This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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: SODA EZCH FSYS FTK AFFY

SODA Chart SODA data by YCharts
SodaStream International

My first earnings short-squeeze play is soda machine maker SodaStream International (SODA), which is set to release numbers on Wednesday before the market open. This company, along with its subsidiaries, is engaged in developing, manufacturing and marketing home beverage carbonation systems and related products. Wall Street analysts, on average, expect SodaStream International to report revenues of $90.64 million on earnings of 48 cents per share.

If you're looking for a strong uptrending heavily shorted stock heading into its earnings report this week, then make sure to check out shares of SodaStream International. This stock has been on fire during the last three months, with shares up a whopping 39%. The current short interest as a percentage of the float for SodaStream International is extremely high at 55.2%. That means that out of the 16.99 million shares in the tradable float, 9.85 million shares are sold short by the bears.

From a technical perspective, SODA is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock formed a double-bottom chart pattern back in May at around $29.82 to $29.44 a share. After hitting that bottom, shares of SODA have soared to its recent high of $43.70 a share. During that uptrend, shares of SODA have mostly made higher lows and higher highs, which is bullish technical price action. That move has now pushed SODA within range of triggering a near-term breakout trade.

If you're bullish on SODA, then I would wait until after they report earnings and look for long-biased trades, if this stock can manage to take out some overhead resistance at $44 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1,041,170 shares. If we get that move, then SODA will have a great chance to re-test and possibly take out its next major overhead resistance level at $48.13 a share.

I would simply avoid SODA or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term support at $40 a share with high volume. If we get that move, then look for SODA to re-test and possibly take out either its 50-day at $37.53 or its 200-day at $35.77 a share.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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