ACI Worldwide Inc (NASDAQ:ACIW) – A High Growth Momentum Stock with Strong Technical Setup

High growth momentum investing focuses on identifying companies with accelerating earnings, revenue growth, and positive analyst revisions. These stocks often exhibit strong price momentum, making them attractive to investors looking for rapid appreciation. ACI Worldwide Inc (NASDAQ:ACIW) stands out as a candidate that meets both high growth momentum and technical breakout criteria.

Why ACI Worldwide Fits High Growth Momentum Criteria

ACI Worldwide has demonstrated strong earnings and revenue growth, key factors in high growth momentum investing. Here’s why the stock scores well:

• EPS Growth (TTM): 72.97% year-over-year, indicating strong profitability expansion.
• Free Cash Flow Growth: 139.94% over the past year, reflecting robust cash generation.
• Positive Earnings Surprises: The company has beaten EPS estimates in all of the last four quarters, with an average beat of 130.21%.
• Analyst Revisions: EPS estimates for the next year have been revised upward by 17.29%, signaling improving sentiment.
• Profit Margin Expansion: Quarterly profit margins have expanded from 8.27% two quarters ago to 21.75% in the most recent quarter.

While recent quarterly EPS growth showed a decline (-16.96%), the company’s long-term growth trajectory remains strong, supported by accelerating revenue trends and improving profitability.

Technical Setup Overview

ACI Worldwide’s technical profile suggests a favorable setup for potential breakout traders:

• Technical Rating (TA): 7/10 – The stock is in a positive short-term trend while the long-term trend remains neutral.
• Relative Strength: Outperforming 93% of stocks in the past year.
• Support Levels: Key support zones exist between $51.46-$52.74 and $50.17-$50.56, providing downside protection.
• Resistance Levels: The stock faces resistance near $57.35 and $58.64-$59.21, which could serve as upside targets.

The stock has been trading in a wide range ($47.00-$55.87) over the past month and is currently near the higher end, suggesting potential for a breakout if momentum continues.

Read the full technical analysis report here.

Conclusion

ACI Worldwide Inc (NASDAQ:ACIW) presents an interesting opportunity for investors seeking high growth momentum combined with a solid technical setup. The company’s strong earnings growth, cash flow expansion, and upward analyst revisions align well with momentum strategies, while its technical structure suggests a potential breakout opportunity.

For more high growth momentum stocks with strong technical setups, explore additional results here.