5 Stocks Set to Soar on Bullish Earnings
My final earnings short-squeeze play today is retail apparel player Express (EXPR), which is set to release numbers on Wednesday before the market open. This company is a specialty apparel and accessory retailer offering both women's and men's merchandise. Wall Street analysts, on average, expect Express to report revenue of $467.43 on earnings of 17 cents per share.
If you're looking for a beaten-down heavily-shorted stock ahead of its earnings report this week, then make sure to check out shares of Express. This stock has been hammered by the sellers during the last six months, with shares off by over 25%. This stock is currently trading just two points off its 52-week low of $15.34 a share as we approach its earnings report.The current short interest as a percentage of the float for Express is notable at 8.9%. That means that out of the 84.44 million shares in the tradable float, 7.6 million are sold short by the bears. This is a decent short interest on a stock with a relatively low float. Any bullish earnings news from EXPR could easily send this stock soaring post-earnings. From a technical perspective, EXPR is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock topped out at around $18.90 a share in July and subsequently dropped to its recent low of $15.34 a share. During that sharp move lower, shares of EXPR were consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has found buying interest at around $15.34 to $15.49 a share, and it's now ripped higher towards its current price of $17 a share. If you're bullish on EXPR, then I would wait until after they report earnings and look for long-biased trades if it can manage to trigger a breakout trade above its 50-day moving average of $17.27 a share with high volume. If we get that action, then look for EXPR to re-test and possibly take out its next significant overhead resistance levels at $18.97 to $19.42 a share post-earnings. Any move above $19.42 will give EXPR a chance to re-fill some of a previous gap down that started at $23 a share. I would simply avoid EXPR after earnings if it fails to trigger that breakout, and then moves back below some major near-term support at $15.34 a share with heavy volume. If we get that move, then look for EXPR to re-test and possibly take out its next significant support levels at $14 to $13.06 a share post-earnings. Keep in mind that any move below $15.34 will mean EXPR is trading at a new 52-week low, which is bearish technical price action. To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
Twitter and become a fan on Facebook. -- Written by Roberto Pedone in Winderemere, Fla.
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 + 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