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 Hated Earnings Stocks You Should Love

Stocks in this article: MU GBX KMX SCHN PERY

Greenbrier

Another potential earnings short-squeeze trade idea is railroad freight car equipment player Greenbrier (GBX), which is set to release its numbers on Thursday before the market open. Wall Street analysts, on average, expect Greenbrier Companies to report revenue $508.69 million on earnings of 60 cents per share.

>>3 Stocks in Breakout Territory With Big Volume

The current short interest as a percentage of the float for Greenbrier Companies is extremely high at 16.2%. That means that out of the 22.79 million shares in the tradable float, 3.71 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.1%, or by about 145,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of GBX could easily spike sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, GBX is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways over the last month, with shares moving between $43.05 on the downside and $47.33 on the upside. Any high-volume move above the upper-end of its recent range post-earnings could trigger a big breakout trade for shares of GBX.

If you're in the bull camp on GBX, 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 $47.20 a share to its 52-week high at $47.33 a share (or Wednesday's intraday high if greater) with high volume. Look for volume on that move that hits near or above its three-month average action of 479,269 shares. If that breakout materializes, then GBX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $65 a share.

I would simply avoid GBX or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $43.05 a share to its 50-day moving average of $40.92 a share with high volume. If we get that action, then GBX will set up to re-test or possibly take out its next major support levels at $36 to $34 a share, or even $32 a share.

3 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 18,040.92 -12.79 -0.07%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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