Another potential earnings short-squeeze play is software player Aspen Technology (AZPN), which is set to report results on Tuesday after the market close. Wall Street analysts, on average, expect Aspen Technology to report revenues of $53.60 million on a loss of 5 cents per share.
If you're looking for a stock that's within range for a big breakout post-earnings, then make sure to check out shares of Aspen Technology. This stock is currently trading just a few percentage points off of its 52-week high of $18.73 a share as we approach its earnings report.The current short interest as a percentage of the float for Aspen Technology stands at 4%. That means that out of the 82.18 million shares in the tradable float, 3.77 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.9%, or by about 139,000 shares. From a technical standpoint, AZPN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom at around $15.81 to $15.97 a share, and since then it has trended higher back above its 50-day and toward its current price of around $18.15 a share. If you're bullish on AZPN, I would wait until after it report its results and buy the stock once it breaks out above $18.70 to $18.73 high-volume. Look for volume that's tracking in close to or above its three-month average volume of 577,726 shares. If we get that move, I expect to see AZPN pop 10% or more since the stock has a decent short interest and it will be trading at new 52-week highs. I would avoid any long trades or short AZPN after their earnings report if the stock fails to break out and it moves back below its 50-day moving average of $17.36 on high volume. I would target a drop back toward its 200-day at $16.39, or potentially much lower if the bears hammer this stock post-earnings.