Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
We Fools pride ourselves on being buy-to-hold investors who aren’t too concerned with short-term movements in the stock market. At the same time, however, we’ve all had those moments where we’ve acted all too human and got caught up in the excitement of an investing moment.
When you think about it, there’s nothing inherently wrong with that: It’s what makes being human … being human. But we also don’t want to make any rash decisions about our investments because we’re caught off guard by big swings in the market.
That’s why I’m offering up the following five stocks for your consideration. If you own these stocks, you should be aware that next week could be a little like a roller-coaster ride. That’s because each of these stocks are reporting earnings next week, and they are heavily shorted.
Last week’s stocks to look out for proved quite volatile, moving an average of 11%. If this week is anything like last, it’s worth being emotionally prepared.
|Company||% of Shares Short||When?||Expected Revenue (Millions)||Expected EPS|
|FuelCell Energy Inc. (NASDAQ:FCEL)||12%||Tuesday||$44.6||($0.03)|
|Navistar International Corp (NYSE:NAV)||13%||Tuesday||$2,900||($1.67)|
|KB Home (NYSE:KBH)||28%||Tuesday||$665||$0.46|
|Biodel Inc (NASDAQ:BIOD)||10%||Thursday||$12.5||($0.32)|
|Bio-Reference Laboratories Inc (NASDAQ:BRLI)||39%||Friday||$191||$0.43|
FuelCell Energy Inc. (NASDAQ:FCEL)
This company creates stationary fuel cell power plants that can crate electricity for people and organizations that don’t have immediate access to the power grid, or want to be independent from it. So far this year, shares of the company are up an astounding 88% — but that hasn’t stopped some detractors from betting against it. Revenue has been growing like gangbusters, but the company has yet to turn a profit — and this probably plays a role in why there’s a substantial short interest.
Navistar International Corp (NYSE:NAV)
Navistar, which manufactures long-haul trucks and their engines, has been on a downward trend for two years now. It all started when the company’s engines were rejected for not complying with EPA standards. This led Navistar to focus on outsourcing production until it can fix the problem. Shares have advanced more than 80% this year, on hopes that Navistar will finally return to profitability. But if there are any more unwelcome surprises on the horizon, the stock could lose all it has gained so far this year.
KB Home (NYSE:KBH)
This company is one of the country’s foremost homebuilders. Though the housing sector continues to pull itself up from the depths of the Great Recession, shares of the company have lost about 30% of their value since May. The primary concern, however, is that the company is trading for more than 70 times earnings, and some think — even though rosier times are ahead — that the company is too expensive.
Biodel Inc (NASDAQ:BIOD)
Biodel is a tiny pharmaceutical company looking to develop an injectable diabetes treatment — BIOD-123 — that would help lower the risks for hypoglycemia complications. Investors have endured quite a roller coaster in 2013, with shares rising 140% by August, only to fall 65% since then. The company’s first attempt at FDA approval was denied because of how its clinical trials were run; investors have since been disappointed that BIOD-123 performs too similarly to diabetes drugs already on the market.
Bio-Reference Laboratories Inc (NASDAQ:BRLI)
Bio-Reference provides testing services such as pap smears, biopsies, and blood and urine analysis for medical professionals in and around the New York City area. Investors have already experienced one jolt associated with the company’s earnings announcement: Preliminary results were released in late November, and earnings are expected to come in well below estimates. Shares dropped as much as 22% on the news. The main culprit is the Affordable Care Act, which is lowering Medicare reimbursement rates for laboratories across the country.
The article 5 Stocks That Will Probably Make Huge Moves This Week originally appeared on Fool.com.
Fool contributor Brian Stoffel and The Motley Fool have no position in any of the stocks mentioned.
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