Many investors appear to be quite bearish on Cablevision Systems Corporation (CVC), especially if you look at the percentage of the float that is sold short for this stock. Currently, 27% of the float is sold short, suggesting an extreme level of bearishness for CVC.
While investors might be piling up against this stock for any number of reasons, it is important to note that CVC has seen some weakness as of late, as the security hasn’t been able to get into positive territory over the past four weeks, losing 1% in the time frame.
Better Trading Ahead?
While the short interest and the recent performance are certainly troubling, there is reason to be optimistic on this stock. Recent earnings estimate activity has actually been quite positive as of late, even in the face of such widespread pessimism.
Thanks to these rising estimates, we actually have a Zacks Rank #1 (Strong Buy) on CVC, so we clearly don’t believe in the negativity surrounding this firm. After all, it is hard not to be at least a little optimistic on the short term when you consider that 6 estimates have moved higher in the past 60 days compared to none lower in the same time frame, while the consensus has also increased.
Given this, a short-covering rally is certainly in the cards for CVC stock, especially if investors embrace the positive earnings estimate revision picture, suggesting that CVC could definitely move higher in the weeks ahead.
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