Quarterly earnings reports can have big effects on a biotech stock price, especially if a company has just launched a newly approved drug.
For ideas on how to find which stocks to follow, we ran a screen on next week's reporting companies from the biotech industry. We screened these stocks for those with significant decreases in shares shorted month-over-month, indicating that short sellers are less bearish than before.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 earnings surprises? 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. Acorda Therapeutics, Inc. (ACOR): Involves in the identification, development, and commercialization of therapies for multiple sclerosis (MS), spinal cord injury, and other nervous system disorders. Earnings to be released on 02/16. Shares shorted have decreased from 4.04M to 3.19M over the last month, a decrease which represents about 2.5% of the company's float of 34.00M shares.
2. Regeneron Pharmaceuticals, Inc. (REGN): Develops, and commercializes pharmaceutical products for the treatment of serious medical conditions in the United States. Earnings to be released on 02/16. Shares shorted have decreased from 8.85M to 7.46M over the last month, a decrease which represents about 1.96% of the company's float of 70.83M shares.
3. NPS Pharmaceuticals, Inc. (NPSP): Engages in the development specialty therapeutics for gastrointestinal and endocrine disorders. Earnings to be released on 02/13. Shares shorted have decreased from 5.94M to 4.48M over the last month, a decrease which represents about 1.7% of the company's float of 85.72M shares.
*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.