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 on Bullish Earnings

Stocks in this article: NFLX QCOR LNET BWLD IRBT

Buffalo Wild Wings

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

Get Adobe Flash player

An earnings short-squeeze candidate in the restaurants complex is Buffalo Wild Wings (BWLD), which is set to release numbers on Tuesday after the market close. This is an owner, operator and franchisor of restaurants featuring a variety of menu items, including its Buffalo, New York-style chicken wings spun in any of its 14 signature sauces or four signature seasonings. Wall Street analysts, on average, expect Buffalo Wild Wings to report revenue of $250.92 million on earnings of 95 cents per share.

This company is aiming to top Wall Street estimates for the third quarter in a row. Last quarter, it beat Wall Street estimates with a profit of 73 cents per share against a mean estimate of 67 cents per share. Buffalo Wild Wings has registered double-digit revenue growth during the past four quarters. The company has averaged year-over-year revenue growth of 27.8% over the last four quarters. The company is looking to extend its trend of income increases for the fourth quarter in a row this earnings period.

The current short interest as a percentage of the float for Buffalo Wild Wings is rather high at 11.4%. That means that out of the 18.15 million shares in the tradable float, 2.07 million are sold short by the bears. This is a low float high short interest situation, so any positive earnings and bullish guidance from BWLD could easily spark a notable short-squeeze post-earnings.

From a technical perspective, BWLD is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock gapped up big back in February from around $70 to over $80 a share on monster volume. Since gapping up big, this stock has trended above the gap and has found buying interest whenever it's dropped into the low $80s.

If you're a bull on BWLD, then I would consider long-biased trades after they report if this stock can manage to trigger a near-term breakout above $86.19 to $87.12 (its 50-day) a share with high-volume. Look for volume on a move above those levels that's near or well above its three-month average action of 710,495 shares. If we get that action, then look for BWLD to make a run at its recent high of $94.81 a share or possibly higher post-earnings.

I would simply avoid BWLD or look for short-biased trades if the stock fails to trigger that breakout, and then drops back below some near-term support at $81.97 a share with heavy volume. If we get that action, then look for BWLD to potentially fill some of that massive gap-up from back in February.

Buffalo Wild Wings shows up on a list of 10 Small-Cap Stocks Poised to Rise, History Shows.

5 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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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