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4 Earnings Stocks Winners Breaking Out

Companies / Corporate Earnings Nov 08, 2017 - 03:39 PM GMT

By: Harry_Boxer

Companies

Here are four stocks to watch riding positive earnings announcements.

Health Insurance Innovations, Inc. (HIIQ) broke out above a key resistance level on Tuesday, up $1.50, or 6.7%, closing at $23.70. The move above the $23 resistance level, which came on light volume of 945,700 shares, saw price cross over to the positive side of the 50-day moving average for the first time in two months. The stock is bouncing back from a steep decline in September, and has been climbing in a rising triangle pattern since its bottom at $12.65 on September 28. A week ago, the Web-based health coverage provider topped Wall Street's expectations in its earnings report. Next targets: $27.75 and $33.


Lannett Company, Inc. (LCI) shot up and out of a bull wedge consolidation, gaining 15%, or $3.25, to close at $24.43 on very heavy volume of 2.1 million shares traded Tuesday. The recreational vehicle components manufacturer has thrived in the booming RV market, reporting unusually strong sales in its earnings announcement the day before. Price hit the resistance level at $25, which mirrors the October 16 high and forms a double top pattern. If the stock can close above that top, next targets will be $28 and $33. Short interest of about 23 times its average volume could fuel the move as shorts cover on a rally.

Nektar Therapeutics (NKTR) popped 10.5%, or $2.56, on Tuesday, closing at $26.84 on heavy volume of 2.8 million shares traded. The stock's elevated volume -- the highest since late July -- came as the market anticipated the company's earnings announcement after market close on Tuesday. In fact, the annoucement topped Wall Street's third-quarter forecasts, and the stock is rallying today. It has now risen to the top of a 6-year rising price channel, and a breakout through the channel ceiling may cause price to accelerate into the mid-$30s. Short interest of about 12 times its average volume could fuel the move as shorts cover on a rally.

U.S. Silica Holdings, Inc. (SLCA) rallied 9.6% to close at $34.55 Tuesday on volume of 6.6 million shares, nearly 3x its average daily volume. With a positive earnings surprise announced by the fracking sand supplier on Monday, the stock opened at $33.49 on Tuesday with a breakaway gap up that was $1.97 above Monday's close. The stock is rebounding from a 58% loss in value that occurred between February and mid-August, when it reached a low of $24.26. Next targets: $38 and $42.

See Harry's video chart analysis on these stocks.

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Good Trading!

Harry

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