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 Hated Stocks Set to Soar on Earnings

Stocks in this article: ANGO OZRK NG IGTE PDLI


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

Get Adobe Flash player

One potential earnings short-squeeze trade in the software complex is iGate (IGTE), which is set to release numbers on Friday before the market open. This company is an outsourcing provider of integrated end-to-end offshore centric information technology and IT-enabled operations solutions and services. Wall Street analysts, on average, expect iGate to report revenue of $268.64 million on earnings of 29 cents per share.

This company has met or topped Wall Street estimates during the last four quarters. In the last quarter, iGate reported earnings per share of 38 cents, beating Wall Street estimates of 32 cents per share. The current short interest as a percentage of the float for iGate is worth mentioning at 5.6%. That means that out of the 25.87 million shares in the tradable float, 1.74 million shares are sold short by the bears.

>>4 Earnings Reports Bigger Than RIM's

From a technical perspective, IGTE is currently trading below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock recently sold off pretty hard from its May high of $19.97 a share to a recent low of $15.65 a share. After hitting that low, shares of IGTE have started to reverse its downtrend since the stock is now making higher lows and higher highs. This move has pushed the stock within range of triggering a near-term breakout trade.

If you're in the bull camp on IGTE, then I would look for long-biased trades after earnings if this stock manages to trigger a near-term breakout above some overhead resistance at $17.90 to $18.43 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 240,144 shares. If we get that move, then IGTE could easily re-test and possibly take out its May high of $19.97 a share post-earnings.

I would simply avoid IGTE or look for short-biased trades after earnings the stock fails to trigger that breakout, and then moves back below its 200-day moving average of $16.27 a share with high volume. If we get that action, then IGTE could possibly re-test and take out its recent low of $15.65 a share if the bears smack this stock lower post-earnings. A high-volume move below $15.65 could mean that IGTE is setting up to re-test its next major support zone at $13.60 a share.

5 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