My first earnings short-squeeze play today is apparel player PVH (PVH - Get Report), which is set to report results on Monday market the market close. PVH operates as an apparel company in the U.S., Canada, Europe, and internationally. Wall Street analysts, on average, expect PVH to report revenue of $1.34 billion on earnings of $1.20 per share.
PVH has been on fire during 2012, with shares up over 25%. Shares are currently trading just five points off its 52-week high of $93.06 a share.>>5 Consumer Stocks Hedge Funds Love The current short interest as a percentage of the float for PVH sits at 1.6%. That means that out of the 66.69 million shares in the tradable float, 1.11 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short covering rally if PVH can deliver the news the bulls are looking for. From a technical perspective, PVH is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has found buying interest during the last four months whenever it's pulled back to around $73 to $72 a share. Shares of PVH recently triggered a breakout once it took out some near-term overhead resistance at $82.50 to $84.69 a share. Following that breakout, shares of PVH have trended up towards its current price of $88.60. That move has pushed PVH within range of triggering another major breakout trade. If you're bullish on PVH, then I would wait until after they report earnings and look for long-biased trades if this stock can manage to break out above some near-term overhead resistance at $89.31 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 996,583 shares. If we get that action, then PVH will have a great chance of re-testing and possibly taking out its 52-week high of $93.06 a share. If that $93.06 level gets taken out, then we could see PVH hit $100 after earnings. I would simply avoid PVH or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term support at $86 a share with heavy volume. If we get that move, then PVH could easily trade back down towards its 50-day moving average of $80.69 a share, or even its 200-day moving average of $79.78 a share.