Why the high growth investor may take a look at ACI WORLDWIDE INC (NASDAQ:ACIW).

ACI WORLDWIDE INC (NASDAQ:ACIW) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:ACIW.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall ACIW gets a technical rating of 7 out of 10. Although ACIW has been one of the better performers in the overall market, we have a mixed picture in the medium term time frame. But recently some decent action can be observed again.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• Looking at the yearly performance, ACIW did better than 93% of all other stocks. We also observe that the gains produced by ACIW over the past year are nicely spread over this period.
• ACIW is part of the Software industry. There are 281 other stocks in this industry. ACIW outperforms 85% of them.
• 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 47.00 - 57.49 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

Looking at the Setup

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.

Besides having an excellent technical rating, ACIW also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 52.69, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

What matters for high growth investors.

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. ACIW boasts a 6 out of 10:

Explosive Earnings Growth

• The 1-year EPS growth of ACIW (72.97%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• Over the past 3 months, analysts have adjusted their EPS Estimate for ACIW with a 10.0K% change. This highlights the evolving outlook on the company's EPS potential.
• ACIW has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Profitability & Financial Strength

• ACIW has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With a favorable trend in its profit margin over the past year, ACIW demonstrates its ability to enhance profitability through efficient operations.
• The free cash flow (FCF) of ACIW has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• ACIW demonstrates a strong Return on Equity(ROE) of 14.26%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. ACI WORLDWIDE INC shows promising potential for continued success.
• ACIW has a Debt/Equity ratio of 0.62, indicating a balanced approach to financing growth.

Market Strength

• ACIW has achieved an impressive Relative Strength (RS) rating of 93.2, showcasing its ability to outperform the broader market.

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

Disclaimer

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.