Earnings season is building momentum, and it is not unusual to see firms building up share value ahead of the release of their quarterly financial reports.  Companies that see their earnings outlook improve over the course of a quarter tend to experience share value appreciation ahead of earnings because there is a strong chance for them to surpass investor expectations. 

One can see the earnings sentiment for a company improve by paying attention to earnings estimates being revised by analysts on Wall Street.  The Zacks Rank conveniently harnesses the power of earnings estimate revisions, and it is a proven metric for showing which companies are poised to top expectations in the short term.

If companies beat EPS (earnings per share) expectations, then their stock price stands to surge even more after earnings results are revealed.  Microsoft (MSFT) stock has been reaping the benefits that come with surpassing these expectations, and we’ve found two other tech candidates who seem poised to do the same when they release their Q2 earnings results in early August. 

Ceragon Networks Ltd-(CRNT Quick QuoteCRNT - Free Report)

Ceragon Networks engages in providing high-capacity wireless backhaul solutions for cellular and wireless operators, enterprises, and government organizations.  They generate revenues from Europe, Africa, North America, Asia, and other geographic locations.  Ceragon is a Zacks Rank #2 (Buy) and it has a market cap of just $182.5 million.

CRNT shares gained 1.7% today, and the stock price has climbed up by a whopping 41.5% in July.  Between 2014 and 2015, the company has done well to lower costs in order to promote better gross margins.  Compared to expected earnings this year, 2017’s earnings are projected see growth of 200%.  Ceragon has a good track record, and it has met or beaten our EPS consensus estimate in each of the last three quarters.  Over this time span, the company has surpassed earnings expectations by an average of about 55% per quarter.  Ceragon is expected to report the results of its second quarter in the beginning of August.

Seagate Technology Plc-(STX Quick QuoteSTX - Free Report)

Seagate specializes in offering an array of data storage products.  It has a portfolio of hard disc drives, solid state drives, and solid state hybrid drives.  Their products are useful to every day users and corporate clients.  Seagate has a market cap of $9 billion, and it doles out an incredible 8.4% dividend.  The company’s cash flows also suggest that it can sustain the dividend.  In fact, the company raised its cash payout per share less than a year ago.  Seagate is a Zacks Rank #2 (Buy).

STX stock has picked up 26% in July alone, and the company is well-positioned to surge even higher.  The company looks like a bargain, as it has a forward PE of just 12.71.  It has also picked up momentum on the EPS front for the current quarter.  Over the last 60 days, 17 analysts have revised their quarterly earnings estimates.  All of those revisions were made in the upwards direction, and this has really helped to push EPS expectations higher for Seagate.  A month ago, our EPS consensus estimated earnings of $0.13 per share.  Now, the estimate calls for earnings of $0.45 when it reports its earnings in early August.  Seagate recently unveiled a new set of 10TB storage drives, and this stands to put it ahead of the competition going forward.

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