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 Stocks Set to Soar off Bullish Earnings

Helix Energy Solutions

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

Get Adobe Flash player

One earnings short-squeeze play in the oil well services and equipment complex is Helix Energy Solutions (HLX - Get Report), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Helix Energy Solutions Group to report revenues of $330.87 million on earnings of 35 cent per share.

This company met Wall Street estimates last quarter after beating them the prior two. During the third quarter, Helix Energy Solutions reported a profit of 43 cents per share vs. a mean estimate of net income of 43 cents per share. In the second quarter, they beat estimates by 21 cents. A year-over-year revenue decline in the third quarter followed a streak of three straight quarters of revenue increases.

The current short interest as a percentage of the float for Helix Energy Solutions Group sits at 7%. That means that out of the 98.05 million shares in the tradable float, 6.83 million are sold short by the bears. The bears have also been increasing their short positions from the last reporting period by 3.4%, or by about 226,400 shares.

>>Energy Stocks Bought and Sold by Hedge Funds

From a technical perspective, HLX is currently trading above both its 50-day and 200-day moving average, which is bullish. This stock recently bounced off its 50-day moving average near $16, and then soared to its current price of just over $19.40 a share. This stock is now within range of triggering a major breakout post-earnings if the company can deliver strong results.

If you're bullish on HLX, I would look for long-biased trades after it reports earnings if it can manage to break out above some near-term overhead resistance at $19.69 a share with strong volume. Look for volume that registers near or above its three-month average volume of about a million shares. If we get that action, look for HLX to re-test its 52-week high of $21.65 a share, or possibly trend much higher.

I would simply avoid HLX or look for short biased trades if the stock fails to breakout after they report earnings, and then drops below some near-term support at $18 with volume. Target a drop back towards the 50-day moving average of $16.80 a share, or possibly much lower if the bears hammer this stock down 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
ESRX $90.33 1.80%
HLX $16.62 1.84%
HNSN $1.01 -2.88%
SKUL $8.10 -0.74%
AAPL $131.70 1.30%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs