Buffalo Wild Wings
An earnings short-squeeze candidate in the restaurants complex is Buffalo Wild Wings (BWLD), which is set to release numbers on Tuesday after the market close. This is an owner, operator and franchisor of restaurants featuring a variety of menu items, including its Buffalo, New York-style chicken wings spun in any of its 14 signature sauces or four signature seasonings. Wall Street analysts, on average, expect Buffalo Wild Wings to report revenue of $250.92 million on earnings of 95 cents per share.
This company is aiming to top Wall Street estimates for the third quarter in a row. Last quarter, it beat Wall Street estimates with a profit of 73 cents per share against a mean estimate of 67 cents per share. Buffalo Wild Wings has registered double-digit revenue growth during the past four quarters. The company has averaged year-over-year revenue growth of 27.8% over the last four quarters. The company is looking to extend its trend of income increases for the fourth quarter in a row this earnings period.The current short interest as a percentage of the float for Buffalo Wild Wings is rather high at 11.4%. That means that out of the 18.15 million shares in the tradable float, 2.07 million are sold short by the bears. This is a low float high short interest situation, so any positive earnings and bullish guidance from BWLD could easily spark a notable short-squeeze post-earnings. From a technical perspective, BWLD is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock gapped up big back in February from around $70 to over $80 a share on monster volume. Since gapping up big, this stock has trended above the gap and has found buying interest whenever it's dropped into the low $80s. If you're a bull on BWLD, then I would consider long-biased trades after they report if this stock can manage to trigger a near-term breakout above $86.19 to $87.12 (its 50-day) a share with high-volume. Look for volume on a move above those levels that's near or well above its three-month average action of 710,495 shares. If we get that action, then look for BWLD to make a run at its recent high of $94.81 a share or possibly higher post-earnings. I would simply avoid BWLD or look for short-biased trades if the stock fails to trigger that breakout, and then drops back below some near-term support at $81.97 a share with heavy volume. If we get that action, then look for BWLD to potentially fill some of that massive gap-up from back in February. Buffalo Wild Wings shows up on a list of 10 Small-Cap Stocks Poised to Rise, History Shows.
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