ACS provides a full range of information technology services including business process outsourcing, technology outsourcing, and professional services to the commercial sector and federal government. For the 9 months ended 3/01, revenues rose 6% to $1.51B. Net income rose 23% to $97.7M. Revenues benefited from acquisitions and growth in new business bookings. Net income also reflects improved operating efficiencies and lower interest expense.

April 26, 2001

It is hard to believe that there is a stock out there with "computer" in its name that is driving to new highs. Nevertheless, ACS which provides numerous information technology services to the commercial sector as well as the Federal Government is enjoying an excellent share price rally. ACS has been on a tear since it announced solid profits of $0.64 a share last Friday. The 27% increase in earnings over the same quarter a year ago exceeded analysts estimates by 3 pennies. The company also assured investors that it will meet or exceed current estimates of $2.45 for the whole year, which ends June 30th. The solid prospects for ACS inspired JP Morgan to raise its rating to "Buy" from "Long Term Buy". The technical picture for ACS is solid. Last week, ACS found support at its 50-DMA just above $64.00 and has been moving nicely higher this week. The MACD is in positive territory and is also moving higher. Although the Money Flow is strong, it is trading sideways, the OBV is recovering nicely from its lows. A good entry point may provide itself tomorrow if ACS can trade above $70.75 accompanied by midday volume over 250,000 shares.

Picked on April 26th @ $69.13
Change since picked +0.00
Stop Loss $64.50