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 Bullish Earnings

Worthington Industries

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

Get Adobe Flash player

A potential earnings short-squeeze trade in the iron and steel complex is Worthington Industries (WOR), which is set to release numbers on Thursday before the market open. This is a diversified metals processing company, focused on steel value-added steel processing and manufactured metal products. Wall Street analysts, on average, expect Worthington Industries to report revenue of $682.41 million on earnings of 53 cents per share.

The current short interest as a percentage of the float for Worthington Industries is pretty high at 9.8%. That means that out of the 51.97 million shares in the tradable float, 5.10 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.6%, or by about 179,000 shares. If the bears are caught leaning too hard into this quarter, then we could easily see a sharp short squeeze develop for WOR post-earnings.

>>5 Foreign Stocks That Could Pop This Summer

From a technical perspective, WOR is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently hit a low of $15.45 a share, and since then it has rallied back above both its 50-day and 200-day moving averages. That move has now pushed WOR within range of triggering a near-term breakout trade post-earnings.

If you're bullish on WOR, then I would wait until after its report and look for long-biased trades if this stock can manage to trigger a break out above some near-term overhead resistance at $17.63 to $17.94 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 657,928 shares. If we get that action, then WOR has a solid chance of hitting $19 to $19.85 a share post-earnings if the bulls gain full control of this stock.

I would avoid WOR or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below its 50-day at $17.03 and its 200-day at $16.87 a share with high-volume. If we get that move, then look for WOR to re-test and possibly take out its recent low of $15.45 a share if the bears hammer this stock down post-earnings.

Stock quotes in this article: FINL, FDO, WOR, TIBX, GBX 

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