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 Set to Soar on Bullish Earnings

Intuitive Surgical

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

Get Adobe Flash player

Another potential earnings short-squeeze trade is medical equipment and supplies player Intuitive Surgical (ISRG), which designs, manufactures and markets da Vinci Surgical Systems, EndoWrist instruments and surgical accessories. The company is set to release its numbers on Tuesday after the market close, and Wall Street analysts, on average, expect Intuitive Surgical to report revenue of $534.93 million on earnings of $3.50 per share.

>>5 Rocket Stocks to Buy This Week

During the last quarter, this company topped Wall Street estimates by 22 cents, after reporting a profit of $3.75 a share versus estimates of $3.53 a share. That registered the fourth straight quarter where Intuitive Surgical beat Wall Street estimates. For the second quarter, profit jumped 31.9% to $154.9 million from $117.4 million the year earlier. Revenue soared 26% to $536.5 million from $425.7 million.

The current short interest as a percentage of the float for Intuitive Surgical is notable at 5.3%. That means that out of the 39.93 million shares in the tradable float, 2.08 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.4%, or by about 124,000 shares. If the shorts are caught pressing too hard into this quarter, then we could easily see a large short-squeeze kickoff post-earnings.

From a technical perspective, ISRG is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending range-bound for the last month and change, with shares moving between $481.26 on the downside and $523.76 on the upside. A high-volume move outside of that range post-earnings will likely set up the next major trend for ISRG.

If you're in the bull camp on ISRG, then I would wait until after its report and look for long-biased trades if this stock can manage to break out above some past overhead resistance levels at $521.63 to $523.76 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 324,922 shares. If ISRG triggers that breakout, then look for the stock to fill some of its gap from back in July that started above $550 a share. This stock could even potentially hit $570 a share post-earnings.

I would simply avoid ISRG or look for short-biased trades if after earnings this stock fails to trigger that breakout, and then drops back below its 50-day moving average of $502.79 a share with high volume. If we get that move, then ISRG will setup to re-test or possibly take out its next major support levels at $489.04 to $481.26 a share. If those levels get taken out with volume, then ISRG will challenge more previous support at $471.04 to $467.26 a share.

3 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 17,010.75 -28.74 -0.17%
S&P 500 1,991.20 -1.17 -0.06%
NASDAQ 4,545.0190 +12.9150 0.28%

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