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Are you looking for investment opportunities in the technology sector during earnings season? We researched companies with strong upward momentum, and that are expected to report earnings next week.

We began by screening the technology sector for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum. Could there be a possible fundamental reason for this rally?

In addition to technical analysis, positive fundamental trends are an encouraging sign for investors. From our list, we analyzed the financials of the companies to look for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue.

These stocks are seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

Our final list consisted of 4 stocks that met the criteria.

The List

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks are poised to outperform? Use this list as a starting point for your own analysis.

1. Brocade Communications Systems, Inc. (NASDAQ:BRCD): Supplies networking equipment comprising end-to-end Internet protocol (IP)-based Ethernet and storage area networking solutions.

  • Market cap at $2.6B, most recent closing price at $5.71.
  • Revenue grew by 5.07% during the most recent quarter ($578.36M vs. $550.47M y/y). Accounts receivable grew by -6.42% during the same time period ($233.14M vs. $249.14M y/y). Receivables, as a percentage of current assets, decreased from 29.51% to 20.18% during the most recent quarter (comparing 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).
  • The company is expected to report earnings on February 14th, 2013.
  • The stock is currently trading 1% above its 20-day moving average, 3% above its 50-day moving average, and 6% above its 200-day moving average.

2. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol based networking and other products related to the communications and information technology industry worldwide.

  • Market cap at $112.5B, most recent closing price at $21.19.
  • Revenue grew by 5.51% during the most recent quarter ($11,876M vs. $11,256M y/y). Accounts receivable grew by 0.89% during the same time period ($7,668M vs. $7,600M y/y). Receivables, as a percentage of current assets, decreased from 13.27% to 13.24% during the most recent quarter (comparing 13 weeks ending 2012-10-27 to 13 weeks ending 2011-10-29).
  • The company is expected to report earnings on February 13th, 2013.
  • The stock is currently trading 1% above its 20-day moving average, 5% above its 50-day moving average, and 16% above its 200-day moving average.

3. Syntel, Inc. (NASDAQ:SYNT): Provides information technology (IT) and knowledge process outsourcing (KPO) services worldwide.

  • Market cap at $2.43B, most recent closing price at $57.90.
  • Revenue grew by 11.2% during the most recent quarter ($186.41M vs. $167.63M y/y). Accounts receivable grew by 7.9% during the same time period ($89.96M vs. $83.37M y/y). Receivables, as a percentage of current assets, decreased from 18.25% to 15.31% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • The company is expected to report earnings on February 11th, 2013.
  • The stock is currently trading 1% above its 20-day moving average, 3% above its 50-day moving average, and 1% above its 200-day moving average.

4. ValueClick, Inc. (VCLK): Provides performance-based online advertising campaigns and programs primarily in the United States and the United Kingdom.

  • Market cap at $1.52B, most recent closing price at $20.25.
  • Revenue grew by 25.77% during the most recent quarter ($160.88M vs. $127.92M y/y). Accounts receivable grew by 21.58% during the same time period ($140.49M vs. $115.55M y/y). Receivables, as a percentage of current assets, decreased from 50.48% to 49.94% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • The company is expected to report earnings on February 13th, 2013.
  • The stock is currently trading 2% above its 20-day moving average, 5% above its 50-day moving average, and 17% above its 200-day moving average.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Rallying Technology Stocks Reporting Earnings In February With Encouraging Sales Trends