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Another earnings short-squeeze candidate is
Accretive Health (
AH), which provides of services that help health care providers generate sustainable improvements in their operating margins and health care quality. It is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Accretive Health to report revenue of $236.49 million on earnings of 9 cents per share.
The current short interest as a percentage of the float for Accretive Health is very high at 18.6%. That means that out of the 51.07 million shares in the tradable float, 10.57 million shares are sold short by the bears. This is high short interest on a stock with a relatively small float. If the bulls get the earnings news they're looking for, then this stock could easily rip higher post-earnings.
From a technical perspective, AH is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month, with shares moving higher from its low of $8.91 to its intraday high of $10.89 a share. During that uptrend, shares of AH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AH within range of triggering a near-term breakout trade post-earnings.
If you're bullish on AH, 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 at $11 a share and then once it takes out its 200-day at $11.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 875,449 shares. If we get that breakout, then AH will set up to re-test or possibly take out its next major overhead resistance levels at $13 to $13.50 a share, or even $14 a share.
I would avoid AH 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 $10.01 a share with high volume. If we get that move, then AH will set up to re-test or possibly take out its next major support level at $8.90 a share.
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