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 Hated Stocks Poised to Pop on Earnings

Stocks in this article: DECK MAKO SHLD DWA BRLI

If you're bullish on SHLD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 200-day moving average at $49.06 a share and then once it takes out more overhead resistance at $49.18 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 1.14 million shares. If that breakout hits, then SHLD will set up to re-test or possibly take out its next major overhead resistance level at $55 to $60 a share.

I would avoid SHLD 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 at $44.72 a share with high volume. If we get that move, then SHLD will set up to re-test or possibly take out its next major support levels at $42.50 to $40 a share. Any high-volume move below $40 will then put its 52-week low of $38.40 into range for shares of SHLD.

DreamWorks Animation

Another earnings short-squeeze prospect is motion pictures maker DreamWorks Animation (DWA), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect DreamWorks Animation to report revenue of $216.04 million on a loss of 6 cents per share.

During the last quarter, DreamWorks Animation reported revenue of $186.3 million, and GAAP reported sales were 16% higher than the prior-year quarter's $160.8 million. The company reported EPS of 29 cents per share, and GAAP EPS of 29 cents per share was 26% higher than the prior-year quarter's 23 cents per share.

The current short interest as a percentage of the float for DreamWorks Animation is extremely high at 26.6%. That means that out of the 65.90 million shares in the tradable float, 17.37 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 1.9%, or by about 326,000 shares. If the shorts are caught leaning too strong into a bullish quarter, then shares of DWA could explode higher 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 17,523.41 +166.54 0.96%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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