This Day On The Street
Continue to site
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

5 Earnings Stocks Poised to Pop


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

Get Adobe Flash player

My first earnings short-squeeze trade idea today is high-end specialty retailer Tiffany (TIF - Get Report), which is set to release its numbers on Thursday before the market open. This company, through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Wall Street analysts, on average, expect Tiffany to report revenue of $816.85 million on earnings of 69 cents per share.

This company missed estimates last quarter after beating Wall Street estimates in the prior two quarters. During the fourth quarter of the last fiscal year, Tiffany reported net income of $1.39 per share against Wall Street estimates of a $1.42 per share. This company is looking to register its fifth-straight quarter of positive revenue increases. Revenue jumped 20.1% in the first quarter of the last fiscal year, 30.5% in the second quarter of the last fiscal year and 20.5% in the third quarter of the last fiscal year.

On Monday, Sterne Agee reiterated its buy rating on Tiffany with an $83 price target. Agee said: "Tiffany is on sale, although we note that comparisons remain challenging through Q3. Its valuation at 13.3x FY13 estimates is below its historic average on forward earnings of 18.3."

The current short interest as a percentage of the float for Tiffany is worth mentioning at 5.1%. That means that out of the 115.64 million shares in the tradable float, 6.38 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.6%, or by about 503,000 shares. If the bears are leaning too hard into this quarter, then shares of Tiffany could see a sizable short-squeeze if the report strong results.

From a technical perspective, TIF is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has sold off hard during the last two months, with shares dropping from a high of $74.20 to a recent low of $60.03 a share. That selloff has pushed TIF into oversold territory since its current relative strength index reading is now 33.69. Oversold can always get more oversold, but if TIF sees any strength post-earnings it could rebound sharply.

If you're bullish on TIF, I would wait until after its report and look for long-biased trades if this stock can take out some near-term overhead resistance at $62 to $63.28 a share with high-volume. Look for volume on that move that hits near or above its three-month average action of 2.1 million shares. If we get that action, look for TIF to re-test its $65 to its 50-day moving average of $67.29 a share if the bulls gain full control of this stock post-earnings.

I would simply avoid TIF or look for short-biased trades if after earnings this stock fails to trigger that move, and then drops back below some major near-term support levels at $60.03 to $58.36 a share with heavy volume. Target a move back towards some previous support at $55.70 to $53.44 a share or possibly lower if the bears spark a notable selloff post-earnings.

Tiffany shows up on a list of 12 Highest-Rated Consumer Stocks Picked by S&P.
2 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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RUE $41.99 1.82%
FRED $14.67 -3.10%
SMTC $21.64 -3.00%
TIF $71.35 -0.97%
TOL $27.30 -0.80%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs