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 Bullish Earnings

Aspen Technology

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

Get Adobe Flash player

Another potential earnings short-squeeze play is software player Aspen Technology (AZPN), which is set to report results on Tuesday after the market close. Wall Street analysts, on average, expect Aspen Technology to report revenues of $53.60 million on a loss of 5 cents per share.

If you're looking for a stock that's within range for a big breakout post-earnings, then make sure to check out shares of Aspen Technology. This stock is currently trading just a few percentage points off of its 52-week high of $18.73 a share as we approach its earnings report.

The current short interest as a percentage of the float for Aspen Technology stands at 4%. That means that out of the 82.18 million shares in the tradable float, 3.77 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.9%, or by about 139,000 shares.

From a technical standpoint, AZPN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom at around $15.81 to $15.97 a share, and since then it has trended higher back above its 50-day and toward its current price of around $18.15 a share.

If you're bullish on AZPN, I would wait until after it report its results and buy the stock once it breaks out above $18.70 to $18.73 high-volume. Look for volume that's tracking in close to or above its three-month average volume of 577,726 shares. If we get that move, I expect to see AZPN pop 10% or more since the stock has a decent short interest and it will be trading at new 52-week highs.

I would avoid any long trades or short AZPN after their earnings report if the stock fails to break out and it moves back below its 50-day moving average of $17.36 on high volume. I would target a drop back toward its 200-day at $16.39, or potentially much lower if the bears hammer this stock post-earnings.

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 17,104.00 -9.54 -0.06%
S&P 500 1,988.64 +5.11 0.26%
NASDAQ 4,478.64 +22.6240 0.51%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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