This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Set to Pop on Earnings

Vera Bradley

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One final earnings short-squeeze play is Vera Bradley (VRA - Get Report), set to release numbers on Tuesday after the market close. This is a designer, producer, marketer and retailer of accessories for women. The products include offering of handbags, accessories and travel and leisure items. Wall Street analysts, on average, expect Vera Bradley to report revenues of $96.82 million.

I like this stock for a post-earnings short-squeeze play because the bears have cleaned up on this name recently in a big way. This stock has dropped dramatically from its May high of $52.35 a share to its current low of $24.83 a share. That huge drop could be setting up this stock for a sharp rebound if the bulls hear what they're looking for.

The current short interest as a percentage of the float for Vera Bradley is an extremely large 29.5%. That means that out of the 19.74 million shares in the tradable float, 5.83 million are sold short by the bears. It's worth pointing out that the bears have been increasing their bets from the last reporting period by 10.5%, or by around 554,000 million shares. If the bears are pressing too much ahead of this quarter, then this stock could easily see a big short-squeeze.

From a technical standpoint, the stock is currently trading significantly below both its 50-day and 200-day moving averages, which is bearish. That said, the stock just found some buying support at around $25 a share and has since bounced up towards its current price of around $29 a share.

I would look to be a buyer of this stock after they report if it trades above $30 to $31.56 a share on strong volume. Look for volume the following day that's tracking in close to or greater than its three-month average action of 582,000 shares. I would target a run back towards $35 a share (50-day) or possible $38 a share (200-day) if the bulls gain full control of this stock post-earnings.

I would only short this name if it drops below $25 a share on big volume after the company reports its results. I would add to any bearish bets if it then drops below $22.50 a share and ride this stock down with the short-sellers.

To see more potential earnings short squeeze candidates like LDK Solar (LDK), DSW (DSW - Get Report) and Gordmans Stores (GMAN - Get Report), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.


Follow Stockpickr on Twitter and become a fan on Facebook.

-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to and maintains the website, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
LDK $0.00 0.00%
DG $70.19 2.10%
DSW $22.71 2.60%
FMD $4.17 5.30%
GMAN $2.50 3.10%


Chart of I:DJI
DOW 15,929.84 +269.66 1.72%
S&P 500 1,862.45 +33.37 1.82%
NASDAQ 4,334.5250 +67.6880 1.59%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs