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

I would simply avoid GME or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $53.64 a share to its 50-day at $52.83 a share high volume. If we get that move, then GME will set up to re-test or possibly take out its next major support levels at $47 to $42.50 a share, or even its 200-day at $40.46 a share.

Best Buy

My final earnings short-squeeze play is multichannel consumer electronics retailer Best Buy (BBY), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Best Buy to report revenue of $9.36 billion on earnings of 11 cents per share.

Just recently, UBS upgraded shares of Best Buy citing a cost-cutting program that is running parallel to Best Buy's other initiates. Jefferies analyst Daniel Binder also likes the stock, and he just upped his price target by $12 a share to $52 per share. Binder said after big cost cuts and investments in service and its supply chain, he expects a dramatic improvement in the company's performance.

The current short interest as a percentage of the float for Best Buy is notable at 6.8%. That means that out of the 278.45 million shares in the tradable float, 18.60 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a sharp short-covering rally post-earnings if Best Buy can deliver the earnings news the bulls are looking for.

From a technical perspective, BBY 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 six months, with shares soaring higher from its low of $25.66 to its recent high of $44.66 a share. During that uptrend, shares of BBY have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BBY within range of triggering a big breakout trade post-earnings.

6 of 7

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 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

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