One potential earnings short-squeeze candidate is Matthews International (MATW - Get Report), which is set to release numbers on Thursday after the market close. This is a designer, manufacturer and marketer principally of memorialization products and brand solutions. Wall Street analysts, on average, expect Matthews International to report revenue of $220.48 million on earnings of 43 cent per share.
If you're looking for a stock with a decent short interest that's been uptrending strongly heading into its quarterly earnings report, then make sure to check out shares of Matthews International. This stock has returned 11.6% during the last three months and shares are currently trading just two points off its 52-week high of $34.36 a share.
The current short interest as a percentage of the float for Matthews International is pretty high at 8.3%. That means that out of the 26.60 million shares in the tradable float, 2.22 million shares are sold short by the bears. Any bullish earnings news could easily spark a large short-squeeze for MATW post-earnings.From a technical perspective, MATW is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strongly for the last two months, with shares soaring from its low of $27.32 to its recent high of $33.46 a share. During that uptrend, shares of MATW have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed MATW within range of triggering a near-term breakout trade post-earnings. If you're bullish on MATW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $33.46 to $34.36 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 90,007 shares. If that breakout triggers, then MATW will set up to re-test or possibly take out its next major overhead resistance levels at $36 to $37.19 a share. I would avoid MATW 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 $32.50 to $31.43 a share with high volume. If we get that move, then MATW will set up to re-test or possibly take out its 50-day at $30.99 a share or its 200-day at $30.33 a share.