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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Hated Stocks Poised to Pop on Earnings

Bed Bath & Beyond

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

Get Adobe Flash player

My first earnings short-squeeze play is specialty retailer Bed Bath & Beyond (BBBY), which is set to report results on Wednesday after the market close. This company sells a range of domestics merchandise and home furnishings. Wall Street analysts, on average, expect Bed Bath & Beyond to report revenue of $2.25 billion on earnings of 84 cents per share.

Wall Street is looking for Bed Bath & Beyond to report first-quarter earnings growth of 17% and a rise of 6.4% in sales this week. This company has posted double-digit EPS gains for 12 quarters in a row, on high single-digit or low double-digit revenue growth. Bed Bath & Beyond has also beaten Wall Street profit estimates in seven of the last eight quarters.

The current short interest as a percentage of the float for Bed Bath & Beyond sits at 2.5%. That means that out of the 223.77 million shares in the tradable float, 5.65 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-covering rally if BBBY delivers the numbers the bulls are looking for.

>>8 Stocks to Help Keep the Bear Market at Bay

From a technical perspective, BBBY is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past five months, with shares soaring from a low of $57.58 to a high of $74.67 a share. During that run, shares of BBBY have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed BBBY within range of triggering a major breakout trade.

If you're bullish on BBBY, then I would wait until after they report earnings and look for long-biased trades if this stock can manage to trigger a break out to a new 52-week high above $74.67 a share with high-volume. Look for volume on that move that hits near or above its three-month average action of 2.6 million shares. If we get that move, then look for BBBY will be trading in all-time high territory. Target a move towards $80 to $85 a share if the bulls gain full control of this stock post-earnings.

I would simply avoid BBBY or look for short-biased trades if after earnings it fails to trigger that breakout to new 52-week highs, and then drops below some near-term support at $72 a share with high volume. If we get that move, then BBBY could easily re-test and possibly take out its 50-day moving average of $70.43 a share post-earnings.

Stock quotes in this article: BBBY, CLC, APOG, SONC, MU 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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