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 Earnings Short Squeeze Plays to Trade

Stocks in this article: BSFT FOSL QUAD THC MAKO

I would avoid QUAD or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some key near-term support levels at $18.35 to $17.58 a share with high volume. If we see that action, then QUAD will set up to re-test or possibly take out its next major support levels at $16.75 to $15.50 a share.

Tenet Healthcare

Another earnings short-squeeze trade candidate is Tenet Healthcare (THC), which is set to release numbers on Wednesday before the market open. This is an investor-owned health care services company whose subsidiaries and affiliates mainly operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Wall Street analysts, on average, expect Tenet Healthcare to report revenue of $2.24 billion on earnings of 34 cents per share.

This company has beaten Wall Street estimates for the last two quarters in a row and its coming off a quarter were it beat estimates by 20 cents, after reporting net income of 40 cents per share against a mean estimate of 20 cents per share. During the first quarter, Tenet Healthcare beat Wall Street estimates by 20 cents with net income of 52 cents per share versus a mean estimate of 32 cents per share.

The current short interest as a percentage of the float for Tenet Healthcare is rather high at 8.3%. That means that out of the 88.34 million shares in the tradable float, 8.50 million shares are sold short by the bears. If the bulls get the news they're looking for from THC, then we could easily see a sharp short-covering rally develop post-earnings.

From a technical perspective, THC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strongly for the last three months, with shares surging from a low of $17.24 to its recent high of $26.96 a share. During that uptrend, shares of THC have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed THC within range of triggering a near-term breakout trade post-earnings.

5 of 7

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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