If you own shares of credit processing company Square (NYSE:SQ), Mexican restaurant Del Taco (NASDAQ:TACO), or boarding clothier Zumiez (NASDAQ:ZUMZ), you need to prepare yourself. Shares of these companies will likely make wild moves on Wall Street this week.
That's because all three stocks are reporting earnings, and all three are heavily shorted. When these two forces combine, volatility is almost always the result. If you don't believe me, check out the three stocks I highlighted last month, which moved an average of 15% following their quarterly releases.
Don't be silly, though. I'm not suggesting you should try to earn some quick cash based on these moves. Nor do I think you should automatically sell your shares for fear of such moves. Instead, I suggest long-term investors read through the slideshow below to see what's worth paying attention to in the week ahead...and what's just noise.
Brian Stoffel owns shares of Twitter. The Motley Fool owns shares of and recommends Twitter. 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.