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One more earnings short-squeeze candidate is pawn shop operator
Ezcorp(EZPW - Get Report), 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
Abraxas Petroleum(AXAS) and
SodaStream International(SODA), check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.