Happy New Year, Fools!
As we prepare to begin 2016 as investors, those who hold shares of Sonic (NASDAQ:SONC), KB Home (NYSE:KBH), or Greenbrier (NYSE:GBX) should steel themselves for a wild week on Wall Street. That's because all three of these companies have a relatively high number of shares being shorted, and all three are reporting earnings.
When these two factors combine, volatility is almost always the result. If you don't believe me, check out the last time I called out such companies: They moved 8% on average following their respective releases.
But I don't think you should try and profit from these short-term moves. Besides being decidedly un-Foolish, there's no way to tell if shares of these companies will be going up or down. Instead, I think current shareholders should check out the slideshow below to find out what's just noise, and what's really worth paying attention to in the week ahead.
Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends The Greenbrier Companies. 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.