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 Stocks Poised to Pop on Bullish Earnings

Cirrus Logic

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

Get Adobe Flash player

Another earnings short-squeeze play is semiconductor player Cirrus Logic (CRUS), which is set to release its numbers on Monday after the market close. This company develops analog and mixed-signal integrated circuits for a range of audio and energy markets. Wall Street analysts, on average, expect Cirrus Logic to report revenue of $100.94 million on earnings of 21 cents per share.

This company has met or beat Wall Street's bottom-line earnings estimates in three of the last four quarters. Just this morning, Canaccord Genuity issued a new buy rating on the stock with a $35 a share price target. The firm said Cirrus Logic is leveraged to new product release at Apple (AAPL).

The current short interest as a percentage of the float for Cirrus Logic is rather high at 13.9%. That means that out of the 64.06 million shares in the tradable float, 8.86 million shares are sold short by the bears. The short-sellers have also been increasing their bets from the last reporting period by 8.4%, or by about 688,000 shares. If the bears are caught leaning too hard into a solid quarter for Cirrus Logic, then we could easily see a monster short-squeeze setup post-earnings.

>>10 Top-Rated Tech Stocks That Pay Big Dividends

From a technical perspective CRUS is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending pretty strong for the last three months, with shares making mostly higher lows and higher highs, which is bullish price action. Shares of CRUS have recently traded back above its 50-day moving average of $27.92 a share, and its quickly moving within range of triggering a major breakout trade.

If you're in the bull camp on CRUS, then I would wait until after they report and look for long-biased trades if this stock triggers a break out above some near-term overhead resistance levels at $30.22 to $31.23 a share with heavy volume. Look for volume on that move that clocks in close to or above its three-month average action of 2,525,680 shares. If we get that move, then CRUS will have a great chance of trading north of $35 a share.

I would simply avoid CRUS or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then moves back below its 50-day moving average of $27.92 a share with high volume. If we get that action, then CRUS will likely re-test and possibly take out its next significant support levels at $24.94 to $24.44 a share post-earnings.

3 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 17,121.92 +15.22 0.09%
S&P 500 2,000.10 +0.08 0.00%
NASDAQ 4,571.5450 +0.9080 0.02%

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