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 Poised to Pop on Bullish Earnings

Stock quotes in this article: PLL, PIR, LRN, EPM, OPTT

Pall

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

Get Adobe Flash player

My first earnings short-squeeze play is diversified machinery player Pall (PLL), which is set to report results on Wednesday after the market close. This company manufactures and markets filtration, purification and separation products and integrated systems solutions worldwide. Wall Street analysts, on average, expect Pall to report revenue of $718.79 million on earnings of 77 cents per share.

Pall has posted a profit for the last eight quarters, and for the last four, profit has trended higher year over year by an average 24.4%. During the fourth quarter of last year, Pall posted its largest jump profit of 77.2%.

>>5 High-Yielding Stocks in a Strong Bull Trend

The current short interest as a percentage of the float for Pall stands at 6.3%. That means that out of the 116.20 million shares in the tradable float, 7.3 million are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.9%, or by about 342,000 shares.

From a technical perspective, PLL is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong off its July low of $49.77 to its recent high of $57.93 a share. During that uptrend, shares of PLL have consistently been making higher lows and higher highs, which is bullish price action. That move has now pushed PLL within range of triggering a breakout trade post-earnings.

If you're bullish on PLL, then I would wait until after its report and look for long-biased trades if this stock can manage to break out above some overhead resistance levels at $57.93 to $58.72 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 776,867 shares. If that breakout triggers, then look for PLL to re-test and possibly take out its next major overhead resistance level at $60.38 a share. If that $60.38 level gets taken out, then PLL could tag $64 a share or higher post-earnings.

I would simply avoid PLL or look for short-biased trades if after earnings it fails to trigger that breakout and then drops below its 200-day moving average of $56.75 a share with heavy volume. If we get that move, then PLL will setup to re-test or possibly take out its 50-day moving average of $54.03 a share. If that 50-day gets taken out, then PLL could drop back towards $52 to $50 a share post-earnings.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,888.10 -154.80 -0.91%
S&P 500 1,959.65 -12.64 -0.64%
NASDAQ 4,457.3130 -36.0770 -0.80%

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