Another earnings short-squeeze candidate is Best Buy (BBY), which is set to release numbers on Thursday before the market opens. This company is a multinational retailer of consumer electronics, home office products, entertainment products, appliances and related services. Wall Street analysts, on average, expect Best Buy to report revenue of $17.22 billion on earnings of $2.16 per share.
During the last quarter, Best Buy missed Wall Street estimates by 4 cents after reporting a profit of 47 cents per share. The company also missed Wall Street estimates for its second quarter earnings report. On a positive note, Best Buy could produce its third-straight quarter of revenue increased on the top line. This stock is up over 15% in 2012 as we move closer to its earnings report.The current short interest as a percentage of the float for Best Buy is very high at 17.1%. That means that out of the 279.59 million shares in the tradable float, 47.84 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.8%, or by about 3.05 million shares. From a technical perspective, BBY is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has seen buying interest during the last few months at around $22.30 to $23.40 a share. On the flipside, shares of BBY have run into selling resistance at around $28.22 to $28 a share. If you're bullish on BBY, I would wait until after it reports earnings and only look for long-biased trades if it breaks out above some overhead resistance at $28.33 to $29.50 a share with high-volume. Look for volume on that move that's near or well above its three-month average volume of 5.5 million shares. If we get that action, I would look for BBY to make a run at its 52-week high of $32.85 if the bulls push this higher post-earnings. I would simply avoid BBY or look for short-biased trades if it fails to break out post-earnings above some near-term overhead resistance at $28 a share, and then sells off with heavy volume through its 200-day moving average of $25.94 and 50-day of $25.24. If we get that action, look for BBY to drop back towards $23 to $22 a share if the bears drill this stock. Best Buy, one of the Greenlight Capital's holdings, shows up on a recent list of 3 Shorted Stocks Too Cheap to Sell. 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
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
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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