Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Acxiom Corporation ( ACXM) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Acxiom Corporation 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 $23.3 million.
- ACXM has traded 322,275 shares today.
- ACXM traded in a range 235.5% of the normal price range with a price range of $2.02.
- ACXM traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in ACXM with the Ticky from Trade-Ideas. See the FREE profile for ACXM NOW at Trade-Ideas 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. The company operates in three segments: Marketing and Data Services, IT Infrastructure Management, and Other Services. The stock currently has a dividend yield of 3.5%. ACXM has a PE ratio of 35.7. Currently there are 2 analysts that rate Acxiom Corporation a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Acxiom Corporation has been 373,900 shares per day over the past 30 days. Acxiom has a market cap of $2.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.52 and a short float of 3.3% with 2.86 days to cover. Shares are up 53.2% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Acxiom Corporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ACXM has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 1002.46% to $16.85 million when compared to the same quarter last year. In addition, ACXIOM CORP has also vastly surpassed the industry average cash flow growth rate of -22.69%.
- ACXIOM CORP reported flat earnings per share in the most recent quarter. 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 increased its bottom line by earning $0.75 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.76 versus $0.75).
- Compared to its closing price of one year ago, ACXM's share price has jumped by 53.85%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Despite the weak revenue results, ACXM has outperformed against the industry average of 15.3%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- You can view the full Acxiom Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.