If you're looking for stocks that are setting up in a base ahead of earnings, here's one that fits the bill: Amdocs stock. It's expected to report on Aug. 3 and is trading about 3% shy of an 88.28 buy point. The entry is based on a second-stage flat base.
Understand that buying just before a stock reports can be risky. You don't know how the stock will report and how the market will react, and you don't have enough time to build a profit cushion. You can minimize your exposure by waiting to see the actual numbers and the market's reaction. You can also use an options strategy to limit your potential downside.
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Top and bottom line growth moved higher last quarter. Earnings were up 36%, compared to 3% in the prior report. Revenue increased from 2% to 9%.
Analysts are looking for earnings-per-share growth of -5% for the quarter, and a 10% gain for the full year.
Amdocs stock has a 92 Composite Rating and earns the No. 11 rank among its peers in the Computer-Technical Services industry group. EPlus, RCM Technologies and CDW are among the top 5 highly rated stocks within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
