One earnings short-squeeze candidate in the construction and agriculture machinery complex is Lindsay (LNN), which is set to report results on Wednesday before the market open. This company is a provider of range of water management and road infrastructure products and services. Wall Street analysts, on average, expect Lindsay to report revenue of $129.90 million on earnings of 83 cents per share.
This company has jumped back and forth between beating Wall Street estimates during the past fiscal year. Lindsay's profit has trended higher year over year by an average of 50.3% over the past five quarters. This stock is trading well off its 52-week high of $85.87 as we approach its earnings report.The current short interest as a percentage of the float for Lindsay is rather high at 11.3%. That means that out of the 12.43 million shares in the tradable float, 1.40 million are sold short by the bears. This is a high short interest on a stock with a very low tradable float. If Lindsay can report a solid quarter and bullish forward guidance, then this stock could soar post-earnings due to its low float and 11.3% short interest. >>5 Breakout Trades to Take From Twitter From a technical perspective, LNN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock gapped up strong on Monday breaking out above some near-term overhead resistance at $67.27 a share with heavy volume. Volume registered 317,000 shares versus its three-month average daily action of 128,913 shares. That move now puts LNN within range of triggering another big breakout post-earnings. If you're bullish on LNN, I would look for long-biased trades after earnings if this stock continues to trend above that recent breakout price of $67.27 with strong volume flows. Look for upside volume that registers near or well above its three-month average action of 128,913 shares. If we get that action, then I would add to any long positions if LNN breaks out above some past overheard resistance at $72.70 a share with volume. Target a run toward $75 or higher if the bulls gain full control of this stock post-earnings. I would simply avoid LNN or look for short biased trades if after earnings this stock fails to hold above that breakout level of $67.27 and Monday's low of $66.63 a share. If you see a heavy volume move back below those levels, then look for LNN to re-test its 50-day moving average of $62.74 a share, or possibly its 200-day moving average of $59.38 post-earnings.
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