press release regarding its upcoming retail investor conference in which it reaffirmed its belief that it will have a liver tissue assay product on the market in 2014. In addition, this retail conference, which is scheduled for Thursday, Dec. 5, will outline management's revenue forecast for each pipeline product as well as its potential marketing partners and opportunities. With the company still in its clinical stages of development, you can somewhat understand why I remain skeptical of Organovo at its current valuation; but it does bring to the table an idea that, if successful, could revolutionize numerous aspects of patient treatment. As such, I see no reason why it shouldn't be monitored on your watchlist, as well.

Thinking outside the box can make you rich
Are you tired of not seeing your holdings among the days top performers? Perhaps it's because you aren't thinking far enough outside the box! Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2738550, ~/Articles/ArticleHandler.aspx, 3/29/2015 2:21:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!