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 Stocks Poised to Pop on Bullish Earnings

8x8

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

Get Adobe Flash player

One earnings short-squeeze play in the communications complex is 8x8 (EGHT), which is set to release numbers on Wednesday after the market close. This company develops and markets telecommunications services for Internet protocol, telephony and video applications, as well as Web-based conferencing and unified communications services, managed hosting and cloud-based computing services. Wall Street analysts, on average, expect 8x8 to report revenue of $24.86 million on earnings of 4 cents per share.

During the last quarter, this company reported revenue of $24.22 million, and GAAP sales were 333% higher than the previous quarter's $18.2 million. The current short interest as a percentage of the float for 8x8 is pretty high at 12.6%. That means that out of the 60.76 million shares in the tradable float, 8.49 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.4%, or by about 432,000 shares.

From a technical perspective, EGHT is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong off its May low of $3.80 a share, with shares jumping to its recent high of $4.52 a share. During that uptrend, shares of EGHT have been making higher lows and higher highs, which is bullish technical price action. That move has now pushed EGHT within range of triggering a near-term breakout trade post-earnings.

If you're bullish on EGHT, 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 overhead resistance at $4.52 to $4.73 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 419,287 shares. If we get that action, then EGHT could well be on its way of trading north of $5 a share. In fact, this stock could potentially hit or take out its 2011 high of $5.44 a share if the bulls gain full control of this stock post-earnings.

I would avoid EGHT if it fails to trigger that breakout after earnings and then look for this stock to re-test its 50-day moving average of $4.13 a share.

Stock quotes in this article: URI, FRX, EGHT, UFPI, PNFP 

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 16,442.99 +18.14 0.11%
S&P 500 1,867.56 +5.25 0.28%
NASDAQ 4,104.7510 +18.5260 0.45%

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