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 Stocks Poised to Pop on Bullish Earnings


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

Get Adobe Flash player

My final earnings short-squeeze play today is data storage solutions provider SanDisk (SNDK - Get Report), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect SanDisk to report revenue of $1.30 billion on earnings of 77 cents per share.

During the last quarter, this company reported earnings of 56 cents per share. Over the last four quarters, SanDisk has reported decreasing revenue. In the fourth quarter of the last fiscal year, revenue dropped 2.2% to $1.54 billion. Before that, revenues dropped 10.1% year-over-year in the third quarter of the last fiscal year, and it dropped 24.9% in the second quarter of the last fiscal year.

Just recently, Stifel reiterated its buy rating on SNDK and changed its price target from $54 to $62 a share.

The current short interest as a percentage of the float for SanDisk sits at 3.4%. That means that out of the 241.22 million shares in the tradable float, 8.09 million shares are sold short by the bears. This isn't a giant short interest, but it's more than enough to send shares of SNDK sharply higher post-earnings if the company can deliver the earnings news the bulls are looking for.

From a technical perspective, SNDK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months and change, with shares soaring higher from its low of $38.47 to its recent high of $58.92 a share. During that uptrend, shares of SNDK have been consistently making higher lows and higher highs, which is bullish technical price action.

If you're in the bull camp on SNDK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high of $58.92 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 3.92 million shares. If that breakout triggers, then SNDK could easily trend well north of $60 a share. Some possible upside targets are $70 or higher if SNDK gets into new 52-week-high territory with heavy volume.

I would simply avoid SNDK 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 $56.50 to $56 a share with high volume. If we get that move, then SNDK will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $52.80 a share to $50 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and . You can follow Pedone on Twitter at or @zerosum24.
6 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
CNS $39.27 0.00%
GHL $22.02 0.00%
SNDK $75.13 0.00%
URI $66.93 0.00%
WWW $18.95 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs