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 You Should Love


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

Get Adobe Flash player

Another earnings short-squeeze prospect is cloud-based, on-demand software solutions provider E2open ( EOPN), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect E2open to report revenue of $15.75 million on a loss of 20 cents per share.

The current short interest as a percentage of the float for E2open is very high at 15.4%. That means that out of the 10 million shares in the tradable float, 1.48 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 11.2%, or by about 149,000 shares. If the bears are caught pressing their bets into a bullish quarter, then shares of EOPN could explode higher post-earnings as the shorts rush to cover some of those bets.

>>5 Rocket Stocks to Buy for Earnings Season

From a technical perspective, EOPN 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 two months, with shares soaring higher from its low of $12.27 to its recent high of $18.22 a share. During that uptrend, shares of EOPN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EOPN within range of triggering a major breakout trade post-earnings.

If you're bullish on EOPN, 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 at $18.22 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 185,838 shares. If that breakout triggers, then EOPN will set up to re-test or possibly take out its next major overhead resistance levels at $20.85 to its all-time high at $22 a share. Any high-volume move above those levels will then give EOPN a chance to tag $25 a share.

I would avoid EOPN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 200-day at $16.57 a share and its 50-day at $15.44 a share with high volume. If we get that move, then EOPN will set up to re-test or possibly take out its next major support levels at $15 to $14 a share.
5 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
FDO $0.00 0.00%
EOPN $8.59 0.00%
LEDS $0.32 0.00%
OZRK $38.21 0.00%
PSMT $75.70 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