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 Hated Stocks Poised to Pop on Earnings

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

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 17,122.03 +90.89 0.53%
S&P 500 1,996.62 +12.49 0.63%
NASDAQ 4,536.6420 +17.74 0.39%

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