NEW YORK (TheStreet) -- Next week may have cooled off in the number of companies reporting earnings, but at least one company in my list is likely to heat up the chart.
Expectations: FuelCell is anticipated to report better second-quarter results with a loss of "only" 5 cents per share, beating a loss of 10 cents from the same period last year. Revenue is climbing fast, with sales growth expected to increase over 17% to $33.5 million. FuelCell revenue for the same quarter last year was $28.6 million. The stock has ripped higher this week. Opening Tuesday, May 29, at $1.03, and by Thursday, May 31, FuelCell was trading near $1.40. FuelCell is benefiting from lower natural gas prices. Guidance will be key to price direction. Even if FuelCell reports a loss, if the company guides higher and moves out of the red, a two- or three-banger is well within reach. Of course, FuelCell will have to deliver, but the timing appears good. FuelCell has a short interest of 5.8%, not enough to create a massive short squeeze, albeit enough to put some legs under a move higher if the earnings report is favorable. FuelCell's reported production is currently five days a week and they may move to seven days a week. Dollar General (DG) Dollar General is scheduled to release last fiscal quarter's results after the closing bell on June 4. Let's take a look at how Dollar General has done in recent quarters. Who They Are: Dollar General is a discount retailer. Its stock trades an average of 2.5 million shares per day with a marketcap of $16.4 billion. Dollar General is anticipated to report impressive first-quarter earnings. The consensus estimate is currently 59 cents a share, an improvement of 22.9% from the same period last year's 48 cents. Expect revenue to climb another 10.7% to reach $4.33 billion. Dollar General trades at a slightly rich price-to-earnings multiple of 20.6, with very little short interest of 1.5%. Dollar General's chart is picture perfect for trend followers. All the major moving-price averages are increasing in lock step. Each price drop in shares represented a buying opportunity and shares are making new 52-week highs. The real question is can management continue to deliver and is the share price becoming extended? I would wait for a pullback in price, however, if Dollar General beats, the wait could turn into a long time.
The Pep Boys (PBY) Who They Are: Pep Boys - Manny, Moe & Jack is a leading automotive retail and service chain. Pep Boys trades an average of 2 million shares per day with a marketcap of $469 million. Pep Boys is anticipated to report dismal first-quarter earnings after the closing bell on June 7. The consensus estimate is currently 2 cents a share, a decline of 21 cents from 23 cents during the same period last year. Poor earnings expectations were cited as the motivation for private equity Gores Group to walk away from a $15 a share offer to takeover Pep Boys. Pep Boys doesn't look very attractive to me either at $15 a share, but under $10 with a forward price-to-earnings multiple of 10, the worst may be over for investors. $50 million (96 cents per share) penalty from Gores Group for not completing the buyout will help ease the pain. Francesca's Holdings (FRAN) Who They Are: Francesca is a specialty retailer of women's apparel products and trades an average of 1.3 million shares per day with a marketcap of $983 million. Francesca is anticipated to report profound first-quarter earnings growth after the closing bell on June 7. The consensus estimate is currently 18 cents a share, an improvement of 8 cents from 10 cents during the same period last year. Francesca's share price has rode a roller coaster as a result of previous good numbers combined with firing former CFO Gene Morphis. Francesca may appear bargain bin priced, however, the price-to-earnings multiple is still very high at 41. Ulta Salon, Cosmetics & Fragrance (ULTA) Who They Are: ULTA is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services trades an average of 1.2 million shares per day with a marketcap of $5.6 billion. ULTA is anticipated to report improving first-quarter earnings after the closing bell on June 5. The consensus estimate is currently 53 cents a share, an improvement of 16 cents from the same period last year. Author does not hold a position in any stock mentioned at the time of writing. Author may enter into a long FuelCell position before earnings release. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.