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Another stock with the potential to see an earnings short-squeeze is
PVH Corp(PVH - Get Report), which is set to release results on Tuesday after the market close. This company designs and markets branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. Wall Street analysts, on average, expect PVH to report revenues of $1.28 billion on earnings of 95 cents per share.
This company is on deck to potentially beat Wall Street estimates for the fifth consecutive quarter. If they do continue with that trend and also raise their guidance, then this stock could potentially make a large move post-earnings to the upside.
Barclays recently issued a note where they maintained their overweight rating and price target of $80 a share on this stock. A Barclays analyst said they expect revenue of $1.28 billion, representing top-line growth of 16.4% over the same period last year. They see a strong revenue increase of 25.8% and 10.1% for the Tommy Hilfiger and Calvin Klein brands.
The current short interest as a percentage of the float for PVH sits at around 4.2%. That means that out of the 60.20 million shares in the tradable float, 2.58 million are sold short by the bears. This isn't a huge short interest, but it's enough to spark a sharp rally if PVH can report a strong quarter and guide higher.
From a technical standpoint, this stock is trading below its 50-day moving average but above its 200-day moving average, which is neutral trendwise. The stock recently fell from a July high of $75.86 a share to a recent low of $51.15 a share. Since that low, the stock has rebounded sharply back up towards $64 a share.
I would only be a buyer of this stock after they report if it trades above its 50-day moving average of $66.09 on strong volume. Look for volume the following day that's on track to be near or greater than its three-month average action of 1.2 million shares. I would target a run back towards $73 or possible the 52-week high of $75.86 a share if the bulls win the battle post-earnings.
I would only short this stock if it drops below $60 a share after they report their results on strong volume. I would add to any short position if it then drops below $56 a share, and I would target a drop back towards that big previous support zone at $51 a share. One way to confirm that this stock is going to drop post-earnings is if it fails to clear the 50-day and then drops on big volume through its 200-day moving average of $64.34 a share.