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 Stocks Poised to Pop on Bullish Earnings

Stocks in this article: PLL PIR LRN EPM OPTT

Evolution Petroleum

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

Get Adobe Flash player

A possible earnings short-squeeze trade in the oil and gas complex is Evolution Petroleum (EPM), which is set to release numbers on Wednesday after the market close. This is a petroleum company engaged primarily in the acquisition, exploitation and development of properties for the production of crude oil and natural gas, onshore in the U.S. Wall Street analysts, on average, expect Evolution Petroleum to report revenue of $4.82 million on earnings of 5 cents per share.

The current short interest as a percentage of the float for Evolution Petroleum sits at 4.6%. That means that out of the 14.36 million shares in the tradable float, 1.03 million shares are sold short by the bears. This stock has a decent short interest and an extremity low tradable float. Any bullish earnings news could easily spark a solid short-covering rally post-earnings.

>>5 Stocks Pointing to the Right Place and the Right Time

From a technical perspective, EPM is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has been trading within a range for the past three months, with shares moving between $7.50 on the downside and $8.99 on the upside. A move outside of that range post-earnings will likely setup the next major trend for EPM.

If you're in the bull camp on EPM, then I would look for long-biased trades after earnings if this stock manages to trigger breakout trade above some near-term overhead resistance levels at $8.56 to $8.60 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 58,567 shares. If that breakout triggers, then EPM will setup to re-test or possibly take out its next major overhead resistance level at $8.99 a share. If that $8.99 level gets taken out, then EPM could tag its 52-week high of $10.14 a share or higher post-earnings.

I would simply avoid EPM or look for short-biased trades after earnings the stock fails to trigger that breakout and then moves back below some major near-term support areas at $8 a share with high volume. If we get that move, then EPM will setup to re-test and possibly take out its next major support levels at $7.75 to $7.50 a share. A move below $7.50 will most likely take EPM back down towards $6.80 to $6.50 a share post-earnings.

5 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 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

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