My first earnings short-squeeze play is durable goods rent-to-own operator Rent-A-Center (RCII), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Rent-A-Center to report revenue of $787.95 million on earnings of 75 cents per share.
The current short interest as a percentage of the float for Rent-A-Center is very high at 16.1%. That means that out of the 51.73 million shares in the tradable float, 8.34 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 7.2%, or by about 562,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of RCII could easily rip significantly higher post-earnings as the shorts rush to cover some of their positions.
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