A potential earnings short-squeeze play in the computer services complex is Vitamin Shoppe (VSI), which is set to report results on Tuesday before the market open. This is a specialty retailer and direct marketer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products. Wall Street analysts, on average, expect Vitamin Shoppe to report revenue of $239.71 million on earnings of 57 cents per share.
Wall Street analysts are looking for Vitamin Shoppe to report earnings that are up 19% and for sales to jump 11%. This company has beaten Wall Street estimates the last four quarters in a row and its coming off a quarter in which it topped forecasts by 6 cents, reporting a profit of 38 cents per share versus a mean estimate of net income of 32 cents per share. This company has averaged year-over-year revenue growth of 14.1% over the last four quarters.The current short interest as a percentage of the float for Vitamin Shoppe is notable at 9.6%. That means that out of the 26.10 million shares in the tradable float, 2.53 million shares are sold short by the bears. This is a decent short interest on a stock with a very low float. If Vitamin Shoppe can produce bullish earnings results, then this stock could easily experience a sizeable short-squeeze post-earnings. >>7 Hot Stocks on Traders' Radars From a technical perspective, VSI is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently broke out above some past overhead resistance at $45.84 to $46.15 a share, and subsequently ran up to a recent high of $49.27 a share. After tagging that all-time high, VSI has pulled back toward its current price near $45 a share. If you're a bull on VSI, I would wait until after its report and look for long-biased trades if this stock can manage to break out to an all-time high above $49.27 a share with high volume. Look for volume on that move that's near or well above its three-month average volume of 316,894 shares. If we get that action, then look for VSI to tag $55 a share or higher if the bulls gain full control of this stock post-earnings. I would simply avoid VSI or look for short-biased trades if after earnings that breakout never triggers, and then the stock drops back below its 50-day moving average of $44.56 a share on heavy volume. If we get that selloff, then look for VSI to trend down toward its 200-day moving average of $41.43 a share or possibly lower 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
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
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
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 Plus 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