My first earnings short-squeeze play is specialty retail player International Speedway (ISCA - Get Report), which is set to report results on Thursday before the market open. This company is the owner of motorsports entertainment facilities and promoter of motorsports themed entertainment activities in the U.S. Wall Street analysts, on average, expect International Speedway to report revenues of $158.65 million on earnings of 40 cents per share.
The current short interest as a percentage of the float for International Speedway is notable at 6.2%. That means that out of the 34.75 million shares in the tradable float, 1.55 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.6%, or by about 122,000 shares. If the bears are caught leaning too hard into this quarter, then we could easily see a solid short-squeeze develop for ISCA post-earnings.>>5 Rocket Stocks Worth Buying in July From a technical perspective, ISCA is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock bottomed after a sharp decline in late May at around $22.98 a share. After hitting that bottom, shares of ISCA have been uptrending strong and making mostly higher lows and higher highs, which is bullish technical price action. That move is quickly pushing the stock within range of triggering a near-term breakout trade. If you're bullish on ISCA, then I would wait until after it reports earnings and look for long-biased trades if this stock can manage to trigger a break out above some near-term overhead resistance at $27.49 to $28.49 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 174,308 shares. If we get that move, then ISCA will have a great chance of re-testing and taking out its 52-week high of $30.90 a share. I would simply avoid ISCA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops below its 50-day at $24.93 and it 200-day at $24.84 a share with high-volume. If we get that move, then ISCA could easily drop towards $24 to $23 a share or possibly much lower if the bears hammer this stock down post-earnings.