This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Earnings Stocks Everyone Hates -- but You Should Love

Stocks in this article: DGIT ACAD FIO SCTY FSLR

SolarCity

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

Get Adobe Flash player

One potential earnings short-squeeze candidate is solar energy player SolarCity ( SCTY), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect SolarCity to report revenue of $27.44 million on a loss of 38 cents per share.

>>4 Big Stocks on Traders' Radars

The current short interest as a percentage of the float for SolarCity is pretty high at 15.9%. That means that out of the 31.84 million shares in the tradable float, 4.61 million shares are sold short by the bears. This is a high short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of SCTY could explode higher post-earnings as the bears rush to cover some of their short bets.

From a technical perspective, SCTY is currently trending above its 50-day moving average, which is bullish. This stock is ripping higher today right off it 50-day with strong upside volume. This move has started to push shares of SCTY into breakout territory, since the stock has cleared some near-term overhead resistance at $44.98 a share. That move is quickly pushing shares of SCTY within range of triggering another major breakout trade post-earnings.

If you're bullish on SCTY, 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 $46 to $50 a share and then once it clears its all-time high at $52.77 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 2.64 million shares. If that breakout hits, then SCTY will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65 a share.

I would avoid SCTY or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $39.90 a share and then below more near-term support at $38.80 share with high volume. If we get that move, then SCTY will set up to re-test or possibly take out its next major support levels at $37.30 a share to $32.66 a share.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs