ACI Worldwide (NASDAQ:ACIW) Stock, Quote.Headers.trade-ideas

ACI Worldwide

ACI Worldwide Inc develops, markets, and installs a portfolio of software products focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but majority of the revenue is generated in the United States and EMEA regions.

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ACI Worldwide Inc

ACI Worldwide's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NYSE">ACIW</a>) short percent of float has fallen 4.27% since its last report. The company recently reported that it has 2.28 million shares sold short, which is 3.14% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.4 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>ACI Worldwide Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725556520_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for ACI Worldwide has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing ACI Worldwide's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, ACI Worldwide's peer group average for short interest as a percentage of float is 8.15%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into ACI Worldwide's Recent Short Interest

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.aciworldwide.com%2F&amp;esheet=54116245&amp;newsitemid=20240902486506&amp;lan=en-US&amp;anchor=ACI+Worldwide&amp;index=1&amp;md5=82160c3d80221c77367b1aa87f1b8e9d">ACI Worldwide</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>), an innovator in global payments technology, today announced a collaboration with <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.redhat.com%2Fen&amp;esheet=54116245&amp;newsitemid=20240902486506&amp;lan=en-US&amp;anchor=Red+Hat+Inc.&amp;index=2&amp;md5=750bf2deec5a8e6417d1f6dd647b8908">Red Hat Inc.</a>, the world's leading provider of open source solutions, to make ACI's cloud-native <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.aciworldwide.com%2Fsolutions%2Faci-enterprise-payments-platform&amp;esheet=54116245&amp;newsitemid=20240902486506&amp;lan=en-US&amp;anchor=Enterprise+Payments+Platform&amp;index=3&amp;md5=bcb4790d625c40dec41b0c0e21a2e068">Enterprise Payments Platform</a> available on any cloud infrastructure. With this collaboration, ACI will help customers ease their migration to the cloud to better adapt to the rapidly evolving digital economy and power the next generation of payment services. Using Red Hat OpenShift empowers banks, merchants, and billers with more flexibility and choice on how they wish to deploy their payment services, whether that is on-premises, in the cloud, or as a managed service.
As a Red Hat partner, ACI gains access to Red Hat's open source portfolio of cloud-native artificial intelligence and hybrid cloud platforms. The collaboration will help ACI customers simplify payment operations, allowing them to deploy ACI's enterprise payments platform on any cloud infrastructure and offering enhanced resiliency and scale while reducing operating costs.

ACI Worldwide Partners with Red Hat to Expand Cloud Payment Solutions for Banks and Merchants

Mexipay will utilize ACI's Digital Central Infrastructure solution, part of the award-winning ACI Enterprise Payments Platform, to address the need for enhanced real-time payment services. The platform will be built on the global ISO 20022 standard and will offer additional features such as Request to Pay and Alias management, providing participants with opportunities for new payments and revenue streams.

Contracts

General

ACI Worldwide And Mexipay Have Extended Their Partnership To Enhance Mexico's Real-time Payments Ecosystem

DA Davidson analyst Peter Heckmann maintains ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) with a Buy and raises the price target from $48 to $52.

DA Davidson Maintains Buy on ACI Worldwide, Raises Price Target to $52

Canaccord Genuity analyst Joseph Vafi maintains ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) with a Buy and raises the price target from $40 to $60.

Canaccord Genuity Maintains Buy on ACI Worldwide, Raises Price Target to $60

Needham analyst Mayank Tandon reiterates ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) with a Hold.

Reiteration

Needham Reiterates Hold on ACI Worldwide

WIIM

ACI Worldwide shares are trading higher after the company reported better-than-expected Q2 financial results and raised its FY24 revenue guidance. Also, it issued Q3 revenue guidance above estimates and authorized a $400 million buyback.

During the quarter the Board of Directors authorized the repurchase of&nbsp;$400 million&nbsp;in shares of the company&#39;s common stock, and the company repurchased 1.7 million shares for approximately&nbsp;$57 million&nbsp;in capital in&nbsp;Q2&nbsp;2024.&nbsp;

Buybacks

ACI Worldwide Board Authorized Share Buyback Of $400M Shares In Q2

RAISING 2024&nbsp;GUIDANCE&nbsp;RANGE
For the full year of 2024, we are raising our&nbsp;guidance&nbsp;for both revenue and adjusted EBITDA. We now expect revenue to be in the range of&nbsp;$1.557 billion&nbsp;to&nbsp;$1.591 billion, up from the range of&nbsp;$1.547 billion&nbsp;to&nbsp;$1.581 billion. We now expect adjusted EBITDA to be in the range of&nbsp;$423 million&nbsp;to&nbsp;$438 million, up from the range of&nbsp;$418 million&nbsp;to&nbsp;$433 million. For&nbsp;Q3&nbsp;2024, we expect revenue to be between&nbsp;$400 million&nbsp;and&nbsp;$410 million&nbsp;and adjusted EBITDA of&nbsp;$110 million&nbsp;to&nbsp;$120 million.

Guidance

ACI Worldwide Expects Q3 Revenue Of $400M-$410M Vs $379.675M Est

ACI Worldwide Expects FY24 Revenue Of $1.557B-$1.591B (Prior $1.547B-$1.587B) Vs $1.563B Est

Earnings

Earnings Beats

ACI Worldwide Q2 2024 Adj. EPS $0.47 Beats $0.07 Estimate, Sales $373.479M Beat $349.633M Estimate

ACI Worldwide And Worldpay Extend Strategic Partnership To Enhance Global Payment Solutions

<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.aciworldwide.com%2F&amp;esheet=54084820&amp;newsitemid=20240624045833&amp;lan=en-US&amp;anchor=ACI+Worldwide&amp;index=1&amp;md5=5cbfd6ee6b951fccd1f4b62a092bc46a">ACI Worldwide</a>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>), a global leader in mission-critical,&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.aciworldwide.com%2Fabout-aci&amp;esheet=54084820&amp;newsitemid=20240624045833&amp;lan=en-US&amp;anchor=real-time+payments+software&amp;index=2&amp;md5=448792ffecaf2e31c0810c2b5c0f6f07">real-time payments software</a>, and&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.rs2.com%2F&amp;esheet=54084820&amp;newsitemid=20240624045833&amp;lan=en-US&amp;anchor=RS2&amp;index=3&amp;md5=be65e5743e704efc0261a441f2d11519">RS2</a>, a global payments processor and technology provider, have joined forces to offer a one-stop solution for acquirers and issuers in Brazil. The new offering combines the best of ACI&#39;s and RS2&#39;s acquiring and issuing capabilities, supporting financial institutions, integrated software vendors, payment facilitators, independent sales organizations and payment processors on their digital transformation and modernization journey. It brings the global expertise and technology of both companies to the Brazilian market jointly for the first time.
The combined new cloud-enabled technology platform enables merchants, banks and payment service providers to launch new products and services efficiently using configuration portals that integrate seamlessly to third-party platforms, orchestrating the entire payments ecosystem within the client environment, making the platform secure, reducing operational costs and ultimately increasing revenues. It is supported by&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.aciworldwide.com%2Fsolutions%2Faci-fraud-management-banking&amp;esheet=54084820&amp;newsitemid=20240624045833&amp;lan=en-US&amp;anchor=ACI+Fraud+Management+and+Payments+Intelligence&amp;index=4&amp;md5=f573636d44d638e08cf01e70ca00dcdc">ACI Fraud Management and Payments Intelligence</a>, offering customers real-time enterprise fraud management capabilities, including advanced machine learning, predictive analytics and expertly defined rules to combat the growing threat of fraud. The platform is certified for Brazil and meets all local regulatory requirements, including PCI, and local card scheme standards.
Key advantages of the new acquiring and issuing platform include:
<ul>
<li>Acquiring:&nbsp;The joint solution is available as a software as a service offering for the first time in Latin America, allowing existing financial players to launch a new acquiring business quickly and cost-efficiently. The new offering transforms the merchant experience, manages interchange fee risk and simplifies expansion and global compliance.</li>
<li>Issuing:&nbsp;Issuers and processors profit from one single consolidated issuing platform for all card types, including credit, debit and pre-paid cards, domestic cards, and new payment instruments such as wearables &ndash; enabling them to offer customers better service, more choice and increased fraud protection.</li>
</ul>

ACI Worldwide and RS2 Launch All-in-One Payment Solution for Brazil's Financial Sector

<ul>
<li>50 million instant cross-border payments were processed by STET and ACI Worldwide in the last 12 months</li>
<li>STET&#39;s CSM platform leverages ACI technology to offer interoperability with the other major European instant payment scheme</li>
</ul>

ACI Worldwide And STET Set New Record With 50M Instant Cross-Border Payments

The new approval includes&nbsp;$65 million&nbsp;remaining under the company&#39;s existing share repurchase authorization. Year to date 2024, ACI has repurchased approximately 3 million shares for&nbsp;$106 million.

ACI Worldwide Plans Repurchase Of $400M In Shares Of Its Common Stock

Making a noteworthy insider sell on June 4, James C Hale, III, Director at ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>), is reported in the latest SEC filing.
What Happened: According to a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000935036/000195233324000040//Archives/edgar/data/935036/000195233324000040/0001952333-24-000040-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, III sold 15,000 shares of ACI Worldwide. The total transaction value is $538,910.
In the Wednesday's morning session, ACI Worldwide's shares are currently trading at $35.03, experiencing a up of 0.81%.
<h3>About ACI Worldwide</h3>
ACI Worldwide Inc develops, markets, and installs a portfolio of software products focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but majority of the revenue is generated in the United States and EMEA regions.
<h3>ACI Worldwide's Financial Performance</h3>
Positive Revenue Trend: Examining ACI Worldwide's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.09% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: With a low gross margin of 39.53%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): ACI Worldwide's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.07.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.84.
Financial Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 25.74 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 2.55 is lower than the industry average, implying a discounted valuation for ACI Worldwide's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a lower-than-industry-average EV/EBITDA ratio of 11.57, ACI Worldwide presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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<h3>Illuminating the Importance of Insider Transactions</h3>
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Transaction Codes To Focus On</h3>
Digging into the details of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000935036">Check Out The Full List Of ACI Worldwide's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Insider Transaction: James C Hale, III Sells $538K Worth Of ACI Worldwide Shares

DA Davidson analyst Peter Heckmann maintains ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) with a Buy and raises the price target from $36 to $42.

DA Davidson Maintains Buy on ACI Worldwide, Raises Price Target to $42

Craig-Hallum analyst George Sutton maintains ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) with a Buy and raises the price target from $38 to $40.

Craig-Hallum Maintains Buy on ACI Worldwide, Raises Price Target to $40

Ratings for ACI Worldwide (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACIW#NASDAQ">ACIW</a>) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated ACI Worldwide and provided 12-month price targets. The average target is $39.25, accompanied by a high estimate of $40.00 and a low estimate of $38.00. This upward trend is evident, with the current average reflecting a 4.19% increase from the previous average price target of $37.67.
<img src="https://www.benzinga.com/files/images/story/2024/1714564857_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive ACI Worldwide. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Joseph Vafi</td>
<td>Canaccord Genuity</td>
<td>Maintains</td>
<td>Buy</td>
<td>$40.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Peter Heckmann</td>
<td>DA Davidson</td>
<td>Maintains</td>
<td>Buy</td>
<td>$39.00</td>
<td>$39.00</td>
</tr>
<tr>
<td>Trevor Williams</td>
<td>Jefferies</td>
<td>Announces</td>
<td>Buy</td>
<td>$38.00</td>
<td>-</td>
</tr>
<tr>
<td>Joseph Vafi</td>
<td>Canaccord Genuity</td>
<td>Raises</td>
<td>Buy</td>
<td>$40.00</td>
<td>$34.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ACI Worldwide. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of ACI Worldwide compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for ACI Worldwide's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of ACI Worldwide's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/ACIW/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on ACI Worldwide analyst ratings.</a>
<h2>Discovering ACI Worldwide: A Closer Look</h2>
ACI Worldwide Inc develops, markets, and installs a portfolio of software products focused on facilitating electronic payments. The firm also leverages its distribution network in the Americas; Europe, the Middle East, and Africa, or EMEA; and Asia-Pacific regions to sell software developed by third parties. ACI software products process payment transactions for retail banking clients, billers such as utilities and healthcare providers, and community banks and credit unions. ACI's customers are financial institutions all over the world, but majority of the revenue is generated in the United States and EMEA regions.
<h3>ACI Worldwide's Financial Performance</h3>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: ACI Worldwide displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 5.48%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: ACI Worldwide's net margin is impressive, surpassing industry averages. With a net margin of 25.73%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): ACI Worldwide's ROE excels beyond industry benchmarks, reaching 9.67%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): ACI Worldwide's ROA stands out, surpassing industry averages. With an impressive ROA of 3.66%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: ACI Worldwide's debt-to-equity ratio stands notably higher than the industry average, reaching 0.81. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>What Are Analyst Ratings?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Latest Analyst Ratings For ACI Worldwide

The latest update is out from ACI Worldwide (ACIW). Discover the latest insights on our financial performance and operational results in the recent...

ACI Worldwide: Financial Health and Future Outlook Update

Needham analyst Mayank Tandon maintained a Hold rating on ACI Worldwide (ACIW – Research Report) today. The company's shares opened today at $48.25...

ACI Worldwide (ACIW) Gets a Hold from Needham

In a report released yesterday, Joseph Vafi from Canaccord Genuity maintained a Buy rating on ACI Worldwide (ACIW – Research Report), with a price ...

ACI Worldwide: Strong Q2 Performance and Strategic Growth Initiatives Justify Buy Rating

Seaport Global analyst Jeff Cantwell maintained a Buy rating on ACI Worldwide (ACIW – Research Report) today and set a price target of $56.00. The ...

Seaport Global Sticks to Its Buy Rating for ACI Worldwide (ACIW)

ACI Worldwide Inc. (ACIW) Q2 2024 Earnings Call Transcript

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on ACI Worldwide (ACIW – Research Report), Wix (WIX –...

Analysts Offer Insights on Technology Companies: ACI Worldwide (ACIW), Wix (WIX) and Nvidia (NVDA)

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Before getting into financial technology or <a href="https://investorplace.com/industries/financial/fintech/">fintech stocks</a>, a little story might help. There&rsquo;s a popular pizza joint in my neck of the woods. These folks are from New York and I think they know people so I&rsquo;m going to be diplomatic. While the pie is awesome, the problem is that the company &ndash; which has been in business since 1997 &ndash; is cash only.



Delivery? Fuggedaboutit! An app to take your order? Are you serious? You pick up the phone and dial and maybe someone will pick up. If not, I guess you&rsquo;re going to have to walk up to the counter. About the only convenience in this place is that it offers an ATM inside. That&rsquo;s it.



Now, these folks might get away with such a business model. But that&rsquo;s not going to fly with new businesses. As the Brookings Institution stated, <a href="https://www.brookings.edu/articles/cash-will-soon-be-obsolete-will-america-be-ready/">cash will soon be obsolete</a>. Consumers are demanding more digitalized conveniences, not less. So, unless you have a brilliant recipe for authentic New York-style pizza, you better check out these fintech stocks.



<h2>PayPal (PYPL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/pypl1600-1-300x169.png" alt="PayPal Holdings, Inc. (PYPL) icon displayed on smartphone with keyboard background. is an American multinational financial technology company operating an online payment"><div>Source: Poetra.RH / Shutterstock.com</div></div>One of the powerhouses among fintech stocks, PayPal (NASDAQ:<a href="https://investorplace.com/stock-quotes/pypl-stock-quote/">PYPL</a>) reached a peak valuation in 2021. However, since then, PYPL stock has cratered due to a combination of factors, including unfavorable monetary policy. However, certain positive developments &ndash; including a <a href="https://finance.yahoo.com/news/stock-market-today-sp-500-nasdaq-surge-as-wild-week-on-wall-street-continues-160441243.html">better-than-expected jobless claims print</a> &ndash; may bode well for overall consumer sentiment.



For investors seeking a deal, PYPL stock may appear intriguing. Right now, <a href="https://finance.yahoo.com/quote/pypl/key-statistics">shares trade hands at 2.17X trailing-year revenue</a>. That&rsquo;s below what was seen during the first quarter of this year when the metric stood at 2.49X. Overall, in the past year, the ratio landed at 2.32X. Therefore, by a reversion to the mean, PYPL may expand into its former valuation.



Analysts are modeling fiscal 2024 sales to hit $31.93 billion. If so, that would imply a growth rate of 14.8% from the prior year. In 2025, experts believe that revenue may reach $34.4 billion. The high-side view stands at $35.12 billion.



Assuming a shares outstanding count of 1.02 billion, PYPL stock is trading at a modest 1.87X next year&rsquo;s most-optimistic sales forecast. This is one of the finctech stocks to watch.



<h2>Paysafe (PSFE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/01/shutterstock_1604094889-300x169.png" alt="Paysafe (PSFE) Card Apple Store Apps on Iphone Screen on a Wooden Summer Floor with Aces Card and Green Climbing Plants"><div>Source: Devina Saputri / Shutterstock.com</div></div>Based in the U.K., Paysafe (NYSE:<a href="https://investorplace.com/stock-quotes/psfe-stock-quote/">PSFE</a>) provides end-to-end payment solutions in multiple international markets. Its payment platform provides a range of solutions such as credit and debit card processing, digital wallets, eCash and real-time banking services for certain entertainment verticals. These include iGaming, online betting and retail and hospitality-related applications.



At this moment, PSFE stock trades at only 0.71X trailing-year revenue. That&rsquo;s low compared to other players in the infrastructure software space, which <a href="https://fullratio.com/ps-ratio-by-industry">runs an average multiple of 4.14X</a>. Admittedly, Paysafe&rsquo;s price-to-sales ratio is hotter than the prior year&rsquo;s average metric of 0.5X. Still, there&rsquo;s a lot of potential for growth.



In fiscal 2024, analysts are modeling for revenue to land at $1.71 billion. If so, that would entail a lift of 6.6% from the prior year&rsquo;s tally of $1.6 billion. In the following year, sales could rise to $1.83 billion. As well, the <a href="https://finance.yahoo.com/quote/psfe/analysis">high-side view calls for $1.92 billion</a>.



Assuming a shares outstanding count of 60.77 million, PSFE trades at 0.62X projected high-side 2025 sales. That&rsquo;s really cheap considering the company&rsquo;s forward potential. It&rsquo;s one of the fintech stocks to consider.



<h2>ACI Worldwide (ACIW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/fintech_1600_1065252818-300x169.png" alt="Online banking businessman using smartphone with credit card Fintech and Blockchain concept"><div>Source: Joyseulay / Shutterstock.com</div></div>Another player in the infrastructure software space, ACI Worldwide (NASDAQ:<a href="https://investorplace.com/stock-quotes/aciw-stock-quote/">ACIW</a>) develops, markets, installs and supports a range of software products and solutions for facilitating digital payments. In addition to the processing of credit, debit and prepaid card transactions, ACI is also involved in the fields of digital innovation and fraud prevention.



Now, the difference between ACIW stock and other rivals in the ecosystem is valuation. Right now, shares trade hands at 3.21X sales. That&rsquo;s a hot premium compared to many of its competitors. However, it&rsquo;s still lower than the sector average, making it undervalued. That said, in the past year, the metric averaged 2.39X.



Still, patient investors may have a deal with ACIW stock. Analysts are modeling for revenue of $1.58 billion by year&rsquo;s end. If so, that would translate to a growth rate of 10.7% from last year&rsquo;s print of $1.43 billion. And in fiscal 2025, sales could rise again by 7.3% to $1.69 billion. The high-side view <a href="https://finance.yahoo.com/quote/aciw/key-statistics">calls for $1.72 billion</a>.



Assuming a shares outstanding count of 104.66 million, ACIW stock is trading at 2.82X high-side 2025 revenue. It&rsquo;s at least one of the fintech stocks to investigate.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/08/3-fintech-stocks-to-buy-for-their-game-changing-potential/">3 Fintech Stocks to Buy for Their Game-Changing Potential</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Fintech Stocks to Buy for Their Game-Changing Potential

Franklin Small Cap Value Fund Q2 2024 Commentary

Analysts have been eager to weigh in on the Technology sector with new ratings on Keysight Technologies (KEYS – Research Report) and ACI Worldwide ...

Analysts' Opinions Are Mixed on These Technology Stocks: Keysight Technologies (KEYS) and ACI Worldwide (ACIW)

ACI Worldwide: Up Over 100% In The Last Year But Still Undervalued

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Press Releases

ACI Worldwide and RS2 Launch One-Stop Solution for Acquirers and Issuers in Brazil

ACI Worldwide Named a Top Workplace by U.S. News & World Report and Newsweek

ACI Worldwide Named to CNBC's World's Top Fintech Companies 2024 List

ACI Worldwide, Inc. To Release Financial Results for the Quarter Ended June 30, 2024

ACI Worldwide Extends Strategic Partnership with Worldpay

ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2024

Datos Names ACI Worldwide Best in Class in Payments Orchestration

ACI Worldwide and Mexipay Extend Partnership to Boost Instant Payments Adoption in Mexico

Nearly One in Five Consumers Struck by Online Identity Fraud, According to ACI Worldwide Speedpay Pulse Report

ACI Worldwide Collaborates with Red Hat to Deliver Enterprise Payments for the Cloud Era

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