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 Poised to Pop on Bullish Earnings

Hain Celestial Group

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

Get Adobe Flash player

My first earnings short-squeeze trade idea is natural and organic products maker Hain Celestial Group (HAIN), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Hain Celestial Group to report revenue of $473.44 million on earnings of 69 cents per share.

This company has beaten Wall Street estimates for the last four quarters and is coming off a quarter in which it beat estimates by 1 cent, reporting net income of 40 cents per share vs. a mean estimate of 39 cents per share. Hain Celestial Group has averaged year-over-year revenue growth of 25.5% over the last four quarters.

>>5 Bargain Stocks to Play the Resurgent U.S. Consumer

The current short interest as a percentage of the float for Hain Celestial Group is rather high at 11.9%. That means that out of the 37.53 million shares in the tradable float, 5.34 million shares are sold short by the bears. Any bullish earnings news could easily spark a solid short-covering rally for HAIN post-earnings.

From a technical perspective, HAIN is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending slightly over the last month, with shares moving higher from its low of $51.51 to its recent high of $58.76 a share. During that uptrend, shares of HAIN have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HAIN within range of triggering a near-term breakout trade post-earnings.

If you're bullish on HAIN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead at $58.76 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 814,568 shares. If that breakout triggers, then HAIN will set up to re-test or possibly take out its next major overhead resistance levels at $62 to $62.40 a share. Any high-volume move above $62.40 will then put $64 to $66 into focus for shares of HAIN.

I would simply avoid HAIN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average of $56.49 a share with heavy volume. If we get that move, then HAIN will set up to re-test or possibly take out its next major support levels at $53.44 to $51.51 a share. If those levels get taken out with volume, then HAIN could hit $49.63 a share or lower post-earnings.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

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