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

To create the list below 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.

The List

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

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. Cree, Inc. (NASDAQ:CREE): Develops and manufactures light emitting diode (LED) products, silicon carbide (SiC) and gallium nitride (GaN) material products, and power and radio frequency (RF) products.

  • Market cap at $6.15B, most recent closing price at $52.71.
  • Revenue grew by 13.87% during the most recent quarter ($346.29M vs. $304.12M y/y). Accounts receivable grew by -8.63% during the same time period ($144.55M vs. $158.21M y/y). Receivables, as a percentage of current assets, decreased from 14.32% to 11.13% during the most recent quarter (comparing 13 weeks ending 2012-12-30 to 13 weeks ending 2011-12-25).
  • The stock is currently trading 2% above its 20-day moving average, 9% above its 50-day moving average, and 57% above its 200-day moving average.
  • The company is expected to report earnings on April 23rd, 2013.

2. Ellie Mae, Inc. Common Stock (NYSE:ELLI): Provides business automation software for the mortgage origination network in the United States.

  • Market cap at $626.29M, most recent closing price at $23.95.
  • Revenue grew by 59.52% during the most recent quarter ($29.91M vs. $18.75M y/y). Accounts receivable grew by 37.47% during the same time period ($10.75M vs. $7.82M y/y). Receivables, as a percentage of current assets, decreased from 22.43% to 14.39% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • The stock is currently trading 4% above its 20-day moving average, 11% above its 50-day moving average, and 2% above its 200-day moving average.
  • The company is expected to report earnings on April 29th 2013.

3. Premiere Global Services, Inc. (NYSE:PGI): Provides virtual meetings solutions.

  • Market cap at $527.71M, most recent closing price at $11.07.
  • Revenue grew by 5.93% during the most recent quarter ($125.77M vs. $118.73M y/y). Accounts receivable grew by 2.91% during the same time period ($76.42M vs. $74.26M y/y). Receivables, as a percentage of current assets, decreased from 61.23% to 60.9% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • The stock is currently trading 4% above its 20-day moving average, 9% above its 50-day moving average, and 21% above its 200-day moving average.
  • The company is expected to report earnings on April 18th, 2013.

4. AT&T, Inc. (NYSE:T): Provides telecommunication services to consumers, businesses, and other service providers worldwide.

  • Market cap at $208.41B, most recent closing price at $37.95.
  • Revenue grew by 0.23% during the most recent quarter ($32,578M vs. $32,503M y/y). Accounts receivable grew by -4.34% during the same time period ($12,657M vs. $13,231M y/y). Receivables, as a percentage of current assets, decreased from 57.56% to 55.74% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • The stock is currently trading 3% above its 20-day moving average, 6% above its 50-day moving average, and 9% above its 200-day moving average.
  • The company is expected to report earnings on April 23rd, 2013.


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

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Rebecca Lipman, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.