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 Stocks Set to Soar off Bullish Earnings

Collective Brands

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

Get Adobe Flash player

One earnings short-squeeze play in the retail apparel space is Collective Brands (PSS), which is set to release numbers on Tuesday after the market close. This company is a producer of compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. Wall Street analysts, on average, expect Collective Brands to report revenue of $781.19 million on a loss of 82 cents per share.

This stock is off to a hot start in 2012 with shares up around 20%. Despite that strong start, shares of Collective Brands are still well off its 52-week high of $23.58 as we head towards its earnings report. That said, the stock is within range of triggering a near-term breakout post-earnings.

The current short interest as a percentage of the float for Collective Brands is extremely high at 25.1%. That means that out of the 55.24 million shares in the tradable float, 14.87 million are sold short by the bears. This stock has a massive short interest and a pretty low tradable float. Any good news could easily spark a big short squeeze if the bulls like what they hear.

>>5 Stocks Insiders Love Right Now

From a technical perspective, PSS is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently hit a bottom in November at $11.38 a share, and since then it has run-up towards its current price of $17.24 a share. During that sharp uptrend, the stock has made mostly higher lows and higher highs, which is bullish price action.

If you're bullish on PSS, I would look for long-biased trades after its report if the stock can manage to break out above some near-term overhead resistance at $18 to $18.61 a share with high-volume. Look for volume that registers close to or above its three-month average action of 1.65 million shares. If we get that action, I would target a run in PSS back toward its $23 to $24 a share, or possibly much higher.

I would simply avoid PSS or look for short-biased trades after its report if the stock fails to break out and then takes out some near-term support at $17.02 to $16.50 a share with volume. Target a drop back toward its 50-day moving average of $15.76 a share or its 200-day moving average of $14.31 a share, if the bears slam this stock post-earnings.

5 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 17,129.98 -1.99 -0.01%
S&P 500 1,998.01 -0.97 -0.05%
NASDAQ 4,552.9680 +0.2090 0.00%

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