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 off Bullish Earnings

Hansen Medical

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

Get Adobe Flash player

My first earnings short-squeeze trade idea is medical equipment and supplies player Hansen Medical (HNSN), which is set to release its numbers on Wednesday after the market close. Wall Street analysts, on average, expect Hansen Medical to report revenue of $6.09 million on a loss of 17 cents share.

The current short interest as a percentage of the float for Hansen Medical is extremely high at 21.9%. That means that out of the 34.57 million shares in the tradable float, 8.66 million shares are sold short by the bears. This stock has a monster short interest and a very low float. A strong earnings report and bullish guidance should easily set this stock off on a large short squeeze.

From a technical perspective, HNSN is currently trading above both its 50-day and 200-day moving averages, which is bullish. That said, the stock did move below its 200-day moving average briefly today but has since rebounded back above it. Shares of HNSN have making lower highs and lower lows for the past few weeks, which is bearish price action.

If you're bullish on HNSN, I would wait until after its report and look for long-biased trades if this stock breaks out above $3.83 to $4.03 a share with high volume. Look for volume that's near or well above its three-month average action of 544,015 shares. If we get that action, then look for HNSN to make a run at its next significant overhead resistance levels of $4.46 to $5 a share.

I would simply avoid this stock from the long side if HNSN fails to breakout post-earnings, and then moves back below its 200-day at $3.15 and its 50-day at $2.93 with heavy volume.

I also featured Hansen recently in "8 Stocks Under $10 Moving Higher."

2 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 16,493.37 -69.93 -0.42%
S&P 500 1,925.15 -5.52 -0.29%
NASDAQ 4,352.6390 -17.1340 -0.39%

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