My final earnings short-squeeze play is School Specialty (SCHS), which is set to release numbers on Thursday before the market open. This is an education company serving the pre-kindergarten through twelfth grade market with instructional solutions that address a range of educational needs, from basic school supplies to standards-based curriculum solutions. Wall Street analysts, on average, expect School Specialty to report revenue of $117.40 million on a loss of 91 cents per share.
If you’re looking for a beaten-down small-cap stock heading into its earnings report, then make sure to check out shares of School Specialty. This stock is down around 30% during the last six months, and shares are currently trading very close to its 52-week low of $2.15 a share.
The current short interest as a percentage of the float for School Specialty is extremely high at 23.5%. That means that out of the 14.33 million shares in the tradable float, 3.24 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 17.8%, or by about 577,000 shares. This is a low float and high short interest situation. Any bullish news for School Specialty post-earnings could easily lead to a big short-squeeze.