With Thanksgiving in the US just a week away and Christmas rapidly approaching, that means the seasonal spending splurge is about to get underway. Here, we’ve looked at a retail penny stock that could be set to soar over the coming weeks as consumers dip their hands in their pockets.
Penny stocks are those stocks that are valued at under $5, and although the cheap price may be enough to entice investors, the high level of risk can often be a major deterrent. Penny stocks usually consist of fallen angels or stocks that are yet to, and may never, live up to their full potential. There have been some amazing success stories with penny stocks over the years, as well as more than a few spectacular failures; thankfully, we’ve been keeping an eye on the market, so you don’t have to. Let’s take a look.
Stage Stores
Stage Stores (NYSE:SSI) is a Houston-based department store company that specializes in brand name apparel, accessories, and cosmetics. This penny stock had been stagnating below the dollar mark for the majority of 2019, as it contended with difficult industry headwinds and the increasing dominance of e-commerce among consumers. Back in October, Stage Stores announced that it would be fully switching to an off-price business model, which has had a hugely positive effect on SSI stock, gaining over 200% in the last two months.
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The company recently reported its Q3 earnings, which saw a 17.4% increase in comparable sales, a clear indication of the success of the new business model. “We are rapidly becoming the best story in retail,” said CEO Michael Glazer during Stage Stores’ third-quarter earnings call, and looking at those numbers, it’s definitely hard to dispute. With consumers always on the lookout for a good bargain, particularly at this time of year, this penny stock could be set for some more huge gains before the year is out—what do you think?
SSI shares are currently trading for $3.04 in New York.
Featured Image: Deposit Photos © AndreyPopov
