This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Set to Soar off Bullish Earnings

Stocks in this article: JBL TIF KKD ATU MLHR

Herman Miller

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

Get Adobe Flash player

One more earnings short-squeeze candidate is furniture and fixtures player Herman Miller (MLHR), which is set to release numbers on Wednesday after the market close. This company engages in the research, design, manufacture, and distribution of interior furniture systems, products, and related services worldwide. Wall Street analysts, on average, expect Herman Miller to report revenue of $409.63 million on earnings of 27 cents per share.

This company reported in-line earnings last quarter, so traders will be looking for a better showing during this quarter. Herman Miller's profit has trended higher year-over-year by an average of more than threefold over the past five quarters. Revenue has risen for three straight quarters.

The current short interest as a percentage of the float for Herman Miller sits at 4.6%. That means that out of the 57.34 million shares in the tradable float, 2.60 million are sold short by the bears. This isn't a huge short interest, but it's more than enough to spike the stock off any bullish news.

From a technical perspective, MLHR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock formed a double bottom in January at $17.99 a share. Since putting in that bottoming pattern, the stock has soared towards its current price of just under $22 a share. This move now puts the stock within range of triggering a near-term breakout trade post-earnings.

If you're bullish on MLHR, I would look for long-biased trades after its report if the stock can manage to break out above $23.04 to $23.50 a share high-volume. Look for volume that registers close to or above its three-month average action of 389,285 shares. If we get that action, I would target a run in MLHR back towards its next significant overhead resistance level at $27 a share.

I would simply avoid MLHR or look for short-biased trades after its report if the stock fails to break out and then drops below some near-term support at $20.28 a share with high volume. Target a drop back towards $19 to $18 a share or possibly even lower if the bears sell this stock off post-earnings.

To see more potential earnings short squeeze plays, including Fred's (FRED), NuPathe (PATH) and AAR (AIR), check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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