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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Stocks Set to Soar on Bullish Earnings

Questcor Pharmaceuticals

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

Get Adobe Flash player

An earnings short-squeeze candidate in the biotechnology and drugs complex is Questcor Pharmaceuticals (QCOR), which is set to report results on Tuesday after the market close. This is an equipment rental company. Wall Street analysts, on average, expect Questcor Pharmaceuticals to report revenue of $89.22 million on earnings of 52 cents per share.

If you're looking for a heavily-shorted stock that's trading within range of a major breakout post-earnings, then make sure to check out shares of Questcor Pharmaceuticals. Heading into its earnings report this week, shares of Questcor Pharmaceuticals are trading just a few points off its 52-week high of $45.95 a share.

The current short interest as a percentage of the float for Questcor Pharmaceuticals is extremely high at 24.5%. That means that out of the 59.75 million shares in the tradable float, 15.41 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.6%, or by about 513,900 shares. If the bears are caught leaning too hard into this quarter, then a massive short-squeeze could easily develop post-earnings.

>>5 Stocks to Trade for Breakout Gains

From a technical perspective, QCOR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past three months, with shares surging from a low of $32.92 to a recent high of $42.44 a share. During that uptrend, shares of QCOR have mostly made higher lows and higher highs, which is bullish technical price action. That move has now pushed QCOR within range of triggering a major breakout trade post-earnings.

If you're bullish on QCOR, I would wait until after it reports earnings and look for long-biased trades if this stock can manage to break out above $42.44 on high-volume. Look for volume on that move that registers near or well above its three-month average action of 2,050,770 shares. If we get that action, I would then add to any long positions if QCOR can manage to take out its 52-week high of $45.95 with high volume. Target a run towards $50 a share or possibly higher post-earnings if the bulls spark a massive short-squeeze.

I would simply avoid QCOR or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then moves back below some near-term support at $39 a share with high-volume. If we get that move, then target a drop below its 50-day moving average of $38.07 a share, and possibly down towards its 200-day moving average of $35.49 a share.

3 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
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!
SYM TRADE IT LAST %CHG
QCOR $93.60 1.65%
BWLD $191.12 0.00%
IRBT $32.85 0.00%
NFLX $474.91 0.00%
AAPL $128.46 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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