This Day On The Street
Continue to site
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

Krispy Kreme Doughnuts

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

Get Adobe Flash player

An earnings short-squeeze trade idea in the retail grocery sector is Krispy Kreme Doughnuts (KKD - Get Report), which is set to report results on Tuesday after the market close. This company is a retailer and wholesaler of doughnuts and packaged sweets. Wall Street analysts, on average, expect Krispy Kreme to report revenue of $101.29 million on earnings of 6 cents per share.

Krispy Kreme Doughnuts' revenue has trended higher in each of the last four quarters. Revenue jumped 11.4% in the second quarter from the year earlier, rising 13.6% in the first quarter from last year and 5.7% in the fourth quarter vs. the year-ago period.

The current short interest as a percentage of the float for Krispy Kreme Doughnuts stands at 5.8%. That means that out of the 50.91 million shares in the tradable float, 2.97 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 17.9%, or by about 450,000 shares.

>>5 Stocks Insiders Love Right Now

From a technical perspective, KKD is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently found some buying interest right around its 200-day moving average of $7.77. Since buyers stepped in at that level, the stock has risen to its current price of around $8.30. That move has pushed KKD within range of triggering a big breakout post-earnings.

If you're bullish on KKD, I would look for long-biased trades after its earnings report if the stock manages to break out above some near-term overhead resistance at $8.55 to $8.77 a share with high volume. Look for upside volume that's near or well above its three-month average action of 498,652 shares. If we get that action, then look for KKD to make a run at $9.50 to $10 a share or possibly much higher if the bulls spark a short covering rally post-earnings.

I would simply avoid KKD or look for short-biased trades if after earnings this stock fails to break out over $8.55 to $8.77 a share, and then drops back below its 200-day moving average of $7.77 with volume. If we get that action, I would look for a drop back toward $7 to $6.80 a share or possibly lower if the bears slam this stock down post-earnings.

4 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ATU $24.44 0.00%
JBL $25.48 0.00%
KKD $14.27 0.00%
MLHR $32.14 0.00%
TIF $79.73 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs