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 That Deserve Your Love

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

>>5 Stocks Under $10 Set to Soar


My first earnings short-squeeze trade idea is data storage devices player Fusion-io ( FIO), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Fusion-io to report revenue of $80.48 million on a loss of 7 cents per share.

Earlier today, Piper Jafffray said its first-quarter channel checks for Fusion-io indicated a modest improvement in enterprise demand with easing competitive pressures on the company. The firm, however, keeps a neutral rating on the stock into the first quarter earnings call. Fusion-io has beat analyst estimates in each of the past four quarters.

>>4 Big Stocks on Traders' Radars

The current short interest as a percentage of the float for Fusion-io is extremely high at 44.7%. That means that out of the 86.11 million shares in the tradable float, 28.8 million shares are sold short by the bears. If Fusion-io 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, FIO is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has recently started to break out above some near-term overhead resistance levels at $15.37 to $15.59 a share and above its 50-day moving average of $16.14 a share. That move is quickly pushing shares of FIO within range of triggering a major breakout trade post-earnings.

If you're bullish on FIO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some more near-term overhead resistance levels at $17 to $17.80 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.66 million shares. If that breakout triggers, then FIO will set up to re-fill some of its previous gap down zone from January that started above $20 a share. This stock could easily hit $22 to $24 if that gap gets filled with strong volume.
2 of 7

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
FIO $0.00 0.00%
ANGI $8.97 2.51%
EXPE $116.52 0.65%
MLNX $43.53 0.65%
AAPL $93.64 -0.11%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs