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

5 Stocks Set to Soar on Strong Earnings

Stocks in this article: DAKT CTRN CHS CBRL HRL

Cracker Barrel Old Country Store

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

Get Adobe Flash player

One earnings short-squeeze play in restaurants complex is casual dining player Cracker Barrel Old Country Stores (CBRL), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Cracker Barrel Old Country Store to report revenue of $602.20 million on earnings of $1.05 per share.

This company crushed Wall Street estimates last quarter after they beat by 9 cents per share. Market players will be looking for another sizeable beat this quarter that could lead to big spike higher in the stock. Cracker Barrel's profits have jumped year-over-year by an average of 3.5% over the past five quarters. Revenue has also trended up for three consecutive quarters.

>>7 Smaller Stocks Beating the Big Guys

The current short interest as a percentage of the float for Cracker Barrel, one of the highest-yielding leisure stocks, is 7.2%. That means that out of the 19.38 million shares in the tradable float, 1.61 million are sold short by the bears. This is a pretty decent short interest on a stock with a very low float. Any bullish earnings news and guidance could easily spark a solid short-squeeze.

From a technical standpoint, this stock is currently trading above its 50-day and 200-day moving averages, which is bullish. On Monday, while the market sold off hard, shares of CBRL jumped 1% as the stock moved back above its 200-day moving average of $45.66 on heavy volume.

If you're bullish on Cracker Barrel, wait until after its report and buy the stock if it breaks out above some past overhead resistance at $46.66 on high-volume. Look for volume that's tracking in close to or above its three-month average action of 369,030 shares. If we see that high-volume breakout post-earnings, then I expect this stock to re-test its July high near $49.60 a share, or possibly go much higher.

I would look to short this stock after earnings only if it fails to breakout and falls back below its 200-day at $45.66 on heavy volume. I would add to any short positions if the stock then moves back below its 50-day at $42 on strong volume. Target a fall back towards $41 to $39, or possibly even lower if market players are dumping this stock post-earnings.

5 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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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