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

Astoria Financial

A potential earnings short-squeeze trade in the banking complex is Astoria Financial (AF), which is set to release numbers on Monday after the market close. Astoria provides various banking and financial products and services in the U.S. Wall Street analysts, on average, expect Astoria Financial to report revenue of $87.33 million on earnings of 14 cents per share.

This stock has been trending bullishly so far in 2012, with shares up over 20%. As we approach its earnings report, this stock is trading just a few cents off entering new 52-week-high territory.

>>5 Technical Trades Under $10

The current short interest as a percentage of the float for Astoria Financial is pretty high at 13.7%. That means that out of the 67.73 million shares in the tradable float, 11.53 million shares are sold short by the bears. This is a large short interest on a stock with a relatively low float. Any bullish earnings news could easily spark a solid short-covering rally post-earnings.

From a technical perspective, AF is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past two months, with shares consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed AF within range of breaking out and making new 52-week highs post-earnings.

If you're bullish on AF, then I would wait until after it reports earnings and look for long-biased trades if this stock can manage to print a new 52-week high above $10.59 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 540,062 shares. If we get that move, then look for AF to re-test or possibly take out its next major overhead resistance levels at $13 to $14 a share.

I would avoid AF or look for short-biased trades if after earnings it fails to trigger that breakout, and then moves back below some near-term support levels at $10.20 to $10 a share with heavy volume. If we get that action, then look for AF to re-test or possibly take out its 50-day moving average of $9.78 a share. If that 50-day gets taken out, then target a possible drop back towards its 200-day moving average of $9.08 a share post-earnings.

4 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 17,333.39 +67.40 0.39%
S&P 500 2,018.12 +6.76 0.34%
NASDAQ 4,605.5810 +12.1560 0.26%

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