ACEL Should I Buy
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Accel Entertainment Inc (ACEL) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the company's financial performance has shown significant improvement in the latest quarter, the technical indicators are bearish, and there are no strong trading signals or positive catalysts to suggest immediate upside potential. Analysts' ratings are mixed, and the stock lacks momentum or significant institutional interest. It is better to wait for clearer signals or improved market conditions before considering an investment.
The technical indicators for ACEL are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 61.574, and the moving averages suggest a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R1: 11.399), which could limit immediate upside potential.
The company's financial performance in Q3 2025 was strong, with revenue up 9.09% YoY, net income up 173.01% YoY, and EPS up 166.67% YoY. Analysts have noted the company's strong recurring revenue model and industry-leading EBITDA performance.
The stock has limited float, which restricts significant institutional ownership. Growth in Illinois, which accounts for 75% of the company's revenue, is expected to slow. Additionally, there are no recent news events or significant insider or hedge fund activity to drive the stock higher.
In Q3 2025, Accel Entertainment reported a revenue increase of 9.09% YoY to $329.69M, net income growth of 173.01% YoY to $13.36M, and EPS growth of 166.67% YoY to $0.16. Gross margin also improved by 3.98% YoY to 25.34%.
Analyst ratings are mixed. CBRE initiated coverage with a Buy rating and a $17 price target, while Truist gave a Hold rating with a $13 price target, citing slowing growth in Illinois and limited float. Citizens JMP rated the stock as Outperform with a $13 price target, highlighting the company's strong recurring revenue model.
