ACI Worldwide (ACIW) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified ACI Worldwide (ACIW) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

ACI Worldwide

(

ACIW

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified ACI Worldwide as such a stock due to the following factors:

  • ACIW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.8 million.
  • ACIW has traded 39.79099999999999681676854379475116729736328125 options contracts today.
  • ACIW is making at least a new 3-day high.
  • ACIW has a PE ratio of 32.
  • ACIW is mentioned 0.42 times per day on StockTwits.
  • ACIW has not yet been mentioned on StockTwits today.
  • ACIW is currently in the upper 20% of its 1-year range.
  • ACIW is in the upper 35% of its 20-day range.
  • ACIW is in the upper 45% of its 5-day range.
  • ACIW is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ACIW:

ACI Worldwide, Inc. develops, markets, installs, and supports software products and services for facilitating electronic payments worldwide. ACIW has a PE ratio of 32. Currently there are 2 analysts that rate ACI Worldwide a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for ACI Worldwide has been 425,900 shares per day over the past 30 days. ACI Worldwide has a market cap of $2.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.00 and a short float of 4.1% with 13.04 days to cover. Shares are up 19.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ACI Worldwide as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 18.8%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • ACI WORLDWIDE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACI WORLDWIDE INC increased its bottom line by earning $0.59 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.59).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 140.7% when compared to the same quarter one year prior, rising from $11.24 million to $27.05 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, ACI WORLDWIDE INC's return on equity exceeds that of both the industry average and the S&P 500.

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