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


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

Get Adobe Flash player

My first earnings short-squeeze play today is Cree (CREE - Get Report), a provider of LED products, lighting products and semiconductor products for power and radio-frequency applications, which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Cree to report revenue of $317.89 million on earnings of 26 cents per share.

Cree is looking to beat Wall Street estimates for the third straight quarter. During the last quarter, Cree reported a profit of 16 cents per share versus estimates of 13 cents per share, and in the previous quarter, the company beat forecasts by 2 cents with a profit of 15 cents per versus estimates of 13 cents per share.

>>3 Tech Stocks Hedge Funds Are Buying

The current short interest as a percentage of the float for Cree is rather high at 15.5%. That means that out of the 113.34 million shares in the tradable float, 17.62 million shares are sold short by the bears.

From a technical perspective, CREE is currently trading below both its 50-day and 200-day moving averages, which is bearish. During the last month, shares of CREE have been trending sideways between $24.50 and $26 a share. A high-volume move outside of that range post-earnings will likely setup the next major trend for CREE.

If you're bullish on CREE, then I would wait until after its report and look for long-biased trades once it manages to break out above some near-term overhead resistance levels at $26 to $27.27 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1,435,600 shares. If that breakout triggers, then look for CREE to re-test or possibly take out its next major overhead resistance at $29.47 a share post-earnings.

I would simply avoid CREE or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term levels at $24.50 to $24 a share with heavy volume. If we get that move, then CREE will setup to re-test or possibly take out its next major support levels at $22.25 to $20.25 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
CREE $24.32 0.00%
CLB $132.43 0.00%
ISRG $633.36 0.00%
LNN $76.64 0.00%
MLNX $43.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs