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 Stocks Set to Soar off Strong Earnings

First Cash Financial Services

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

Get Adobe Flash player

Another potential earnings short-squeeze play is First Cash Financial Services (FCFS - Get Report), one of TheStreet Ratings' top-rated consumer finance stocks, which is set to report results on Wednesday before the market open. This company is an operator of retail-based pawn and consumer finance stores in the U.S. and Mexico. Wall Street analysts, on average, expect First Cash Financial Services to report revenue of $132.69 million on earnings of 55 cents per share.

This stock was beaten down hard after it hit its September high of $52.18, subsequently dropping to an October low of $34.52 a share. After hitting that low, the stock has rebounded sharply to trade at just around $43 a share. This recent sharp move in the stock now sets it up perfectly for a breakout trade post-earnings.

>>5 Stocks Poised for Breakouts

The current short interest as a percentage of the float for First Cash Financial Services is rather high at 9.9%. That means that out of the 28.02 million shares in the tradable float, 2.76 million are sold short by the bears. It's worth pointing out that the bears have been increasing their bets by 10.6%, or by about 265,000 shares. If those bears are caught leaning to heavy into the quarter, then we could easily see a sharp move higher.

From a technical standpoint, this stock is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. The stock recently ran into some stiff overhead resistance at around $45.31 to $45 a share, which also sits right around its 50-day moving average of $44.98 a share.

If you're bullish on this name, I would wait until after they report and buy the stock once it breaks out above $45 to $45.31 on big volume. Look for volume on the breakout that's tracking in close to or above its three-month average action of 459,600 shares. If that breakout triggers, then look for the stock to make a run at its 52-week high of $52.18 a share.

I would get short this stock after its report only if it fails to breakout and then drops below $41 a share with volume. I would add to any short position once the stock drops below its 200-day moving average of $39.28 with volume. Target a drop back below $38 a share if the bears gain full control of this name post-earnings.

>>Practice your stock trading strategies and win cash in our stock game.

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
BWLD $155.48 0.00%
EGHT $8.41 0.00%
FCFS $47.23 0.00%
ISRG $495.27 0.00%
AAPL $132.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs