This Day On The Street
Continue to site
ADVERTISEMENT
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

5 Earnings Stocks That Could Explode

Globe Specialty Metals

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

Get Adobe Flash player

Another stock with the potential to see an earnings short squeeze is Globe Specialty Metals (GSM - Get Report), which is set to release results on Tuesday after the market close. This company, together with its subsidiaries, produces silicon metal and silicon-based alloys. Wall Street analysts, on average, expect Globe Specialty Metals to report revenues of $166.71 million on earnings of 31 cents per share.

During the previous quarter, this company reported earnings of 31 cents per share, which easily beat Wall Street estimates of 27 cents per share.

This is another name that's been beaten down big by the bears ahead of the quarter, with shares of Globe Specialty falling from $25.67 a share in mid-July to its current price of just over $17 a share. This big beatdown could set the stock up for a sharp rally if the bulls hear what they're looking for when the company reports.

The current short interest as a percentage of the float for Globe Specialty Metals sits at around 5.9%. That means that out of the 61.85 million shares in the tradable float, 3.74 million are sold short by the bears.

From a technical standpoint, this stock is trading below both its 50-day and 200-day moving average, which is bearish. This stock has recently formed a temporary double bottom at around $16.50 a share. I say temporary because we will have to see if this support zone holds up after they report earnings.

I would only be a buyer of this stock after they report if it breaks above $18.50 a share on strong volume. Look for volume that's close to or well above its three-month average action of 966,000 shares. I would add to any long positions if you see this stock trade above $20.62 and then $21.74 a share (200-day moving average) on solid volume. Target $22.50 to $24 a share of the bulls take full control of this stock.

I would only short this name after they report if the stock drops below that near-term support at around $16.50 a share on heavy volume. I would add to any short positions if it then drops below $14 a share and look for a near-term target of $13 to $12 a share.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PSS $21.72 0.00%
GES $17.54 0.00%
LZB $26.53 0.00%
MPEL $19.34 0.00%
PSUN $1.55 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs