Another earnings short-squeeze prospect is educational services provider DeVry (DV), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect DeVry to report revenue of $516.64 million on earnings of 82 cents per share.
Just recently, Compass Point initiated coverage on DeVry with a buy rating and a price target of $37 per share. The current short interest as a percentage of the float for DeVry stands at 11%. That means that out of the 56.53 million shares in the tradable float, 6.15 million shares are sold short by the bears.From a technical perspective, DV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently has been uptrending modestly for the last month, with shares moving higher from its low of $30.09 to its intraday high of $33.20 a share. That move is quickly pushing shares of DV within range of triggering a near-term breakout trade post-earnings. If you're bullish on DV, then I would wait until after its report and look for long-biased trades if this stock manages to break out to a new 52-week high above $33.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 855,000 shares. If that breakout triggers, then DV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $42 a share. I would avoid DV or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $30.98 a share and then below more support at $30.09 to $29.36 a share with high volume. If we get that move, then DV will set up to re-fill its previous gap up zone from February that started at around $25.50 a share.
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