This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Short-Squeeze Earnings Opportunities to Take

>>5 "Magic Formula" Stocks for 2013

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Navistar International

My first earnings short-squeeze trade idea is Navistar International (NAV - Get Report), which is set to release numbers on Wednesday before the market open. This company produces International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis. Wall Street analysts, on average, expect Navistar International to report revenue of $3.18 billion on a loss of $1.12 per share.

If you're looking for a heavily-shorted stock that's been beaten-down heading into its earnings report, then make sure to check out shares of Navistar International. This stock has been hammered by the bears so far in 2012, with shares off by a whopping 41%.

The current short interest as a percentage of the float for Navistar International is rather high at 16%. That means that out of the 57.62 million shares in the tradable float, 12.58 million shares are sold short by the bears. Any bullish earnings news could easily spark a massive short-squeeze for shares of NAV post-earnings.

From a technical perspective, NAV is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending modestly for the last two months, with shares trading higher from a low of $18.17 a share to its recent high of $22.61 a share. During that uptrend, shares of NAV have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed NAV within range of triggering a near-term breakout trade post-earnings.

If you're bullish on NAV, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $22.61 to $23.47 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1,951,720 shares. If that breakout hits, then NAV will set up to re-test or possibly take out its next major overhead resistance levels at $26.38 a share to its 200-day at $27.08 a share.
2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ATU $27.09 -0.59%
FDS $150.99 -1.40%
HEI $60.90 0.25%
NAV $15.66 3.98%
SAFM $91.56 4.50%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs