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

G-III Apparel Group

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

Get Adobe Flash player

My first earnings short-squeeze trade idea is apparel player G-III Apparel Group (GIII), which is set to release its numbers on Thursday before the market open. This company designs, manufactures and markets a range of outerwear, women's sportswear and dresses, including coats, jackets, pants, women's suits and women's performance wear. Wall Street analysts, on average, expect G-III Apparel Group to report revenue of $310.78 million on earnings of 29 cents share.

On Tuesday, Stifel Nicolaus raised its price target from $27 to $31 on G-III Apparel Group ahead of its fourth quarter earnings report. Nicolaus expects the fourth quarter to be challenging but thinks investors will be focused on G-III's 2013 outlook.

The current short interest as a percentage of the float for G-III Apparel Group is rather high at 13.2%. That means that out of the 14.34 million shares in the tradable float, 2.09 million shares are sold short by the bears.

>>5 Stocks Setting Up to Break Out

From a technical perspective, GIII is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock just recently started to move back above its 200-day moving average of $26.20 on decent volume. That move now puts the stock within range of triggering a near-term breakout trade post-earnings.

If you're bullish on GIII, I would wait until after its report and look for long-biased trades if this stock breaks out above some near-term overhead resistance at $27.41 a share with high volume. Look for volume that's near or well above its three-month average action of 169,236 shares. If we get that action, then this stock could make a run at its next significant overhead resistance level at $29.75 or possibly higher if the bulls gain full control of GIII post-earnings.

I would simply avoid GIII or look for short-biased trades if after earnings this stock fails to break out above $27.41, and then drops below $25.44 to $24.58 (its 50-day) with volume. Target a drop back toward $23.48 or possibly even down to $21 if the bears hammer this stock lower post-earnings.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • 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