This has been a rough earnings season for many companies  — but not because their numbers are lousy.  It’s more about price performance after earnings.  This market has knocked most stocks lower and anything but a blowout report and outlook has typically been met with selling.

We’re going to try to buck that trend, though, with super-discount retailer Big Lots (NYSE:BIG).  The deep discounters have held up pretty well in this market, thanks to strong numbers.  Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and Dollar Tree (NASDAQ:DLTR) are three that stand out.  Up next is BIG, which reports Thursday before the open.   Analysts expect a four-cent decline in earnings per share from a year ago, so expectations are anything but ebullient.

The shares appear to have found a bid around the $30 level.  On Monday, the stock is bouncing off this support.  The next overhead obstacle is the 20-day moving average, which is more than 4% above the current share price.

Sentiment toward BIG is generally mixed, meaning that there’s plenty of pessimism available to unwind into buying.  Fewer than half the covering analysts rate the stock a buy, leaving ample room for upgrades.  And the short-interest ratio is coming off its highest level since last October.

The theme of concerned consumers flocking to the deep discounters is once again alive and well.  With competitors doing well with their earnings, the chart showing strong support, and plenty of skepticism surrounding the shares, look for BIG to continue its bounce to challenge overhead moving averages.  Buy the Sept 30 call for $2.50 or less.

Have a great trading week.