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 Earnings-Related Short-Squeeze Plays

I would simply avoid FINL or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 52-week low of $17.41 a share with high volume. If we get that move, then FINL will set up to re-test or possibly take out its next major support level at $16.16 a share.

Family Dollar Stores

Another potential earnings short-squeeze play is Family Dollar Stores (FDO), which is set to release its numbers on Thursday before the market open. This company operates more than 6,600 general merchandise retail discount stores in 44 states. Merchandise assortment includes consumables, home products, apparel accessories, seasonal and electronics. Wall Street analysts, on average, expect Family Dollar Stores to report revenue of $2.38 billion on earnings of 75 cents per share.

During the last quarter, this company reported a profit of 75 cents per share versus a mean estimate of 75 cents per share. This occurred after two consecutive quarters of topping Wall Street estimates. This company is looking to register its fifth straight quarter of revenue increases when it reports this week, and its fourth straight quarter of positive earnings.

The current short interest as a percentage of the float for Family Dollar Stores stands at 4.4%. That means that out of the 87.35 million shares in the tradable float, 4.87 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 11.6%, or by about 506,000 shares. If the bears are caught leaning too hard into this quarter, then we could see shares of FDO spike notably higher post-earnings.

From a technical perspective, FDO is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month and change, with shares dropping from a high of $72.30 to its recent low of $61.90 a share. During that downtrend, shares of FDO have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of FDO have started to bump up against oversold territory, since its current relative strength index (RSI) reading is 33.
3 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
FDO $0.00 0.00%
ANGO $10.27 0.00%
FINL $18.04 0.00%
NAUH $2.04 0.00%
SONC $27.11 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs