Stage Stores (SSI) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Stage Stores (SSI) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Stage Stores

(

SSI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Stage Stores as such a stock due to the following factors:

  • SSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.2 million.
  • SSI has traded 95,893 shares today.
  • SSI is trading at 3.61 times the normal volume for the stock at this time of day.
  • SSI is trading at a new high 5.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SSI:

Stage Stores, Inc. operates as a specialty department store retailer in small and mid-sized towns and communities in the United States. Its merchandise portfolio comprises moderately priced brand name and private label apparel, accessories, cosmetics, footwear, and home goods. The stock currently has a dividend yield of 6.2%. SSI has a PE ratio of 1. Currently there are 2 analysts that rate Stage Stores a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Stage Stores has been 899,800 shares per day over the past 30 days. Stage Stores has a market cap of $311.5 million and is part of the services sector and retail industry. The stock has a beta of 1.77 and a short float of 21.6% with 7.93 days to cover. Shares are down 51.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stage Stores as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SSI's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.10 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for STAGE STORES INC is currently lower than what is desirable, coming in at 32.26%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.42% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 85.6% when compared to the same quarter one year ago, falling from $11.19 million to $1.62 million.

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