Quick Win by the Algorithm: Stage Stores, Inc. (NYSE: SSI) Returns up to 26.36% in 14 Days

“We are optimistic about 2018 and remain focused on building upon the momentum we established in our department store sales. In addition, our acquisition of Gordmans is a great opportunity for us to leverage the strength of the off-price sector, and we plan to accelerate growth in this business during the coming year. As a result, in 2018, we expect to deliver positive comparable sales, significantly improve EBIT, and generate positive free cash flow.”

-Said Mr. Glazer President, Chief Executive Officer and Director of Stage Stores Inc.

[Image Source: Wikipedia]

Stage Stores, Inc. (NYSE: SSI) operates specialty department stores primarily 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 company also offers merchandise direct-to-consumer through its e-commerce Website and send program. As of September 27, 2017, it operated 792 specialty department stores in 42 states under the BEALLS, GOODY’S, PALAIS ROYAL, PEEBLES, and STAGE names; 58 GORDMANS off-price stores; and stage.com, an e-commerce Website. The company was founded in 1988 and is headquartered in Houston, Texas.

Over the 14 days after I Know First issued its forecast on March 26, 2018, Stage Stores Inc.’s stock price jumped from $2.16 to $2.76 per share, outperforming the market by about 26%. What happened during 2017 financial year that drove the growth? The reason lies in the company’s results of 2017 released with the following highlights:

  • Net sales were $1,592 million compared to $1,443 million for 2016
  • Adjusted EBIT was $(29.8) million compared to $(35.0) million for 2016
  • Adjusted net loss was $23.0 million compared to an adjusted net loss of $24.1 million for 2016
  • Adjusted loss per diluted share was $0.85 compared to adjusted loss per diluted share of $0.89 for 2016

From the above data one can see that despite that the company’s decrease in adjudged EBIT comparing to 2016, the company’s net sales for 2017 financial year increased, adjusted net loss decreased comparing to 2016 and adjusted loss per diluted share also decreased. This shows that there was an overall performance improvement by the company from operational and investment positions. The company may have succeeded to adjust its spending and invest the available funds without affecting the overall costs.

The stock price growth from March 26, 2018 to April 9, 2018  and return of 26.36% over the 14 days forecast with regards to Stage Stores Inc.’ stock is presented below:

[Image Source: Yahoo Finance]

On March 26, 2018, I Know First issued a bullish 14 day forecast for Stage Stores, Inc. Stock  (NYSE: SSI). The forecast illustrated a signal of 25.23 and a predictability of 0.12. In accordance with the forecast, SSI’s stock returned 26.36% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish SSI forecast on March 26, 2018.

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