Another earnings short-squeeze prospect is global printing services player
(QUAD - Get Report)
, which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Quad Graphics to report revenue of $1.13 billion on earnings of 92 cents per share.
The current short interest as a percentage of the float for Quad Graphics is extremely high at 33.7%. That means that out of the 21.73 million shares in the tradable float, 6.70 million shares are sold short by the bears. If Quad Graphics delivers the earnings news the bulls are looking for, then we could easily see a monster short-squeeze develop post-earnings.
From a technical perspective, QUAD is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the last two months, with shares moving between $19.74 on the downside and $22.32 on the upside. A move above of the upper-end of that range post-earnings could trigger a major breakout trade for QUAD.
If you're bullish on QUAD, 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 $22.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 169,805 million shares. If that breakout triggers, then QUAD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30 a share.
I would avoid QUAD 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 $21.10 to $19.74 a share with high volume. If we get that move, then QUAD will set up to re-test or possibly take out its next major support levels at $19 to $17.69 a share.