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3 Stocks That Could Make Huge Moves This Week

By Brian Stoffel - Feb 7, 2016 at 11:57AM

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Combine lots of short-sellers with earnings on the horizon, and this is what you get.

Image source: Pixabay.

Three very well-known companies are about to see their shares go on a wild ride. That's because all three are heavily shorted -- or have lots of investors betting against their success -- and all three are reporting earnings. When these two forces collide, volatility is almost always the result. If you don't believe me, check out the stocks I highlighted last month, which moved an average of 18% following their respective releases.

But don't be (small-f) fooled: I don't think you should try to turn a quick profit based on this information. There's no telling what direction these stocks will be heading -- unless you have insider information -- which, of course, is illegal to trade on.

Instead, I think shareholders of Tesla (TSLA 1.21%), Zillow (Z -1.95%) (ZG -1.54%), and Pandora (P) need to check out the slideshow below. It will give you an idea as to why your stocks might move the in direction they do this week. But more importantly, it'll point out the long-term metrics that are actually worth paying attention to.

Image source: Zillow.

Brian Stoffel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Pandora Media, Tesla Motors, Zillow Group (A and C shares). 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.

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Stocks Mentioned

Pandora Media, Inc. Stock Quote
Pandora Media, Inc.
Tesla, Inc. Stock Quote
Tesla, Inc.
$939.22 (1.21%) $11.26
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$38.45 (-1.54%) $0.60
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$38.30 (-1.95%) $0.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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