Another earnings short-squeeze trade candidate in the specialty retail complex is Tiffany (TIF), 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. Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV