This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Stocks Set to Soar off Bullish Earnings

Stocks in this article: PANLROVISGIMCZEZPW

Rovi

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

Get Adobe Flash player

Another potential earnings short-squeeze play is Rovi (ROVI), which is set to report results on Tuesday after the market close. Rovi focuses on powering the discovery and enjoyment of digital entertainment providing companies a broad set of integrated solutions. Wall Street analysts, on average, expect Rovi to report revenue of $197.94 million on earnings of 61 cents per share.

This company missed estimates last quarter after beating estimates in the previous quarter. In the second quarter, Rovi reported a profit of 41 cents per share versus estimates of 49 cents. Two quarters ago, they beat analysts' expectations by 9 cents with a net income of 50 cents. Revenue has trended higher for the past three quarters. Their loss in the last quarter came after three straight quarters of a profit.

The current short interest as a percentage of the float for Rovi stands at 8.3%. That means that out of the 109.60 million shares in the tradable float, 9.19 million are sold short by the bears. It's worth mentioning that the bears have been increasing their bets from the last reporting period by 6.3%, or by about 541,300 shares.

>>5 Beaten-Down Tech Stocks Poised to Rebound

From a technical standpoint, this stock is currently below its 200-day moving average and right at its 50-day moving average, which is neutral trendwise. This stock plunged from its July high of $59.31 to a recent low of $38.79 a share. Since hitting that low, the stock has rebounded to its current level of just over $46.

If you're bullish on this name, I would wait until after they report and buy the stock once it trades above $48.78 and then $52.45 (its 200-day moving average) on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 1.34 million shares. If those levels are taken out, I would target a run back toward $58 to $59 a share.

I would get short this stock after it reports earnings only if it fails to get back above its 50-day moving average of $46.51 a share. If this stock fails to get back above the 50-day post-earnings, then I would short off any weakness and target a drop back toward that 52-week low of $38.79.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

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