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 Stocks Set to Soar on Bullish Earnings

Shuffle Master

My first earnings short-squeeze trade idea today is casinos and gaming player Shuffle Master (SHFL), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Shuffle Master to report revenue of $67.93 million on earnings of 20 cents per share.

Just recently, Brean Murray said that investors concern regarding Shuffle Master's electronic table systems segment has created a buying opportunity before its third-quarter results. The firm thinks the concerns are overblown since the segment only makes up 10% of revenue and 6% of profits. Brean has a buy rating on the stock and a $19 price target.

>>5 Stocks Everyone Hates -- But You Should Love

The current short interest as a percentage of the float for Shuffle Master is notable at 4.1%. That means that out of the 54.51 million shares in the tradable float, 2.25 million shares are sold short by the bears. If it can deliver the earnings news the bulls are looking for, then we could easily see a large short-squeeze develop post-earnings.

From a technical perspective, SHFL is currently trading above both its 50-day and 200-day moving averages, which is bullish. For the past two months, shares of SHFL have been trading in a sideways trading pattern between $13 on the downside and $15.84 on the upside. A move outside of that range post-earnings will likely setup the next major trend for SHFL.

If you're bullish on SHFL, then I would wait until after it reports earnings and look for long-biased trades if it can break out above some overhead resistance levels at $15.84 to $16.18 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 482,809 shares. If that breakout triggers, then look for SHFL to re-test or possibly take out its next major overhead resistance levels at $17.90 to $18.37 a share.

I would simply avoid SHFL or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term support at $14.49 to $14.23 a share with high volume. If we get that move, then look for SHLF to re-test and possibly take out its next major support levels at $13.14 to $12.45 a share.
2 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

Check Out Our Best Services for Investors

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
GCOM $0.00 0.00%
SHFL $23.19 0.00%
PMFG $6.16 -3.30%
AF $15.04 0.00%
UNFI $35.67 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs