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 $4.1 million.
  • SSI has traded 71,294 shares today.
  • SSI is trading at 2.14 times the normal volume for the stock at this time of day.
  • SSI is trading at a new high 4.08% 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:

TheStreet Recommends

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 8.5%. SSI has a PE ratio of 59. Currently there is 1 analyst that rates Stage Stores a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Stage Stores has been 575,700 shares per day over the past 30 days. Stage Stores has a market cap of $190.3 million and is part of the services sector and retail industry. The stock has a beta of 1.44 and a short float of 24.7% with 10.31 days to cover. Shares are down 21.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stage Stores as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.11 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • SSI, with its decline in revenue, underperformed when compared the industry average of 11.6%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • STAGE STORES INC's earnings per share declined by 47.8% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STAGE STORES INC reported lower earnings of $0.17 versus $1.17 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus $0.17).
  • The gross profit margin for STAGE STORES INC is currently lower than what is desirable, coming in at 31.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.17% trails that of the industry average.
  • Net operating cash flow has decreased to $71.13 million or 33.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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