Strong On High Volume: Stage Stores (SSI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $13.2 million.
  • SSI has traded 209,137 shares today.
  • SSI is trading at 15.18 times the normal volume for the stock at this time of day.
  • SSI is trading at a new high 4.00% 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SSI with the Ticky from Trade-Ideas. See the FREE profile for SSI NOW at Trade-Ideas

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 3%. SSI has a PE ratio of 16. Currently there are 3 analysts that rate Stage Stores a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Stage Stores has been 386,300 shares per day over the past 30 days. Stage Stores has a market cap of $598.2 million and is part of the services sector and retail industry. The stock has a beta of 0.55 and a short float of 12.2% with 4.51 days to cover. Shares are down 20.3% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Stage Stores as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • STAGE STORES INC has improved earnings per share by 43.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, STAGE STORES INC increased its bottom line by earning $1.17 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.29 versus $1.17).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 75.8% when compared to the same quarter one year prior, rising from $24.86 million to $43.72 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 6.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 35.80% is the gross profit margin for STAGE STORES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.32% is above that of the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.