Avoiding losses with precision: Our signal called $EWCZ’s 32% Fall

Aaron Harvey | 2 min read | Dec 09, 2024

The Signal: Sell

Performance: -32.04% in 4 days

Timing is everything when it comes to investing—and sometimes, knowing when to sell is just as important as knowing when to buy. Our C-Score flagged EWCZ as a sell, saving investors from a 32% loss in just 4 days.

C-Score analysis:

• Accuracy Score: Consumer spending data indicated declining demand for EWCZ services in key markets, raising concerns about near-term revenue visibility.
• Market Score: The stock was overvalued relative to its moving averages, pointing to limited upside and increased risk.
• Delta Score: A narrowing delta between expectations and actual earnings signaled a muted growth outlook.
• Relevancy Score: Our algorithm detected a weakening correlation between the stock price and key performance indicators (KPI) like franchise growth, a factor Wall Street heavily values.

Result: By following our short-sell signal, investors could have profited handsomely as EWCZ's stock tumbled 32.04% in just 4 days. For long-only investors, our signal helped avoid substantial losses, highlighting the C-Score's precision in volatile markets.

ROI Calculation:

• Sell Signal Date: November 15, 2024, at $8.63 per share.
• Price After Drop: November 19, 2024, at $5.87 per share.
• Shares Sold Short: 1,000.
• Investment (Short Sale): $8,630.
• Proceeds from Drop: $5,870.
• Profit: $2,760.
• ROI: +32.04%

💡 Imagine shorting 1,000 shares of EWCZ at $8.63, with our signal, and closing your position 4 days later at $5.87. That’s a profit of $2,760—without the guesswork. With our C-Score, you could consistently identify these opportunities across the market