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Acxiom (ACXM) Hits 52-Week High: What's Behind the Rally?

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Shares of Acxiom Corporation ACXM rallied to a new 52-week high of $31.73 on Mar 9, closing marginally lower at $31.69. The company has a market capital of $2.15 billion.

Notably, the stock has returned 16.1% year to date, substantially better than the industry’s rally of 9.6%. The momentum can be attributed to accretive acquisitions and partnerships that are helping in driving product innovation. Moreover, expanding customer base is a key catalyst.

Acxiom has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 20.75%.

Over the last 60 days, fiscal 2018 estimates were revised upward, resulting in the Zacks Consensus Estimate rising from 82 cents to 85 cents per share.



Acquisitions, Partnerships Strengthen Marketing Efforts

LiveRamp recently acquired Pacific Data Partners to enhance its accessibility of IdentityLink platform. Acxiom aims to transform people-based marketing efforts across the length and breadth of business-to-business (B2B) marketers with this acquisition.

Acxiom’s partner network continues to expand, as evident from its partnership with technology firm Adobe Systems Inc. with a view to offer Adobe Marketing Cloud to its customers for seamless cross-channel marketing campaigns. Additionally, the company has teamed up with social media firm Twitter Inc. to aid advertisers gauge the efficacy of advertising campaigns on offline sales.

The company has partnered with Microsoft’s LinkedIn and Yelp Local Audiences in the past. During the third quarter, the company announced extended partnership with RedPoint Global and 4INFO.

Product Innovations: Key Catalyst

The company recently launched Patients Insights Package to empower its healthcare solutions initiatives. The new offering will ensure that insights from data on prospective patients lead to customized and relevant campaigning.

Acxiom’s frequent product innovations like AbiliTecand and partnership with 4INFO — to provide location-based targeting segments for digital campaigns — are aiding the company expand its availability, consequently boosting the top line. In a first, IdentityLink was recently extended to television medium aiding the marketers to effectively campaign.

Acxiom has emerged as a formidable player in the field of marketing services and technology. The company is including the latest digital platforms in its InfoBase platform to increase the accessibility of its products through various digital channels. These products provide Acxiom a competitive edge in the industry.

Zacks Rank and Key Picks

Acxiom carries a Zacks Rank #3 (Hold).

Some better-ranked stocks trading at 52-week high include Paycom Software PAYC, Seagate Technology STX and Akamai Technologies AKAM. While Paycom sports a Zacks Rank #1 (Strong Buy), Seagate and Akamai carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Paycom, Seagate and Akamai are currently pegged at 25.75%, 15.60% and 12.80%, respectively.

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