5 Stocks That Will Probably Make Huge Moves This Week

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 (NASDAQ: FCEL  )

12%

Tuesday

$44.6

($0.03)

Navistar (NYSE: NAV  )

13%

Tuesday

$2,900

($1.67)

KB Homes (NYSE: KBH  )

28%

Tuesday

$665

$0.46

Biodel (NASDAQ: BIOD  )

10%

Thursday

$12.5

($0.32)

Bio-Reference Lab (NASDAQ: BRLI  )

39%

Friday

$191

$0.43

Sources: E*Trade, finviz.com

FuelCell
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
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 Homes
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
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 Labs
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.

Our top stock for 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!


Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 16, 2013, at 5:28 AM, mrconnors0531 wrote:

    Posco out of S. Korea will buy out FCEL by the end of the year. Giant opportunities for the steel maker especially in Japan. Target price $6.

Add your comment.

DocumentId: 2765436, ~/Articles/ArticleHandler.aspx, 4/20/2014 7:47:22 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement