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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 in April.

Building the Stock List

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 2 stocks.

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. Advent Software, Inc. (ADVS): Provides software and services that automate work flows and data across investment management organizations, as well as the information flows between an investment management organization and external parties.

  • Market cap at $1.36B, most recent closing price at $27.48.
  • Revenue grew by 6.65% during the most recent quarter ($92.02M vs. $86.28M y/y). Accounts receivable grew by -1.69% during the same time period ($61.07M vs. $62.12M y/y). Receivables, as a percentage of current assets, decreased from 26.15% to 22.18% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • The stock is currently trading 2% above its 20-day moving average, 2% above its 50-day moving average, and 12% above its 200-day moving average.
  • The company is expected to report earnings on April 29th, 2013.

2. Atlantic Tele-Network, Inc. (ATNI): Provides telecommunications services to rural, niche, and other under-served markets and geographies in the United States, Bermuda, and the Caribbean.

  • Market cap at $768.35M, most recent closing price at $50.46
  • Revenue grew by 0.79% during the most recent quarter ($184.38M vs. $182.94M y/y). Accounts receivable grew by -11.62% during the same time period ($73.09M vs. $82.7M y/y). Receivables, as a percentage of current assets, decreased from 44.97% to 28.53% during the most recent quarter (comparing 3 months ending 2012-12-31 to 3 months ending 2011-12-31).
  • The stock is currently trading 5% above its 20-day moving average, 8% above its 50-day moving average, and 24% above its 200-day moving average.
  • The company is expected to report earnings on April 29th, 2013.

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

Source: 2 Rallying Tech Small Caps Reporting Earnings In April With Encouraging Sales Trends