Earnings season is here again - do you have a watch list prepared?
For ideas, we ran a screen on next week's reporting companies for those with bullish trends in shares shorted, with significant decreases in shares shorted month-over-month, expressed as a percent of share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these companies will report strong earnings? Use this list as a starting point for your own analysis.
List sorted by decrease in shares shorted as a percent of share float.
1. World Acceptance Corp. (NASDAQ:WRLD): Engages in small-loan consumer finance business. Market cap of $997.28M. Earnings to be released on 01/25. Shares shorted has decreased from 2.59M to 2.11M month-over-month, a change representing 4.83% of the company's 9.94M share float. The stock is a short squeeze candidate, with a short float at 14.65% (equivalent to 16.29 days of average volume). The stock has gained 23.36% over the last year.
2. Ryland Group Inc. (NYSE:RYL): Operates as a home building and mortgage-finance company in the United States. Market cap of $798.49M. Earnings to be released on 01/26. Shares shorted has decreased from 7.24M to 6.29M month-over-month, a change representing 2.30% of the company's 41.36M share float. Exhibiting strong upside momentum--currently trading 8.17% above its SMA20, 16.37% above its SMA50, and 21.11% above its SMA200. The stock has had a couple of great days, gaining 6.39% over the last week.
3. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap of $59.25B. Earnings to be released on 01/26. Shares shorted has decreased from 38.61M to 19.38M month-over-month, a change representing 2.20% of the company's 875.05M share float. Exhibiting strong upside momentum--currently trading 6.91% above its SMA20, 14.37% above its SMA50, and 19.66% above its SMA200. The stock has had a good month, gaining 17.71%.
*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.