3 Stocks That Could Make Huge Moves This Week

Papa Murphy’sPapa Murphy’s makes pizzas that are made on the spot, and are cooked at home. The company is expected to report earnings on Monday evening.

Currently, 28% of Papa Murphy’s shares are sold short.

Papa Murphy’s is a newly public company. Since its first day of trading last year, the stock is up over 70%, and trades for an expensive 40 times trailing earnings.

Photo: Papa Murphy’s

Here’s What You Should WatchOver the Short Term• Papa Murphy’s is expected to

report earnings of $0.09 per share for the previous quarter.

• Analysts expect the company to have collected $28.7 million in sales for the previous quarter.

• For the full fiscal year, analysts are expecting the company to earn $0.53 per share on sales of $119 million.

Over the Long Term• Comparable store sales are

crucial. Management expects overall growth to sit at 3.0% for the year—with the company logging 5.6% growth last quarter.

• Pay attention to the company’s cash on hand. It is spending lots to build new stores, and saw cash and equivalents shrink from $5 million to $1 million during the first quarter.

J.C. PenneyJ.C. Penney is primarily a clothing retailer in the United States. The company is expected to report earnings on Monday evening.

Currently, 36% of J.C. Penney’s shares are sold short.

Retailers have had a tough run ever since the Great Recession. As more and more purchases migrate online, stalwarts like J.C. Penney have struggled to keep customers coming in the doors.

Here’s What You Should WatchOver the Short Term• J.C. Penney is expected to

announce $2.9 billion in revenue for the previous quarter.

• The company is expected to have lost $0.48 per share last quarter.

• For the full fiscal year, expectations are set for $12.6 billion in revenue and a loss of $1.25 per share.

Over the Long Term• Management expects

comparable-store sales growth to come in between 4% and 5%.

• Pay close attention to management comments on (1) adoption of the company’s new mobile app, and (2) the performance of its higher-margin, private label brand.

WayfairWayfair is an e-commerce, home furnishings business. The company is expected to report earnings on Wednesday morning.

Currently, 58% of Wayfair’s shares are sold short.

Like Papa Murphy’s, Wayfair is a newly public company. Its stock is up over 80% this year, though it has yet to become profitable.

Photo: Wayfair

Here’s What You Should WatchOver the Short Term• Analysts are expecting

Wayfair to report revenue of $439 million for the previous quarter.

• They are also expecting the company to have lost $0.29 per share for the previous quarter.

• For all of 2015, expectations are set for $1.9 billion in sales with a loss of $1.00 per share.

Over the Long Term• The company is investing

heavily in its infrastructure and advertising, so don’t be alarmed if profitability remains an issue.

• As long as total net revenue and active customer counts continue to climb at rates above 40%, those should be sound investments.

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