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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Set to Soar off Bullish Earnings

Zoom Technologies

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

Get Adobe Flash player

Another possible earnings short-squeeze trade is leading China-based maker of mobile phones and related products Zoom Technologies (ZOOM), which is set to report results on Tuesday after the market close.. Wall Street analysts, on average, expect Zoom Technologies to report revenue of $99.72 million on earnings of 32 cents per share.

If you're looking for an under-$5 stock that could pop off a solid earnings report and guidance, then make sure to keep Zoom Technologies on your earnings trading radar.

The current short interest as a percentage of the float for Zoom Technologies stands at 6.7%. That means that out of the 10.06 million shares in the tradable float, 552,833 shares are sold short by the bears. This stock has a very small float and a decent short interest. That said, we are going to need to see very solid results to kick off a short squeeze since this is a very speculative penny stock.

>>3 Stocks Under $5 Trading at Huge Discounts

From a technical standpoint, this stock is currently below its 50-day and 200-day moving averages, which is bearish. This stock recently spiked huge off its October low of $1.10 to a recent high of $2.50 in a very short timeframe. Since that big spike, the stock has slide back below its 50-day moving average and the selling volume has been picking up. That said, the stock still is holding above some short-term support zones near $1.55 to $1.50.

If you're bullish on Zoom, I would wait until after it reports earnings and buy the stock if $1.50 holds and it starts to move back above its 50-day moving average of $1.87 with volume. Look for volume that's tracking in close to or above its three-month average action of 74,500 shares. If this stock can sustain a move above $1.87 with volume, then I would add to any long position once $2.14 is taken out. Target a run back toward $2.50 if the bulls step in and buy this name post-earnings.

I would avoid this stock as an earnings short-squeeze play altogether if it fails to get back above the 50-day after earnings, or if it fails to hold that previous support at $1.50.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

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