This Day On The Street
Continue to site
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

5 Earnings Stocks Poised to Pop

Leap Wireless

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

Get Adobe Flash player

An earnings short-squeeze play in the communications services complex is Leap Wireless (LEAP), which is set to release numbers on Thursday after the market close. This company is a wireless communications carrier that offers digital wireless services in the U.S. under the Cricket brand. Wall Street analysts, on average, expect Leap Wireless to report revenue of $807.96 million on a loss of $1.11 per share.

This company missed Wall Street estimates for the last four quarters in a row. During the last quarter, Leap Wireless missed estimates by 10 cents, reporting a loss of 90 cents per share versus a mean estimate of a net loss of 80 cents per share. This company has registered double-digit year-over-year percentage revenue growth for the past four quarters. The average growth during that timeframe was 25.2%.

The current short interest as a percentage of the float for Leap Wireless is rather high at 12.8%. That means that out of the 48.80 million shares in the tradable float, 9.93 million are sold short by the bears. This is another low float stock with a decent short interest. Any good news that the bulls love could easily spark a big short-squeeze.

From a technical perspective, LEAP is currently trading above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has uptrending strong during the last couple of months, rising from its low in October of $5.50 to its current price of just under $9.50 a share. That strong uptrend now sets up LEAP to trigger a big breakout post-earnings if the bulls get the news they're looking for.

If you're bullish on LEAP, I would look for long-biased trades after they report if the stock can manage to break out above $9.69 to $10.68 with high-volume. Look for volume that's tracking in close to or above its three-month average volume of 1,799,730 shares. If we get that action, I expect LEAP to spike 15% or more since there's little overhead resistance on the stock until $13 to $15 a share.

I would simply avoid LEAP or look for short-biased trades if after earnings this stock fails to break out and then takes out its 50-day moving average of $8.98 with volume. Target a drop back toward $8 to $7 a share if the bears hammer this lower post-earnings.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
LEAP $0.00 0.00%
ARUN $24.67 0.08%
BMRN $136.73 -0.04%
KEG $1.60 -11.11%
WIFI $8.27 0.12%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs