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 Ready to Soar 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 global provider of communications software and services BroadSoft ( BSFT), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect BroadSoft to report revenue of $38.60 million on earnings of 11 cents per share.

This company has topped Wall Street analysts' estimates four times in the past four quarters. Just recently, William Blair said the company is closer to a collaboration with Google that could focus on enterprise resellers, system integrators and MSPs. The firm has an outperform rating on the stock.

The current short interest as a percentage of the float for BroadSoft is extremely high at 16%. That means that out of the 27.59 million shares in the tradable float, 4.16 million shares are sold short by the bears. This is a stock with a high short interest and relatively low tradable float. This is the perfect combination needed for a large short squeeze, if the bulls get the earnings news they're looking for.

From a technical perspective, BSFT is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. Just today, shares of BSFT have started to trend back above its 50-day moving average of $25.28 a share. That move is quickly pushing shares of BSFT within range of triggering a near-term breakout trade.

If you're in the bull camp on BSFT, 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 $28 to $29.40 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 981,027 shares. If that breakout triggers, then BSFT will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $32.48 a share to $34 to $36 a share.

I would simply avoid BSFT or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $25.58 a share with high volume. If we get that move, then BSFT will set up to re-test or possibly take out its next major support levels at $23.32 to $22 a share. Any high-volume move below $22 a share will then put $20.45 into range for shares of BSFT.

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

-- Written by Roberto Pedone in Madison, Wis.


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 Madison, Wis., 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
BSFT $27.86 0.00%
FSLR $60.99 0.00%
GMCR $90.05 0.00%
SODA $12.77 0.00%
TRIP $59.90 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