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 Stocks Set to Soar on Bullish Earnings

FactSet Research Systems

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

Get Adobe Flash player

One potential earnings short-squeeze trade in the computer services complex is FactSet Research Systems (FDS - Get Report), which is set to release numbers on Tuesday before the market open. This company is a provider of integrated financial information and analytical applications to the global investment community. Wall Street analysts, on average, expect FactSet Research Systems to report revenue of $202.95 million on earnings of $1.04 per share.

This company is looking to beat Wall Street estimates for the third straight quarter. Last quarter, it report a profit of $1.05 per share vs. Wall Street estimates of $1 per share, and the quarter before, the company topped estimates by 2 cents with a profit of $1.02 per share vs. estimates of $1 per share.

The current short interest as a percentage of the float for FactSet Research Systems stands at 7.8%. That means that out of the 41.34 million shares in the tradable float, 3.22 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to trigger a sizeable short-squeeze post-earnings if FactSet Research Systems can deliver the news the bulls are looking for.

>>18 Dividend Stocks That Will Outlive the Hype

From a technical perspective, FDS is currently trading above both its 50-day and 200-day moving averages, which bullish. This stock has been uptrending strong since it broke out in March with heavy volume above some overhead resistance at around $93 a share. Since triggering that breakout, shares of FDS have soared to a recent high of $109.20 a share. During that move, shares of FDS have consistently made higher lows and higher highs, which is bullish technical price action. That move has how pushed FDS within range of triggering a near-term breakout trade post-earnings.

If you're in the bull camp on FDS, then I would wait until after they report and look for long-biased trades if this stock can manage to trigger a break out above some near-term overhead resistance at $108.00 to $109.20 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 400,680 shares. If we get that action, then the bulls could easily push FDS towards $120 a share or higher post-earnings.

I would avoid FDS or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then drops below its 50-day moving average of $103.27 to $102.11 a share with high-volume. If we get that move, then look for FDS to trade down towards $98 to $95 a share or possibly lower if the bears blast this stock down 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
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
CASY $114.47 0.00%
FDS $152.15 0.00%
FNSR $16.35 0.00%
KORS $52.95 0.00%
PIR $6.73 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs