Another potential earnings short-squeeze trade idea is regional banking player Home Bancshares (HOMB), 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.
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