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

Corinthian Colleges

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

Get Adobe Flash player

An earnings short-squeeze play in the education complex is Corinthian Colleges (COCO), which is set to release numbers on Wednesday before the market close. This company is a post-secondary education company in operating the U.S. and Canada. Wall Street analysts, on average, expect Corinthian Colleges to report revenue of $415.27 million on earnings of 1 cent per share.

This company failed to beat Wall Street estimates last quarter after topping estimates in the prior quarter. In the first quarter, Corinthian report a net loss of 4 cents per share vs. Wall Street estimates of 2 cents. Two quarters prior, it beat estimates by 2 cents after reporting a profit of 24 cents. Revenue has trended lower for the past three quarters. The company's loss in the last quarter followed profits in the previous two quarters.

The current short interest as a percentage of the float for Corinthian Colleges is extremely high at 32.4%. That means that out of the 76.93 million shares in the tradable float, 24.95 million are sold short by the bears. The bears have also been increasing their short positions from the last reporting period by 9.1%, or by about 2.08 million shares.

From a technical standpoint, COCO is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock formed a near-term bottom at around $2.06 to $2.10 a share, and since then it has trended higher towards its current price of just over $3.10. This stock is now within range of trigging a big breakout as we move closer to their earnings report.

If you're bullish on COCO, I would buy some shares after it reports earnings if the stock can manage to break out above $3.20 a share with strong volume. Look for volume that registers near or above its three-month average action of 2.4 million shares. If $3.20 gets taken out before their earnings report, then I would buy the breakout above the daily from Wednesday's trading session.

A high-volume move on COCO above $3.20 a share should be considered very bullish since the stock has little overhead resistance until $4.90 a share after that price point. I would avoid COCO for an earnings short-squeeze trade if COCO fails to break out post-earnings and if the stock drops below some near-term support at $2.80 with volume.

5 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 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • 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