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Another earnings short-squeeze trade candidate in the specialty retail complex is
Tiffany (TIF - Get Report), which is set to report results on Tuesday before the market open. This company, through its subsidiaries, sells fine jewelry and other items that it manufactures or has been made by others. Wall Street analysts, on average, expect Tiffany to report revenue of $1.19 billion on earnings of $1.42 per share.
This company has been on a roll beating Wall Street estimates the last four quarters in a row and is coming off a quarter in which it beat estimates by 10 cents, reporting a profit of 70 cents vs. a mean estimate of 60 cents per share. Tiffany has registered double-digit year-over-year percentage revenue growth for the past four quarters. Its net income has trended higher for three straight quarters.
The current short interest as a percentage of the float for Tiffany is 3.9%. That means that out of the 114.24 million shares in the tradable float, 4.96 million are sold short by the bears. This isn't a huge short-interest, but it's more than enough to spark a decent short covering really if Tiffany delvers what the bulls are looking for.
From a technical perspective, TIF is currently trading above its 50-day
moving average and below its 200-day moving average, which is neutral trendwise. This stock recently high of $70.59 a share, but has pulled back off that level and moved back below its 200-day moving average of $69.56, with shares trading at around $68.70 a share.
If you're bullish on TIF, I would look for long-biased trades after its earnings report if this stock breaks out above $70.59 a share with high-volume. Look for upside volume that registers near or well above its three-month average action of 2.24 million shares. If we get that action, then look for TIF to make a run at $75 to $78 a share post-earnings.
I would simply avoid TIF or look for short-biased trades if this stock fails to break out over $70.59 a share, and then drops below some near-term support at $67 with high-volume. If we get that action, I would look for TIF to drop back toward its 50-day moving average of $64.69 a share or possibly lower if the bears beat it down post-earnings.
Tiffany, one of the
top-yielding specialty retail stocks, shows up on recent lists of
10 Stocks Owned by the Best Fund Managers and
13 Dividend Stocks to Compete With Buffett.