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Shares of Unisys Corporation (UIS - Analyst Report) hit a 52-week high of $35.76 during yesterday’s trading session. However, the stock closed the session a notch lower at $35.74. The average trading volume aggregated 7, 89,467 shares.

Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive it upward. The stock is currently trading at a forward P/E of 10.4x. Unisys remains bullish regarding strong long-term growth from its Technology segment with new product offerings.

Growth Drivers

Unisys reported fourth-quarter 2013 net income of $117.4 million or $2.37 per share compared with $81.8 million or $1.67 per share in the year-earlier quarter. The strong year-over-year performance was primarily attributable to an increase in revenues in both of its operating segments and a decline in operating expenses.

Unisys is investing heavily on developing a team dedicated to pursuing growth opportunities for application-managed services both for its existing and new clients. Unisys has also been restructuring its business to improve profitability. This includes slashing jobs to reduce costs, selling non-core businesses and revamping its sales strategy, while investing in a few higher-growth areas such as outsourcing.

The company is currently concentrating on business opportunities in fewer, more profitable markets in the information technology (IT) marketplace. To drive future growth, Unisys is focusing its resources and investments in four targeted, high potential market areas, including security (IT security and physical security); data center transformation and outsourcing services; end-user outsourcing and support services; and applications modernization and outsourcing services.

Estimate Revisions

Over the last 7 days, earnings estimates revisions remained static for 2014. Although there is a lacuna of estimate revisions, we envision an uptrend for the stock backed by its strong growth potential.

Other Stocks to Consider

Stocks that look promising and are worth a look now include Acxiom Corporation (ACXM - Analyst Report), Amdocs Limited (DOX - Analyst Report) and Barracuda Networks, Inc. (CUDA - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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