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
TheStreet Open House

5 Stocks That Could Pop Post-Earnings

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

Get Adobe Flash player

Bio-Reference Laboratories

One potential earnings short-squeeze play in the medical laboratories and research complex is Bio-Reference Laboratories (BRLI - Get Report), set to release numbers Thursday before the market open. This company is engaged in providing laboratory-testing services to customers in the greater New York metropolitan area, as well as to customers in other states. Wall Street analysts, on average, expect Bio-Reference Laboratories to report revenue of $161.48 million on earnings of 32 cents per share.

The current short interest as a percentage of the float for Bio-Reference Laboratories is extremely high at 22.6%. That means that out of the 24.57 million shares in the tradable float, 5.56 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.4%, or by about 234,000 shares. This is a large short-interest on a stock with a very small float. If Bio-Reference Laboratories beats earnings and raises forward guidance, then this stock could explode to the upside post-earnings.

From a technical perspective, BRLI is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. During the last three months, BRLI has been downtrending from a high of $24.48 to a recent low of $18.29 a share. During that move lower, shares of BRLI have consistently made lower highs and lower lows, which is bearish technical price action. That said, BRLI could be ready to reverse that trend if it can return to a chart pattern of higher highs and higher lows post-earnings.

If you're in the bull camp on BRLI, then I would wait until after they report and look for long-biased trades if this stock can manage to move back above its 50-day moving average of $21.73, and then above some near-term overhead resistance at $22.51 a share with high-volume. Look for volume on that move that registers near or above its three-month average action of 200,945 shares. If we get that action, then the bulls could push BRLI back up towards $23 to $24.50 a share or higher post-earnings.

I would avoid BRLI or look for short-biased trades if the stock fails to maintain a trend above its 50-day at $21.73 and then drops below some major near-term support at $18.29 a share with high volume. If we get that move, then look for BRLI to trend down toward $16 to $15.50 a share or lower if the bears spark a selloff post-earnings.

4 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
XIDE $0.00 0.00%
BRLI $35.10 0.00%
LULU $64.83 0.00%
MTN $100.45 0.00%
TITN $13.28 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

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