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My final earnings short-squeeze idea is trucking and transportation logistics player
J.B. Hunt Transport Services(JBHT - Get Report), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect J.B. Hunt Transport Services to report revenue of $1.15 billion on earning of 52 cents per share.
This company is shooting for its eighth straight quarter of double-digit earnings and sales growth. As we approach their report, the stock is trending very strong and trading just a few points off its 52-week high of $56.09.
The current short interest as a percentage of the float for J.B. Hunt Transport Services sits at 4.8%. That means that out of the 90.12 million shares in the tradable float, 4.35 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.7%, or by about 274,000 shares.
From a technical perspective, JBHT is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending strong for the last six months, rising from a low of $40.40 to its recent 52-week high of $56.09 a share. That move now has JBHT within range of triggering a major breakout post-earnings.
If you're a bull on JBHT, I would wait until after its report and look for long-biased trades if the stock breaks out to a new 52-week high above $56.09 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 884,405 shares. If we get that action, look for JBHT to make a run at $60 a share or possibly much higher.
I would simply avoid JBHT or look for short biased trades if it fails to print a new 52-week high, and then sells off with heavy volume below its 50-day moving average of $52.73 a share. If we get that action, look for JBHT to drop towards $50 to $48 a share or possibly lower if the bears whack this stock down post-earnings.
To see more potential earnings short squeeze plays, check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.