ACIW Gains 15% in 3 Months: How Should Investors Play the Stock?

Core Viewpoint - ACI Worldwide (ACIW) has shown significant stock performance, gaining 15% over the past three months, outperforming both the Zacks Computer and Technology Sector and the S&P 500 index [1] Group 1: Company Performance - ACIW's revenues have been consistently growing, particularly in the biller segment, which saw a 13% year-over-year increase in the second quarter of 2024 [3] - The bank segment revenues grew by 22% year-over-year during the same period [3] - ACIW has secured major contracts internationally, enhancing its payment solutions and infrastructure [2] Group 2: Market Position and Competition - ACIW is benefiting from international expansion, especially in the Asia-Pacific market, where competitors are withdrawing support, creating opportunities for ACIW [2] - The company faces intense competition in the electronic payments software space from various players, including Fiserv, NCR Voyix, and Jack Henry & Associates [5][6] - Ongoing macroeconomic challenges, such as inflation and high interest rates, may impact ACIW's growth prospects, although the company is currently navigating these issues with its innovative product portfolio [6] Group 3: Financial Outlook - ACIW expects its 2024 revenues to be between $1.557 billion and$1.591 billion, with a Zacks Consensus Estimate of $1.58 billion, indicating an 8.6% year-over-year growth [6] - The recent increase in share price has led to elevated valuation levels, with a Zacks Value score of C, suggesting that the stock may be overvalued at present [7]