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
TheStreet Open House

5 Earnings Stocks Poised to Pop

Matthews International

One potential earnings short-squeeze candidate is Matthews International (MATW), which is set to release numbers on Thursday after the market close. This is a designer, manufacturer and marketer principally of memorialization products and brand solutions. Wall Street analysts, on average, expect Matthews International to report revenue of $220.48 million on earnings of 43 cent per share.

If you're looking for a stock with a decent short interest that's been uptrending strongly heading into its quarterly earnings report, then make sure to check out shares of Matthews International. This stock has returned 11.6% during the last three months and shares are currently trading just two points off its 52-week high of $34.36 a share.

The current short interest as a percentage of the float for Matthews International is pretty high at 8.3%. That means that out of the 26.60 million shares in the tradable float, 2.22 million shares are sold short by the bears. Any bullish earnings news could easily spark a large short-squeeze for MATW post-earnings.

From a technical perspective, MATW is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strongly for the last two months, with shares soaring from its low of $27.32 to its recent high of $33.46 a share. During that uptrend, shares of MATW have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed MATW within range of triggering a near-term breakout trade post-earnings.

If you're bullish on MATW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $33.46 to $34.36 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 90,007 shares. If that breakout triggers, then MATW will set up to re-test or possibly take out its next major overhead resistance levels at $36 to $37.19 a share.

I would avoid MATW or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $32.50 to $31.43 a share with high volume. If we get that move, then MATW will set up to re-test or possibly take out its 50-day at $30.99 a share or its 200-day at $30.33 a share.

4 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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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