If you're looking for stocks that are setting up in a base ahead of earnings, here's one that fits the bill: Ciena. It's expected to report on Mar. 7 and is trading approximately 12% under a 78.38 entry. The chart pattern is a second-stage consolidation. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
Be aware that buying just before a stock reports can be risky, since disappointing numbers could send it sharply lower. You can reduce your risk by waiting to see the actual numbers and the market's reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
See How IBD Helps You Make More Money In Stocks
Will Ciena's Rising Earnings Growth Continue?
Regarding fundamentals, the telecom firm has posted two quarters of rising earnings growth. Revenue growth has also increased over the same time frame.
Analysts expect earnings growth of -13% for the quarter, and 5% growth for the full year. Annual growth estimates were recently revised lower.
Ciena stock has a 96 Composite Rating and earns the No. 2 rank among its peers in the Telecom-Fiber Optics industry group. Clearfield is the top-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
