Investing is a game won by those who take the long view. But part of being able to do that is steeling yourself to deal with short-term volatility. If you own shares of GameStop (NYSE:GME), Zoes Kitchen (NYSE:ZOES), or Abercrombie & Fitch (NYSE:ANF), such preparation is in order.
That's because shares of all three of these companies are heavily shorted, and they will all be reporting earnings in the week ahead. This is a perfect storm for volatility. If you don't believe me, check out the three stocks I singled out earlier in August, which moved an average of 21% following their respective earnings releases.
But I don't think you should try to earn a quick buck from these moves. First of all, that wouldn't be very (capital-F) Foolish. And secondly, there's no telling if these moves will be up or down. Instead, current shareholders should check out the following slideshow to see what's truly worth watching in the week ahead.
Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends Zoe's Kitchen. The Motley Fool owns shares of Zoe's Kitchen. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.