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My first earnings short-squeeze trade idea today is apparel and accessories player
Oxford Industries(OXM - Get Report), which is set to report its numbers on Tuesday after the market close. This is an apparel design, sourcing and marketing company that features a portfolio of owned and licensed brands of clothing and golf apparel. Wall Street analysts, on average, expect Oxford Industries to report revenue of $192.30 million on earnings of 54 cents per share.
This company is looking to continue its bullish streak of earnings reports this week as it goes for its four consecutive quarter of topping Wall Street estimates. Oxford Industries' profit has trended higher year over year by an average of more than fourfold over the past five quarters. The stock is around three points off its
52-week high of $52.64 ahead of its earnings report.
The current short interest as a percentage of the float for Oxford Industries is notable at 6.7%. That means that out of the 13.86 million shares in the tradable float, 932,000 shares are sold short by the bears. This is a decent short interest on a stock with a very low float. Any bullish earnings news could easily set this stock up to skyrocket as the shorts cover some of their bets.
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From a technical perspective, OXM is currently trading above both its 50-day and 200-day
moving averages, which is bullish. This stock recently found some buying interest at around $46 to $46.40 a share, before trending higher back above its 50-day moving average of $49.62. This uptrend has now pushed OXM within range of a triggering a breakout trade post-earnings.
If you're bullish on OXM, I would look for long-biased trades following its earnings report if the stock takes out some near-term overhead resistance at $50.90 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 146,703 shares. If we get that action, then I would add to any long positions once OXM takes out some more overhead resistance at $52.64 a share. Target a run toward $55 or higher if the bulls push this stock up post-earnings.
I would avoid OXM or look for short-biased trades after earnings if the stock fails to breakout over $50.90 and then drops back below its 50-day moving average of $49.62 with high-volume. If we get that action, I would target a drop back towards that near-term support at $46 or possibly much lower if the bears hammer this stock down post-earnings.