This Day On The Street
Continue to site right-arrow
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 Earnings Stocks Poised to Pop

Stocks in this article: SIRI STMP NUAN DNKN AMKR

Dunkin' Brands Group

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

Get Adobe Flash player

An earnings short-squeeze play in the consumer cyclical complex is Dunkin' Brands Group (DNKN), which is set to release numbers on Thursday before the market open. This is a franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as hard serve ice cream. Wall Street analysts, on average, expect Dunkin' Brands Group to report revenue of $160.02 million on earnings of 28 cent per share.

If you're looking for a stock that's within range of breaking out above its IPO highs, then take a strong look at shares of Dunkin' Brands Group this week ahead of their earnings report. This stock is trending very strong heading into the quarter with shares just a few points off its 52-week high of $31.94.

The current short interest as a percentage of the float for Dunkin' Brands Group is rather high at 10.4%. That means that out of the 51.34 million shares in the tradable float, 5.36 million are sold short by the bears. The bears have also been increasing their short positions from the last reporting period by 17%, or by about 777,500 shares. If the bears get caught leaning too hard into this quarter, then we could easily see a large short-squeeze develop for DNKN.

>>8 Stocks Hitting New 52-Week Highs

From a technical perspective, DNKN is currently trading above its 50-day moving average, which is bullish. This stock found some buying love back in January at around $25.50 a share, and since then it has trended higher towards its current price of $28.80 a share. The recent strength in DNKN now puts the stock within range of a major breakout if the company can deliver strong earnings and forward guidance.

If you're bullish on DNKN, I would look to get long the stock after it reports earnings if it can manage to break out above $30 to $32 a share with strong volume. Look for volume that registers near or above its three-month average volume of 1.05 million shares. If we get that action, I would look for a sharp short-squeeze since DNKN will enter all-time high territory.

I would simply avoid any long trades or look for shorting opportunities in DNKN if the stock fails to break out after they report earnings. Target a drop back towards the 50-day moving average of $25.83 a share, if we see heavy volume selling following the quarter.

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!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • 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