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My final earnings short-squeeze play today is software and programming player
Tangoe(TNGO - Get Report), which is set to release numbers on Tuesday after the market close. This is a global provider of on-demand communications lifecycle management software and related services. Wall Street analysts, on average, expect Tangoe to report revenue of $33 million on earnings of 8 cents per share.
Sales growth for Tangoe has registered between 56% and 59% during the past three quarter. Wall Street analysts are looking for earnings growth of 62% this year and 33% next year. As we approach its earrings report, shares of Tangoe are trading just a few points off its 52-week high of $21.74 a share.
The current short interest as a percentage of the float for Tangoe stands at 6%. That means that out of the 29.98 million shares in the tradable float, 1.76 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short covering rally if Tangoe can deliver what the bulls are looking for.
From a technical perspective, TNGO is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares ripping higher from a low of $12 to a recent high of $21.74 a share. During that move, shares of Tangoe have consistently made higher lows and higher highs, which is bullish technical price action. Now this stock is trading within range of a near-term breakout trade.
If you're bullish on TNGO, I would wait until after they report and look for long-biased trades if this stock breaks out above some near-term overhead resistance at $21.60 to $21.74 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 595,122 shares. If we get that action, look for TNGO to pop toward $25 a share or higher if the bulls gain full control of this stock post-earnings.
I would simply avoid TNGO or look for short-biased trades if it fails to trigger that breakout, and then drops below its 50-day moving average of $19.08 a share on heavy volume. If we get that action, look for TNGO to potentially drop towards its next significant support levels at $16.94 to $15 a share if the bears hammer this stock down post-earnings.
To see more potential earnings short squeeze plays, check out the
Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.