Ducking Under the Trend Lines, Shares Look for a Catalyst: Stage Stores, Inc. (NYSE:SSI)

Stage Stores, Inc. (NYSE:SSI) stock has been on a recent steady downtrend, causing some concern for shareholders.

Investors may be trying to decide if stocks will make new highs before the year is out, and whether or not the bull market will celebrate its 9th anniversary next year. The tricky part is prognosticating the short term picture. Investors may not be comfortable enough to go all in, but they may not want to get bearish given the solid economic backdrop. Will there be a big breakout given the strength of earnings and economic growth? Will investors just become numb to the headlines and decide to focus on the positive economic picture? It is always wise to remember that the market can have a correction at any time for any reason. If the political landscape gets even more dysfunctional, then it may be enough of a driver to spur a correction.

It is important to consider the moving averages of a downtrending security.  We see here that Stage Stores, Inc. (NYSE:SSI) is -37.28% away from the 20-Day Simple Moving Average.  Their 50-Day Simple Moving Average is a difference of -50.10% from current levels.  Further back, their 200-Day Simple Moving Average is -66.08% difference from today’s price.  Currently, the stock is -61.02% from its 50-Day High and -2.03% from the 50-day low. 

RSI and Recommendations

Stage Stores, Inc.’s RSI is 19.50.  Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 18.48% and month of 9.79%.  

Wall Street analysts have a consensus 4.00 recommendation on the stock.  

Stage Stores, Inc. (NYSE:SSI)’s performance this year to date is -2.03%.  The stock has performed -26.07% over the last seven days, -51.34% over the last thirty, and -61.84% over the last three months.  Over the last six months, Stage Stores, Inc.’s stock has been -68.34% and -62.82% for the year.

Investors might have been ready to throw in the towel as the rally stalled recently. However, the panic subsided and growth-hungry investors came searching for their favorite stocks in the wreckage. Keeping things in perspective, the economy seems good, and so does earnings growth. Investors may be wondering where the money will be flowing in the second half of the year. Many people may assume healthcare and tech would be the easy targets, primarily because that’s where the earnings growth is. Industrials and staples are no slouches for growth either, but they may be well fully-valued for their growth. Traders will most likely be honing their strategies that they created, trying to beat the market over the next couple of months. 

Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.

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