Another potential earnings short-squeeze trade idea is regional banking player Home Bancshares (HOMB - Get Report), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Home Bancshares to report revenue of $53.92 million on earnings of 65 cents per share.
The current short interest as a percentage of the float for Home Bancshares sits at 4.4%. That means that out of the 22.32 million shares in the tradable float, 1.01 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-squeeze if the company can deliver the earnings news the bulls are looking for.
From a technical perspective, HOMB is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading sideways for the last month and change, with shares moving between $32 on the downside and $34.12 on the upside. A move above the upper-end of that range post-earnings will trigger a breakout trade for shares of HOMB.If you're in the bull camp on HOMB, 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 $34.12 to $34.27 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 80,175 shares. If that breakout hits, then HOMB will set up to re-test or possibly take out its next major overhead resistance levels at $35.56 to $35.84 a share. Any move above $35.84 would then push HOMB into new 52-week-high territory, which is bullish technical price action. I would simply avoid HOMB or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at its 50-day of $33.17 and then $32 a share with high volume. If we get that move, then HOMB will set up to re-test or possibly take out its 200-day moving average of $30.99 a share.