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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Hated Earnings Stocks Poised to Pop

Accretive Health

My first earnings short-squeeze trade idea is provider of services to health care providers Accretive Health (AH), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Accretive Health to report revenue of $236.87 million on earnings of 9 cents per share.

>>5 Stocks Under $10 Set to Soar

The current short interest as a percentage of the float for Accretive Health is rather high at 19.4%. That means that out of the 51.07 million shares in the tradable float, 11.34 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of AH could spike dramatically higher post-earnings.

From a technical perspective, AH is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down big from around $12 a share to its low of $8.55 a share with heavy downside volume. Following that move, shares of AH have started to rebound sharply and re-fill a good portion of that gap, since shares are now trading around $10.85 a share. That move is quickly pushing shares of AH within range of triggering a near-term breakout trade post-earnings.

If you're bullish on AH, 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 of $11.56 a share and its 50-day at $11.91 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1.08 million shares. If that breakout triggers, then AH will set up to re-test or possibly take out its next major overhead resistance levels at $13.54 to $14.19 a share. Any high-volume move above $14.19 will then put this stock in play to re-fill some of its previous gap from last May that started near $18 a share.

I would avoid AH or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below $10 a share with high volume. If we get that move, then AH will set up to re-test or possibly take out its next major support levels at $9.50 to $8.55 a share.

Stock quotes in this article: AH, KTOS, EBIX, ARO, PERI 

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.
DOW 16,414.12 -10.73 -0.07%
S&P 500 1,861.92 -0.39 -0.02%
NASDAQ 4,085.7010 -0.5240 -0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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