5 Earnings Stocks that You Should Love

The best short-sellers scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks to help enhance your portfolio returns.

First earnings short-squeeze trading opportunity is mattress and related products specially retailer Mattress Firm (MFRM - Get Report) , which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Mattress Firm to report revenue of $622.36 million on earnings of 56 cents per share. This  stock will set up to re-test or possibly take out its next major support levels at $36 to $34, or even $32.70 to $32 a share.

Another potential earnings short-squeeze play is health care information systems player HealthEquity (HQY - Get Report) , which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect HealthEquity to report revenue $34.89 million on earnings of 4 cents per share. I would simply avoid HealthEquity or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $21.48 to $21.42 a share and then below its 50-day moving average of $20.96

Another potential earnings short-squeeze candidate is multichannel video game retailer GameStop (GME - Get Report) , which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect GameStop to report revenue $3.56 billion on earnings of $2.25 per share. I would avoid GameStop or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 20-day moving average of $30.76 a share and then below more key support levels at $28.81 to its 50-day moving average of $28.24.

Another earnings short-squeeze prospect is G-III Apparel Group (GII) , which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect G-III Apparel Group to report revenue of $573.01 million on earnings of 44 cents per share. G-III Apparel Group or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 20-day moving average of $53.22

My final earnings short-squeeze trading opportunity is outdoor sporting goods retailer Sportsman's Warehouse (SPWH) , which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Sportsman's Warehouse to report revenue of $206.21 million on earnings of 25 cents per share.  SPWH will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $12.17 to $11.50, or even $11.11 to $10.90 a share.

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