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 Hated Earnings Stocks You Should Love

TearLab

Another potential earnings short-squeeze trade idea is in-vitro diagnostic player TearLab (TEAR), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect TearLab to report revenue of $4.21 million on a loss of 14 cents per share.

>>5 Stocks With Big Insider Buying

The current short interest as a percentage of the float for TearLab is extremely high at 25.6%. That means that out of the 29.18 million shares in the tradable float, 6.95 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.6%, or by about 548,000 shares. If the bears are caught pressing their bets into a bullish quarter, then shares of TEAR could rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, TEAR is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending for the last three months and change, with shares moving lower from its high of $15.18 to its recent low of $9.26 a share. During that move, shares of TEAR have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of TEAR have now started to spike higher and flirt with its 50-day moving average. That move is starting to push TEAR within range of triggering a breakout trade above a key downtrend line post-earnings.

If you're in the bull camp on TEAR, 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 Monday's high of $11.64 to $12.39 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 562,768 shares. If that breakout triggers, then TEAR will set up to re-test or possibly take out its next major overhead resistance levels at $13.80 to its 52-week high at $15.18 a share.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

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