This Day On The Street
Continue to site
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 Stocks Set to Soar on Bullish Earnings

Worthington Industries

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

Get Adobe Flash player

Another potential earnings short-squeeze trade is Worthington Industries (WOR - Get Report), which is set to report results on Wednesday after the market close. This is a diversified metals processing company, focused on steel value-added steel processing and manufactured metal products. Wall Street analysts, on average, expect Worthington to report revenue of $626.97 million on earnings of 39 cents per share.

This is another name that the bears have destroyed in front of the quarter, since shares are down sharply from the July highs at $23.54 a share to the current price of just under $15 a share. The last time Worthington report earnings, it beat Wall Street estimates of 56 cents per share, reporting 70 cents per share. If we get another beat with this report and the company ups guidance, then this stock could easily see a huge short squeeze.

The current short interest as a percentage of the float for Worthington is rather large at 10.8%. That means that out of the 55.9 million shares in the tradable float, 5.88 million are sold short by the bears. This is a reasonably low float and high short interest situation that can produce a sharp move higher if the bears scramble to cover some of their bearish bets.

From a technical standpoint, this stock is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock formed a double top back in July at around $23.50 a share and since then has dropped to a recent low of $12.84 a share. Since hitting that low, the stock has rallied back up to just over $15 a share.

>>Does Technical Analysis Really Work?

If you're bullish on this name, I would wait until after they report and buy the stock once it breaks out above $15.50 a share on big volume. Look for volume that's tracking in close to or above its three-month average action of 1 million shares. I would add to any long positions once the stock then takes out its 50-day moving average of $16.98 a share and target a run back towards the 200-day moving average at $19.04 a share.

I would get short this name only if the stock drops below $12.84 after earnings on big volume. I would add to any short bets if the stock then takes out some big support at $11.63 a share on heavy volume. I would target a drop back towards $10 or possibly even lower if the bears take control of this name post-earnings.

Worthington is one of the 20 highest-yielding metals and mining stocks.
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AZZ $55.13 -0.52%
MU $10.01 -0.50%
XRTX $13.24 0.08%
WOR $36.72 1.50%
AAPL $92.80 -0.47%


Chart of I:DJI
DOW 17,651.43 -9.28 -0.05%
S&P 500 2,041.82 -8.81 -0.43%
NASDAQ 4,690.20 -26.8940 -0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs