Barnes & Noble
Another potential earnings short-squeeze play is Barnes & Noble (BKS - Get Report), which is set to release its numbers on Thursday before the market open. This company is engaged in sale of trade books, mass market paperbacks, children's books, bargain books, magazines, gift, music and movies direct to customers. Wall Street analysts, on average, expect Barnes & Noble to report revenue of $1.88 billion on a loss of 11 cents per share.
If you're looking for a heavily-shorted stock that's been uptrending strong heading into its earnings report, then make sure to check out shares of Barnes & Noble. This stock has been on fire during the last three months, with shares up a whopping 30%.
The current short interest as a percentage of the float for Barnes & Noble is extremely high at 35.3%. That means that out of the 36.50 million shares in the tradable float, 13.09 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then this stock could explode higher post-earnings as the shorts rush to cover some of their bets.From a technical perspective, BKS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last three months, with shares rising from a low of $11.17 to its recent high of $17.10 a share. During that uptrend, shares of BKS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed BKS within range of triggering a major breakout trade post-earnings. If you're in the bull camp on BKS, then I would wait until after its report and look for long-biased trades once it manages to break out above some key overhead resistance levels at $17.10 to $17.68 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1,055,720 shares. If that breakout triggers, then BKS will set up to re-test or possibly take out its next major overhead resistance levels at $19.58 to $21 a share.