This Day On The Street
Continue to site right-arrow
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 Poised to Pop on Positive Earnings

Stocks in this article: OVTI RLD SAI VRA ASNA


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

Get Adobe Flash player

Another potential earnings short-squeeze play is SAIC (SAI), which is set to release numbers on Thursday after the market close. This is a provider of scientific, engineering, systems integration, and technical services and solutions to agencies of the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other civil agencies, state and local government agencies, foreign governments, and customers in commercial markets. Wall Street analysts, on average, expect SAIC to report revenue of $2.69 billion on earnings of 33 cents per share.

On Tuesday, shares of SAIC closed up 4.3% to $11.08 on heavy volume after Raymond James upgraded the stock, saying that shares have declined too much and buybacks or asset sales could help it rise. The firm upgraded the stock to outperform from market perform and slapped a $14 price target on the shares. Raymond James said the stock feels too cheap, trading at a 13% discount to government-information technology firms, even though it has better fundamentals.

The current short interest as a percentage of the float for SAIC is notable at 2.7%. That means that out of the 281.49 million shares in the tradable float, 7.25 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 9.9%, or by about 652,000 shares. This is far from a huge short interest, but if the bears are leaning too hard into this quarter with their recent adds, then it could see a decent short squeeze off bullish numbers.

>>5 Stocks Poised for Breakouts

From a technical perspective, SAI is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has plunged since it hit its March high of $14.06 to a recent low of $10.30 a share. During that sharp drop, shares of SAI have consistently made lower highs and lower lows, which is bearish technical price action. That said, SAI has now started to bounce off oversold conditions since its relative strength index reading was well below 30 for the past couple of weeks.

If you're bullish on SAI, then I would wait until after its report and look for long-biased trades if this stock can manage to trigger a near-term break out above some overhead resistance at $11.29 a share with high-volume. Look for volume on that move that registers near or above its three-month average action of 2,708,990 shares. If we get that move, look for SAI to potentially trade back above its 50-day at $12 and its 200-day at $12.41 a share post-earnings.

I would avoid SAI or look for short-biased trades if the stock fails to trigger that breakout above $11.29, and then drops below some major near-term support at $10.30 a share with high-volume. If we get that action, then look for SAI to drop 10% to 15% if the bears hammer this stock lower post-earnings.

4 of 6

Select the service that is right for you!

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!


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

  • 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