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
TheStreet Open House

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), 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

Select the service that is right for you!

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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from

  • 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