This Day On The Street
Continue to site
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

5 Hated Earnings Stocks Poised to Pop


Another potential earnings short-squeeze play is Ebix ( EBIX), a software and e-commerce solutions provider to the insurance industry, which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Ebix to report revenue of $54.34 million on earnings of 45 cents per share

The current short interest as a percentage of the float for Ebix is extremely high at 39%. That means that out of the 33.45 million shares in the tradable float, 13.13 million shares are sold short by the bears. If this company can deliver the earnings news the bulls are looking for, then we could easily see a monster short-squeeze develop post-earnings.

From a technical perspective, EBIX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways for the last month, with shares moving between $16.99 on the upside and around $15 on the downside. A high-volume move above the upper-end of that range post-earnings will likely trigger a major breakout trade for shares of EBIX.

If you're bullish on EBIX, 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 $15.98 to $16.99 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 547,455 shares. If that breakout triggers, then EBIX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $19.24 to $19.84 a share. Any high-volume move above $19.84 will then put $22 to $23 into range for shares of EBIX.

I would avoid EBIX 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 $15 a share with high volume. If we get that move, then EBIX will set up to re-test or possibly take out its next major support levels at $14 to $13 a share.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AH $0.00 0.00%
ARO $0.19 -5.05%
EBIX $32.09 3.28%
KTOS $3.16 -0.94%
PERI $2.13 -3.18%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs