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Another potential earnings short-squeeze play is diversified machinery player
Clarcor(CLC - Get Report), which is set to release its numbers on Wednesday after the market close. This company is a provider of filtration products, filtration systems and services, and consumer and industrial packaging products. Wall Street analysts, on average, expect Clarcor to report revenue of $305.68 million on earnings of 70 cents per share.
If you're looking for a stock that's trending up heading into its earnings report this week, then make a sure to check out shares of Clarcor. This stock is risen about 5% in the last six months and it's trading just four points off its
52-week high of $54.22 a share.
The current short interest as a percentage of the float for Clarcor is notable at 4.7%. That means that out of the 49.34 million shares in the tradable float, 2.34 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 19.9%, or by about 389,000 shares. If the bears are caught leaning too hard into this quarter, then we could easily see a sizable short squeeze develop post-earnings.
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From a technical perspective, CLC is currently trading above both its 50-day and 200-day
moving averages, which is bullish. During the last two months and change, shares of CLC have trended higher from a low of $45.84 to a high of $50.87 a share. During that right, shares of CLC have consistently made higher lows and higher highs, which is bullish technical price action. That move now sets up CLC to trigger a near-term
breakout trade post-earnings.
If you're in the bull camp on CLC, then I would wait until after they report numbers and look for long-biased trades if this stock can manage to trigger a break a near-term breakout above $50.87 to $52.03 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 291,239 shares. If we get that action, then CLC could re-test and possibly take out its 52-week high of $54.22 a share.
I would simply avoid CLC or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then trades back below both its 50-day moving average at $48.84 and its 200-day moving average at $48.34 a share with high volume. If we get that move, then look for CLC to trade back to $47 to $46 a share or possibly lower if the bears hammer this down post-earnings.