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
TheStreet Open House

5 Stocks Set to Soar on Bullish Earnings

Stocks in this article: DELLFNURBNRAVNEXPR

Urban Outfitters

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

Get Adobe Flash player

One potential earnings short-squeeze trade is retail apparel player Urban Outfitters (URBN), which is set to release numbers on Monday after the market close. This lifestyle specialty retail company operates under the Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brands. Wall Street analysts, on average, expect Urban Outfitters to report revenue of $671.58 million on earnings of 33 cents per share.

During the last quarter, this company reported a profit of 23 cents per share vs. Wall Street estimates of 20 cents per share. During the fourth quarter, this company missed Wall Street expectations by 3 cents per share.

The current short interest as a percentage of the float for Urban Outfitters is rather high at 9.2%. That means that out of the 106.57 million shares in the tradable float, 9.95 million shares are sold short by the bears. This is a relatively high short interest on a stock with a pretty low tradable float. Any bullish earnings news for URBN could easily spark a sizeable short-squeeze post-earnings.

>>5 Consumer Stocks Hedge Funds Love

From a technical perspective, URBN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock triggered a breakout trade back in July once it cleared some overhead resistance levels at $26.68 to $28.89 a share with high volume. Following that breakout, shares of URBN ran up to a recent high of $31.81 a share. That move has now pushed URBN within range of triggering another major breakout trade post-earnings.

If you're bullish on URBN, then I would wait until after they report and look for long-biased trades if this stock can manage to break out above some near-term overhead resistance at $31.39 to $31.81 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2,565,980 shares. If we get that move, then look for URBN to re-test and possibly take out its next significant overhead resistance level at $33.90 a share post-earnings.

I would avoid URBN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term support at $30 a share, and also its 50-day moving average of $29.16 a share with heavy volume. If we get that action, then URBN will setup to re-test and possibly take out its 200-day moving average of $28 a share post-earnings.

4 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!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

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