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Another potential earnings short-squeeze play is online travel research player
TRIP), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect TripAdvisor to report revenue of $223.76 million on earnings of 46 cents per share.
If you're looking for a stock that's a favorite target of the short-sellers that's trending very strong heading into its earnings report this week, then make sure to keep an eye on shares of TripAdvisor. This stock has been on fire so far in 2013, with shares up 31% and with the stock recently tagging a new 52-week high at $55.64 a share.
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The current short interest as a percentage of the float for TripAdvisor sits at 9.8%. That means that out of the 106.86 million shares in the tradable float, 10.95 million shares are sold short by the bears. This is a decent short interest, so any bullish earnings news could easily spark a solid short-covering rally for shares of TRIP post-earnings.
From a technical perspective, TRIP is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares soaring higher from its low of $42 to its recent 52-week high of $55.64 a share. During that uptrend, shares of TRIP have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TRIP within range of triggering a major breakout trade post-earnings.
If you're in the bull camp on TRIP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $55.64 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 1.86 million shares. If that breakout triggers, then TRIP will set up to enter new 52-week-high and all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $70 a share.
I would simply avoid TRIP 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 at $52 a share with high volume. If we get that move, then TRIP will set up to re-test or possibly take out its 50-day at $50.85 a share. Any high-volume move below its 50-day could then put $48 to $44 a share into range for share of TRIP.