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

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 $8.1 million.
  • ACXM has traded 96.3581999999999965211827657185494899749755859375 options contracts today.
  • ACXM is making at least a new 3-day high.
  • ACXM has a PE ratio of 1117.
  • ACXM is mentioned 1.06 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 1117. 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 374,900 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 1.15 and a short float of 7.1% with 13.02 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Thursday.

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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 also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ACXM's debt-to-equity ratio is very low at 0.29 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 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for ACXIOM CORP is rather high; currently it is at 52.56%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.63% is in-line with the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the IT Services industry. The net income has significantly decreased by 133.9% when compared to the same quarter one year ago, falling from $4.16 million to -$1.41 million.
  • Net operating cash flow has decreased to $37.58 million or 12.20% 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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