At US$26.15, Is It Time To Put ACI Worldwide, Inc. (NASDAQ:ACIW) On Your Watch List?

ACI Worldwide, Inc. (NASDAQ:ACIW), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine ACI Worldwide’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for ACI Worldwide

What Is ACI Worldwide Worth?

Good news, investors! ACI Worldwide is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $35.59, but it is currently trading at US$26.15 on the share market, meaning that there is still an opportunity to buy now. However, given that ACI Worldwide’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of ACI Worldwide look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 3.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for ACI Worldwide, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ACIW is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ACIW for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ACIW. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you'd like to know more about ACI Worldwide as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for ACI Worldwide you should be mindful of and 1 of these is concerning.

If you are no longer interested in ACI Worldwide, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.