This Day On The Street
Continue to site right-arrow
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 Stocks Set to Soar on Bullish Earnings

Stocks in this article: TSLA RDN UBNT BNNY SLCA

Tesla Motors

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

Get Adobe Flash player

My first earnings short-squeeze trade idea is electric car maker Tesla Motors ( TSLA), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Tesla Motors to report revenue of $534.54 million on earnings of 11 cents per share.

>>5 Rocket Stocks to Buy in November

Just recently, Craig Irwin of Wedbush Securities upgraded shares of Tesla to outperform from neutral and raised his price target to $240 from $180 per share. "Tesla's not positioned to disappoint anytime soon. These guys are going to keep executing, keep making expectations for the foreseeable future," he said on CNBC's "Fast Money."

The current short interest as a percentage of the float Tesla Motors is extremely high at 26.1%. That means that out of the 77.88 million shares in the tradable float, 20.81 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of TSLA could easily explode to the upside post-earnings as the bears rush to cover some of their bets.

From a technical perspective, TSLA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $153 to its intraday high of $181.43 a share. During that move, shares of TSLA have been making mostly higher lows and higher highs, which is bullish technical price action.

If you're bullish on TSLA, then I would wait until after its report and look for long-biased trades if this stock manages to take out Tuesday's high of $181.43 to some more key overhead resistance at $185 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 10.73 million shares. If we get that move, then TSLA will set up to re-test or possibly take out its next major overhead resistance levels at $188.79 to its all-time high at $194.50 a share. Any high-volume move above those levels will then give TSLA a chance to trend north of $200 a share.

I would simply avoid TSLA 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 $173.53 (or below Tuesday's intraday low if lower) with high volume. If we get that move, then TSLA will set up to re-test or possibly take out its next major support areas at $160 to $153 a share. Any high-volume move below $153 will then give TSLA a chance to trend well below $150 a share.

2 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!


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

  • 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