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 Hated Stocks Set to Soar on Earnings


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

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
IGTE $48.00 0.65%
ANGO $13.18 0.00%
NG $3.71 0.00%
OZRK $44.59 0.00%
PDLI $5.23 0.00%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs