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 Stocks Poised to Pop on Bullish Earnings

Stocks in this article: BNNY BWLD SGEN THRX RAX

Theravance

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

Get Adobe Flash player

Another earnings short-squeeze play is biotechnology and drugs player Theravance (THRX), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Theravance to report revenue of $3.88 million on a loss of 42 cents per share.

If you're looking for a heavily-shorted stock that's been beaten down noticeably heading into its quarterly report, then make sure to check out shares of Theravance. This stock is off by 15% during the last six months, and it's currently trading about six points above its 52-week low of $15.69 a share.

The current short interest as a percentage of the float for Theravance is notable at 11.5%. That means that out of the 54.52 million shares in the tradable float, 7.93 million shares are sold short by the bears. Any bullish earnings news could easily spark a sharp short-covering rally for shares of THRX post-earnings.

From a technical perspective, THRX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has started to flirt with its 50-day moving average of $22.03 today, since shares have hit an intraday high of $22.33 a share. That move is quickly pushing the stock within range of triggering a near-term breakout trade post-earnings.

If you're bullish on THRX, 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 resistance levels at $22.96 to $23.57 a share and then once it clears more resistance at $23.86 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 614,331 shares. If that breakout triggers, then THRX will set up to re-test or possibly take out its next major overhead resistance levels at $25.67 to $27.52 a share.

I would avoid THRX 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 at $21.75 a share with high volume. If we get that move, then THRX will set up to re-test or possibly take out its next major support levels at $19.98 to $19.61 a share. Any high-volume move below $19.61 will then put $18 to $17.06 into range for shares of THRX.

5 of 6

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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