- ACEL
+13.15%
Accel Entertainment (ACEL) just reported third quarter results that topped analyst expectations, with revenue of US$363.56 million and earnings of US$0.25 per share, along with fresh progress in Chicago and Wyoming expansion plans.
The stronger third quarter has been followed by a sharp shift in sentiment, with Accel Entertainment’s share price jumping 13.15% in a single day and 21.01% over the past week. This has contributed to an 18.03% year to date share price return and a 32.35% one year total shareholder return, indicating momentum building after a more muted three and five year record.
Scan how Accel Entertainment’s momentum compares with other potential breakouts by checking the hand-picked 35 high quality undervalued stocks with solid fundamentals and room for sentiment to shift.
After a one week surge in Accel Entertainment that already rewards anyone who bought the dip, the real fork in the road is simple: pay up now for that momentum, or wait and hope for a cooler entry.
Most Popular Narrative: 14% Undervalued
Accel Entertainment’s most followed narrative places fair value at $15.57 per share, compared with a last close of $13.42. This puts the recent price jump into a wider context around expansion and cash generation.
The main thing that has to go right is that Accel Entertainment successfully executes its shift from a logistics-heavy route operator to a higher-margin gaming and hospitality platform that uses technology, exclusive content and disciplined capital allocation to turn new markets into solid cash generators.
See why 2 investors see Accel Entertainment as 14% undervalued.
Result: Fair Value of $15.57 (UNDERVALUED)
Still, Accel Entertainment remains heavily exposed to Illinois regulation, and weaker returns on recent investment could challenge the idea that new markets will materially re-rate the stock.
Find out about the key risks to this Accel Entertainment narrative.
Next Steps
If the mixed sentiment around Accel Entertainment leaves you undecided, consider reviewing the full picture yourself with the 4 key rewards and 2 important warning signs
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