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
TheStreet Open House

5 Earnings Stocks Poised to Pop

Stock quotes in this article: ARUN, ATW, PLCE, MENT, BKE

Children's Place Retail Stores

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

Get Adobe Flash player

An earnings short-squeeze play in the retail apparel complex is pure-play children's specialty apparel retailer Children's Place Retail Stores (PLCE), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Children's Place Retail Stores to report revenue of $469.09 million on earnings of $1.27 per share.

This is another stock that's trading in a tight sideways pattern as we get closer to its quarterly report. A move outside of that pattern between $50 and $45 will set this stock up for a big move post-earnings. If that move is above $50, then we are going to see a big short-squeeze since this stock is so heavily shorted.

The current short interest as a percentage of the float for Children's Place Retail Stores is massive at 23.7%. That means that out of the 21.34 million shares in the tradable float, 5.85 million are sold short by the bears. This is a low float high short interest situation. Any bullish earnings news and this stock is going to spike big.

>>5 Retail Stocks to Trade for Gains This Week

From a technical standpoint, this stock is currently trading right at its 200-day moving average and above its 50-day moving average, which is neutral trendwise. This stock plunged from its July high of $49.93 to a recent low of $36.96 a share. Since marking that low, the stock rebounded big and in early October hit $49.96. The stock is now trading in a sideways pattern as it gets ready to enter its next big trend.

If you want to play Children's Place for an earnings short-squeeze play, I would look to be a buyer after it reports if we see a breakout above $50 a share on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 671,800 shares. If we get that breakout post-earnings, then I would target a run back towards the 52-week high of $55.90.

I would only get short this stock after they have reported earnings if shares drop back below its 50-day moving average of $46.36 on heavy volume. I would then add to any short position if this stock takes out $45 to $44 a share on strong volume. Target a drop back towards $41 to $40 if the bears whack this lower post-earnings.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs