Evaluating ACI WORLDWIDE INC (NASDAQ:ACIW) for high Growth Investment Opportunities.

Our stock screener has spotted ACI WORLDWIDE INC (NASDAQ:ACIW) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:ACIW.

In-Depth Technical Analysis of ACIW

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, ACIW scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, ACIW has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that ACIW is one of the better performing stocks in the market, outperforming 94% of all stocks. On top of that, ACIW also shows a nice and consistent pattern of rising prices.
• ACIW is one of the better performing stocks in the Software industry, it outperforms 91% of 279 stocks in the same industry.
• ACIW is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so ACIW slightly outperforms the market at the moment.
• In the last month ACIW has a been trading in the 50.71 - 58.14 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of ACIW

How do we evaluate the setup for ACIW?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. ACIW currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

ACIW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 54.01, a Stop Loss order could be placed below this zone.

Exploring ACIW's Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. ACIW scores a 6 out of 10:

Explosive Earnings Growth

• ACIW has experienced 72.97% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• Over the past 3 months, analysts have adjusted their EPS Estimate for ACIW with a 11.0K% change. This highlights the evolving outlook on the company's EPS potential.
• ACIW has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Profitability & Financial Strength

• ACIW has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With positive growth in its profit margin over the past year, ACIW showcases its ability to improve profitability.
• ACIW has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• With a favorable Return on Equity (ROE) of 14.26%, ACIW demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• A Debt/Equity ratio of 0.62 indicates that ACIW is leveraging debt effectively without excessive risk.

Strong Market Performance

• The Relative Strength (RS) of ACIW has been consistently solid, with a current 94.82 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.