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The following is a list of three stocks releasing earnings over the next couple of days that have seen a significant decrease in short interest between Feb. 15 to March 15.

Given that short sellers seem to be exiting these stocks, it seems like the market is expecting good news from the upcoming earnings releases. Which of the following of names do you think is most likely to surprise on the upside?

click for expanded images

List sorted by change in short interest.

1. Wonder Auto Technology, Inc. (OTCPK:WATG): Auto Parts Industry. Market cap of $182.84M. Earnings release scheduled for Apr-14. Short float at 13.55%. Shares shorted decreased by -10.22%, from 3.62M to 3.25M shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock has performed poorly over the last month, losing 19.64%.

2. Bank of the Ozarks, Inc. (OZRK): Regional Bank. Market cap of $763.92M. Earnings release scheduled for Apr-13. Short float at 19.7%. Shares shorted decreased by -2.8%, from 2.86M to 2.78M shares. The stock has gained 22.13% over the last year.

3. Fastenal Co. (FAST): General Building Materials Industry. Market cap of $9.93B. Earnings release scheduled for Apr-12. Short float at 10.13%. Shares shorted decreased by -1.74%, from 13.77M to 13.53M shares. The stock has gained 31.86% over the last year.

Source: 3 Squeeze Candidates Seeing Short Covering Ahead of Earnings