Will ACI Worldwide (ACIW) Achieve High Organic Growth Levels?

The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund fell 5.8% (5.9%, net) compared to a 3.3% decrease in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the second quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.

The London Company Small Cap Strategy highlighted stocks like ACI Worldwide, Inc. (NASDAQ:ACIW), in the second quarter 2024 investor letter. ACI Worldwide, Inc. (NASDAQ:ACIW) is a software company that develops, installs, and supports a wide range of software products and solutions. The one-month return of ACI Worldwide, Inc. (NASDAQ:ACIW) was 16.04%, and its shares gained 98.17% of their value over the last 52 weeks. On August 9, 2024, ACI Worldwide, Inc. (NASDAQ:ACIW) stock closed at $46.59 per share with a market capitalization of $4.876 billion.

The London Company Small Cap Strategy stated the following regarding ACI Worldwide, Inc. (NASDAQ:ACIW) in its Q2 2024 investor letter:

“ACI Worldwide, Inc. (NASDAQ:ACIW) – We added to our ACIW stake in April and the stock subsequently outperformed during 2Q. ACIW started 2024 on good footing with organic volume growth running ahead of schedule. We have greater conviction that ACIW can sustainably command higher organic growth levels than it did a few years ago. We also note ACIW’s favorable capital allocation, as it reduced leverage to its lowest point in 10 years, and announced a large buyback plan representing -10% of market cap.”

A businesswoman using a digital tablet, making a payment using the company’s payment processing technology.

ACI Worldwide, Inc. (NASDAQ:ACIW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held ACI Worldwide, Inc. (NASDAQ:ACIW) at the end of the first quarter which was 16 in the previous quarter. ACI Worldwide, Inc.’s (NASDAQ:ACIW) revenue for the second quarter of 2024 was $373 million, up 16% from Q2 2023, and its adjusted EBITDA was $93 million, up 62% compared to Q2 2023. While we acknowledge the potential of ACI Worldwide, Inc. (NASDAQ:ACIW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.