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 first earnings short-squeeze play is Internet subscription service streaming television shows and movies player Netflix (NFLX - Get Report), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Netflix to report revenue of $1.02 billion on earnings of 18 cents per share.

Andy Hargreaves, of Pacific Crest Securities, recently said he expects solid first-quarter results from Netflix, including the addition of 1.74 million U.S. streaming subscribers, and another 1.1 million additional subscribers in the company's international markets. Hargreaves has an outperform rating on the stock and $225 price target.

>>4 Big Stocks on Traders' Radars

The current short interest as a percentage of the float for Netflix is pretty high at 13.7%. That means that out of the 49.18 million shares in the tradable float, 7.49 million shares are sold short by the bears. If Netflix can deliver the earnings news the bulls are looking for, then we could easily see a monster short-squeeze for this stock post-earnings.

From a technical perspective, NFLX is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last month, with shares moving between $182.35 on the upside and $159 on the downside. A high-volume move above the upper-end of its recent range could easily trigger a major breakout trade for NFLX.

If you're bullish on NFLX, then I would wait until after its report and look for long-biased trades if this stock manages to take out its 50-day moving average of $180.11 a share and then once it breaks out above some more near-term overhead resistance at $182.35 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 5.63 million shares. If that breakout triggers, then NFLX will set up to re-test or possibly take out its next major overhead resistance levels at $197.06 to $197.62 a share. Any move above $197.62 would then push NFLX into new 52-week-high territory, which is bullish price action.

I would simply avoid NFLX 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 levels at $161.80 to $159 a share with high volume. If we get that move, then NFLX will set up to re-test or possibly take out its gap up day high from January at around $150 a share. Any high-volume move below $140 would then push NFLX into that gap up zone that started around $100 a share.
2 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
AWAY $0.00 0.00%
CREE $29.23 0.00%
DV $16.74 0.00%
LL $12.33 0.00%
NFLX $87.40 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs