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Is ACI Worldwide (ACIW) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ACI Worldwide (ACIW - Free Report) . ACIW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.28 right now. For comparison, its industry sports an average P/E of 22.83. Over the past year, ACIW's Forward P/E has been as high as 11.73 and as low as 9.09, with a median of 10.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACIW has a P/S ratio of 1.67. This compares to its industry's average P/S of 3.67.
Finally, investors should note that ACIW has a P/CF ratio of 8.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.14. Over the past year, ACIW's P/CF has been as high as 17.15 and as low as 7.91, with a median of 12.52.
DecisionPoint Systems (DPSI - Free Report) may be another strong Computer - Software stock to add to your shortlist. DPSI is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, DecisionPoint Systems has a P/B ratio of 3.15 while its industry's price-to-book ratio sits at 7.73. For DPSI, this valuation metric has been as high as 5.56, as low as 1.65, with a median of 2.39 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ACI Worldwide and DecisionPoint Systems are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACIW and DPSI feels like a great value stock at the moment.
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Is ACI Worldwide (ACIW) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ACI Worldwide (ACIW - Free Report) . ACIW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.28 right now. For comparison, its industry sports an average P/E of 22.83. Over the past year, ACIW's Forward P/E has been as high as 11.73 and as low as 9.09, with a median of 10.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACIW has a P/S ratio of 1.67. This compares to its industry's average P/S of 3.67.
Finally, investors should note that ACIW has a P/CF ratio of 8.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.14. Over the past year, ACIW's P/CF has been as high as 17.15 and as low as 7.91, with a median of 12.52.
DecisionPoint Systems (DPSI - Free Report) may be another strong Computer - Software stock to add to your shortlist. DPSI is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, DecisionPoint Systems has a P/B ratio of 3.15 while its industry's price-to-book ratio sits at 7.73. For DPSI, this valuation metric has been as high as 5.56, as low as 1.65, with a median of 2.39 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ACI Worldwide and DecisionPoint Systems are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACIW and DPSI feels like a great value stock at the moment.