Greetings, Fools. I hate to break it to you, but if you own shares of Netflix (NASDAQ:NFLX), Cree (NASDAQ:CREE), or PetMed Express (NASDAQ:PETS), you could be in for a wild week. That's because all three of these companies are heavily shorted, and all three are scheduled to report their earnings in the coming week.
When these two variables collide, volatility is almost always the result. If you don't believe me, check out the three stocks I singled out two weeks ago, which moved an average of 13% following their respective earnings reports. I expect much the same for these three in the week to come.
But I don't think you should try and profit from this. Instead, I think current shareholders should prepare for the volatility and figure out what really matters over the long-term, as opposed to what will just be short-term noise. Check out the slideshow below to see what I mean.
Brian Stoffel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Netflix. 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.