ICU Medical

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Another earnings short-squeeze prospect is maker of custom-made IV products ICU Medical ( ICUI), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect ICU Medical to report revenue of $83.43 million on earnings of 66 cents per share.

During the last quarter, this company reported revenue of $74.3 million and GAAP reported sales were 1.6% lower than the prior-year quarter's $75.5 million. Also during the last quarter, EPS was 58 cents per share and GAAP EPS was 58 cents per share, which was 9.4% higher than the prior-year quarter's 53 cents per share.

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The current short interest as a percentage of the float for ICU Medical is pretty high at 9.7%. That means that out of the 12.83 million shares in the tradable float, 1.24 million shares are sold short by the bears. This is a decent short interest on a stock with a very low float. Any bullish earnings news could set off a monster short-squeeze for shares of ICUI post-earnings.

From a technical perspective, ICUI is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the last month and change, with shares moving between $71.76 on the downside and $76.64 on the upside. A high-volume move above the upper end of its recent range could trigger a major breakout trade for shares of ICUI post-earnings.

If you're bullish on ICUI, 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 levels at $76.31 to its 52-week high at $76.64 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 121,890 shares. If that breakout hits, then ICUI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $85 to $90 a share.

I would avoid ICUI 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 of $71.17 a share with high volume. If we get that move, then ICUI will set up to re-test or possibly take out its next major support levels at $66.78 to its 200-day at $62.80 a share.

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