My final earnings short-squeeze play today is software and programming player Tangoe (TNGO), 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.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV