Today's Strong And Under The Radar Stock Is Acxiom (ACXM) - TheStreet

Trade-Ideas LLC identified

Acxiom

(

ACXM

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

  • ACXM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • ACXM has traded 109.0150000000000005684341886080801486968994140625 options contracts today.
  • ACXM is making at least a new 3-day high.
  • ACXM has a PE ratio of 744.
  • ACXM is mentioned 0.61 times per day on StockTwits.
  • ACXM has not yet been mentioned on StockTwits today.
  • ACXM is currently in the upper 20% of its 1-year range.
  • ACXM is in the upper 35% of its 20-day range.
  • ACXM is in the upper 45% of its 5-day range.
  • ACXM 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 ACXM:

Acxiom Corporation operates as an enterprise data, analytics, and software-as-a-service company in the United States, Europe, South America, and the Asia-Pacific. It operates through two segments, Marketing and Data Services, and IT Infrastructure Management. ACXM has a PE ratio of 744. Currently there are 2 analysts that rate Acxiom a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Acxiom has been 313,100 shares per day over the past 30 days. Acxiom has a market cap of $1.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.16 and a short float of 7.9% with 25.51 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Acxiom as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ACXM's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ACXM has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
  • ACXIOM CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACXIOM CORP swung to a loss, reporting -$0.35 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus -$0.35).
  • 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 IT Services industry and the overall market, ACXIOM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $19.42 million or 24.94% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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