This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Earnings Stocks That Could Surge

Salesforce.com

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One more earnings short-squeeze play is Salesforce.com (CRM), which is set to release numbers on Thursday after the market close. This company is a provider of enterprise cloud computing applications. Wall Street analysts, on average, expect Salesforce.com to report revenue of $528.78 million on earnings of 30 cents per share.

This company beat Wall Street estimates last quarter after reporting in-line results the quarter prior. Salesforce.com has produced double-digit year-over-year revenue growth for the past four quarters in a row, but net income has dropped in the last two quarters.

Jefferies recently made some positive comments on Saleforce.com ahead of the quarter and reiterated its buy rating and $165 price target. Jefferies thinks the company will beat billing expectations given their market checks and higher transaction volumes.

The stock has been beaten down hard going into this quarter, with shares falling from a recent high of $160 a share to its current price of just over $126. The current short interest as a percentage of the float for Salesforce.com is reasonably high 8.1%. That means that out of the 122.35 million shares in the tradable float, 9.86 million are sold short by the bears.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. Shares of CRM recently ran into some big overhead resistance at its 200-day moving average of $136.87 a share. The stock also failed before that at its 50-day moving average. That said, the stock has dropped sharply of late and it could rebound big if they report a solid quarter and guide higher.

The way I would trade CRM would be to buy this stock after they report if you see hold above its recent low of $123.23 a share. If that level can hold, then you can jump into this name and add to the position if you see CRM trade above its next significant resistance level of $128.35 a share on big volume. Look for volume that's close to or greater than 2.4 million shares.

I would short this stock only if it takes out $123.23 a share on big volume after it's reported their results. I would add to any short trade if it then losses $117.66 a share.

Salesforce was also highlighted recently in "5 Stocks That Could Move Big on Earnings."

To see more potential earnings short squeeze candidates, including Sears Holdings (SHLD), Silicon Graphics (SGI) and GameStop (GME), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs