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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks Set to Soar off Bullish Earnings

Stocks in this article: RFMDAMDYHOOSLABMOLX

Silicon Laboratories

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

Get Adobe Flash player

One earnings short-squeeze play in the semiconductor complex is Silicon Laboratories (SLAB), which is set to release numbers on Wednesday before the market close. This company designs and develops analog-intensive, mixed-signal integrated circuits for a range of applications. Wall Street analysts, on average, expect Silicon Laboratories to report revenue of $119.79 million on earnings of 43 cents per share.

This company is going for its fifth consecutive quarter of beating Wall Street estimates when it reports this week. Revenue has trended lower for the past three quarters, and their gross margin shrank by 4.3% in the last quarter. Revenue dropped 0.9% while cost of sales jumped 11.4% to $46.2 million from a year ago.

The current short interest as a percentage of the float for Silicon Laboratories is very high at 16.3%. That means that out of the 36.41 million shares in the tradable float, 6.21 million are sold short by the bears. This stock has a rather low float and very high short interest. If Silicon Laboratories can report a solid quarter and raise forward guidance, then this stock could easily see a monster short-squeeze.

From a technical standpoint, SLAB is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trading within a range since last November, between $40.22 and $45 a share. The stock is now starting to breakout above that range high of $45.10 and some past overhead resistance at $46.28 today with shares currently trading at around $46.50.

If you're bullish on SLAB, I would look to be a buyer after its report if the stock can manage to hold above those breakout levels of $45.10 to $46.28 a share on strong volume. Look for volume to flow into the stock that's near or above its three-month average action of 399,735 shares. If we get that move, then I would target a run back towards the next significant overheard resistance at $50.27 a share, or possibly $53.17 a share.

I would avoid any long trades in SLAB or get short this stock if it drops back below some near-term support at $45 a share on heavy volume following their report. Any high-volume move back below that level should set this stock up to re-test its 50-day moving average of $43.04 a share, or possibly its 200-day moving average of $39.52 if the bears whack this lower 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 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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