Another potential earnings short-squeeze candidate in the alcoholic beverages complex is Boston Beer (SAM), which is set to release numbers on Wednesday after the market close. This company is a craft brewer in the United States. Wall Street analysts, on average, expect Boston Beer to report revenue of $112.13 million on earnings of 40 cents per share.
Recently, Auriga said it's maintaining its buy rating on the stock and its $100 price target. The firm said it expects Boston Beer to benefit from continued growth of its seasonal beers as well as that from Twisted Tea, which is being rolled out to new markets this year. Auriga also cautioned that this quarter will likely see higher component costs and higher shipping costs.The current short interest as a percentage of the float for Boston Beer is extremely high at 34.5%. That means that out of the 8.22 million shares in the tradable float, 2.87 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.6%, or by about 73,000 shares. The bears could be in for a world of hurt if Boston Beer can crush estimates and raise forward guidance, since the stock has such a low float and high short interest. >>12 Highest-Rated Consumer Stocks Picked by S&P From a technical perspective, SAM is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock ripped back above its 50-day moving average of $101.20 a share on Monday on above average volume. That move has now pushed the stock within range of triggering a major breakout post-earnings, if the company can deliver what the bulls are looking for. If you like the look of SAM here, then I would wait until after they report and look for long-biased trades if this stock can trigger a break out above some near-term overhead resistance at $107.18 to $108.16 a share with high-volume. Look for volume on that move that clocks in close to or above its three-month average action of 115,757 shares. If we get that move, then SAM can easily skyrocket above its December high of $115.49 since it will be trading in all-time high territory. I would avoid SAM or look for short-biased trades if the stock fails to trigger that breakout, and then drops back below its 50-day moving average of $101.20 and then below some near-term support at $97.47 a share with high-volume. Target a fall back towards its 200-day moving average of $94.27 a share or possibly much lower if the bears spark a big selloff post-earnings.
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