3 Short Squeeze Stocks About To Report Earnings
A short squeeze takes place when short sellers rush to cover their short positions when a stock starts to move up. This gives traders some interesting opportunities.
If a stock is heavily shorted, and there is any good news, it could spike. One of the most common types of good news is earnings that beat analyst estimates -- here are a few heavily stocks with coming earnings announcements.
Pilgrim's Pride Corporation (NASDAQ: PPC) has an incredible 60 percent of its float shorted. It has a short interest ratio of 16; this means that it would take 16 days for short sellers to cover their positions based on the current daily volume.
The stock trades at 9 times trailing earnings and 11 times forward earnings.
The company is expected to report between April 27 and May 1.
King Digital Entertainment PLC (NYSE: KING) has 26 percent of its float held currently short, with a days to cover ratio of 11. The stock has a current price to earnings ratio of 9 and forward PE of 8. It expects to report between May 5 and May 11.
One more stock that short sellers are all over is NeuStar Inc (NYSE: NSR), with 57 percent shorted, and a short interest ratio also of 11. The stock trades at 9 times trailing earnings and 10 times forward earnings.
The company will likely make its earnings announcement between April 14 and April 20.
Disclosure: Author didn't own any of the above at the time the article was written.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.