C&J Energy Services
My first earnings short-squeeze trade idea is oil well services and equipment player C&J Services (CJES - Get Report), which is set to release its numbers on Wednesday after the market close. This is an independent provider of hydraulic fracturing, coiled tubing and pressure pumping services. Wall Street analysts, on average, expect C&J Energy Services to report revenue of $244 million on earnings of 97 cents per share.
If you're looking for a beaten-down heavily shorted energy name ahead of its earnings report, then make sure to check out shares of C&J Energy Services. Over the prior one-year period, this stock has plunged by 39%, and shares are currently trading just six points above is 52-week low of $12.65 a share.The current short interest as a percentage of the float for C&J Energy Services is extremely high at 36.1%. That means that out of the 35.88 million shares in the tradable float, 12.36 million shares are sold short by the bears. This is a huge short interest on a stock with a relatively low float. If C&J Energy Services can report a strong quarter and raise forward guidance, then this stock could explode to the upside post-earnings. >>7 Energy Stocks That Investors Have All Wrong From a technical perspective, CJES is currently trading above its 50-day moving average, which is bullish. This stock recently sold off hard from its February high of $23.11 to a recent low of $16.15 a share. After hitting that low, shares of CJES have rebounded and started to move back above its 50-day moving average of $18.24 a share. If you're in the bull camp on CJES, I would wait until after its report and look for long-biased trades if it can trigger a break out above some near-term overhead resistance at $19.45 to $20.40 a share with high-volume. Look for volume on that move that registers near or above its three-month average action of 1,449,760 shares. If we get that action, then CJES should easily be able to hit its February high of $23.11 a share or possibly much higher towards $26 a share. I would simply avoid CJES or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then drops back below some near-term support at $17.42 a share with heavy volume. Target a move lower towards $16 to $14 a share if the bears whack this stock down post-earnings.