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

4 Stocks Poised to Pop on Earnings


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

Get Adobe Flash player

My first earnings short-squeeze play today is chemical manufacturing stock Monsanto (MON - Get Report), a provider of agricultural products for farmers, which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Monsanto to report revenue of $2.55 billion on a loss of 42 cents per share.

>>5 Rocket Stocks to Buy Ahead of Earnings Season

This stock has been uptrending very strong so far in 2012, with shares up close to 30%. Monsanto is currently trading just a point off its 52-week high of $91.95 a share ahead of the company's earnings report. The current short interest as a percentage of the float for Monsanto sits at 1%. That means that out of the 531.36 million shares in the tradable float, 5.57 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.4%, or by about 236,000 shares.

From a technical perspective, MON is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months, with shares soaring from a low of $69.70 to its recent high of $91.95 a share. During that uptrend, shares of MON have been consistently making higher lows and higher highs, which is bullish technical; price action. That move has now pushed MON within range of triggering a near-term breakout trade post-earnings.

If you're bullish on MON, then I would wait until after its report and look for long-biased trades if it can manage to break out above some near-term overhead resistance at $91.95 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.9 million shares. If we get that breakout, then look for MON to head north of $100 a share post-earnings.

I would simply avoid MON or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below its 50-day moving average at $88.13 a share with heavy volume. If we get that move, then MON will setup to re-test or possibly take out its next significant support level at $84.86 a share post-earnings.
2 of 5

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
ISCA $32.52 0.00%
MON $94.58 0.00%
RECN $14.13 0.00%
STZ $137.95 0.00%
AAPL $94.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs