This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Hated Stocks Poised to Pop on Earnings

Bed Bath & Beyond

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

My first earnings short-squeeze play is specialty retailer Bed Bath & Beyond (BBBY - Get Report), which is set to report results on Wednesday after the market close. This company sells a range of domestics merchandise and home furnishings. Wall Street analysts, on average, expect Bed Bath & Beyond to report revenue of $2.25 billion on earnings of 84 cents per share.

Wall Street is looking for Bed Bath & Beyond to report first-quarter earnings growth of 17% and a rise of 6.4% in sales this week. This company has posted double-digit EPS gains for 12 quarters in a row, on high single-digit or low double-digit revenue growth. Bed Bath & Beyond has also beaten Wall Street profit estimates in seven of the last eight quarters.

The current short interest as a percentage of the float for Bed Bath & Beyond sits at 2.5%. That means that out of the 223.77 million shares in the tradable float, 5.65 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-covering rally if BBBY delivers the numbers the bulls are looking for.

>>8 Stocks to Help Keep the Bear Market at Bay

From a technical perspective, BBBY is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past five months, with shares soaring from a low of $57.58 to a high of $74.67 a share. During that run, shares of BBBY have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed BBBY within range of triggering a major breakout trade.

If you're bullish on BBBY, then I would wait until after they report earnings and look for long-biased trades if this stock can manage to trigger a break out to a new 52-week high above $74.67 a share with high-volume. Look for volume on that move that hits near or above its three-month average action of 2.6 million shares. If we get that move, then look for BBBY will be trading in all-time high territory. Target a move towards $80 to $85 a share if the bulls gain full control of this stock post-earnings.

I would simply avoid BBBY or look for short-biased trades if after earnings it fails to trigger that breakout to new 52-week highs, and then drops below some near-term support at $72 a share with high volume. If we get that move, then BBBY could easily re-test and possibly take out its 50-day moving average of $70.43 a share post-earnings.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
APOG $41.44 0.00%
BBBY $47.22 0.00%
CLC $58.77 0.00%
MU $10.75 0.00%
SONC $34.37 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs