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5 Stocks Set to Soar off Bullish Earnings

Ezcorp

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One more earnings short-squeeze candidate is pawn shop operator Ezcorp (EZPW), one of TheStreet Ratings' top-rated consumer finance stocks, which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Ezcorp to report revenue of $226.47 million on earnings of 70 cents per share.

This pawn shop player matched Wall Street estimates last quarter, but traders will be looking for a beat this time around since their positioned in the right spot for a weak economy. Ezcorp's profits have trended up year-over-year by an average of 26.6% over the past five quarters. A solid beat and bump up in guidance should set this stock off on a solid short-squeeze.

The current short interest as a percentage of the float for Ezcorp stands at 6.1%. That means that out of the 43.54 million shares in the tradable float, 2.68 million are sold short by the bears.

>>5 Black Friday Short-Squeeze Stocks

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. The stock formed a triple top back in July around $38.50 to $38 a share, and subsequently plunged to a recent low of $25.30. Since hitting that low, the stock has rebounded to its current price of around $28 a share.

If you're bullish on this stock, I would wait until after its report and look to get long once the stock breaks out above $28 to $31 share on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 580,200 shares. A high-volume move above those levels should set up EZPW to re-test its next significant resistance level at around $34 a share.

I would get short this stock after earnings only if it trades below $26 to $25.30 a share on heavy volume. A drop below those levels should set this stock up for a move lower towards $20 if the bears hammer this name post-earnings. To see more potential earnings short squeeze plays, including Caribou Coffee (CBOU), Abraxas Petroleum (AXAS) and SodaStream International (SODA), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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Stock quotes in this article: PANL, ROVI, SGI, MCZ, EZPW 
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 Beconequity.com and maintains the website Maddmoney.net, 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.

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