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Here’s why the Aconex Ltd share price has gone gangbusters today

It hasn’t been an easy time for shareholders of late, but finally the Aconex Ltd (ASX: ACX) share price is heading in the right direction following a trading update.

At the time of writing the Aconex share price is up 7% to $4.70, bringing its three-month return to a massive 51%.

Why has it rallied?

Much like the iSentia Group Ltd (ASX: ISD) share price rally yesterday, I think the rally in Aconex’s shares today is a bit of a relief rally.

Unfortunately Aconex shareholders have had to endure a number of profit downgrades in the last 12 months. This no doubt had many fearing the worst today when it presented at the Macquarie Group Ltd (ASX: MQG) conference.

For the full-year management reiterated its prior guidance of revenue between $160 million and $165 million and EBITDA between $15 million and $18 million.

Ongoing sales momentum across all regions, reduced uncertainty in the UK, improved conditions in United States, and the stabilisation of oil prices are key factors in its guidance.

Furthermore, management continues to expect revenue growth of at least 20% per annum over the medium to long-term.

Should you invest?

Despite all its troubles I do think that Aconex continues to be a great long-term buy and hold investment.

Its cloud collaboration software continues to grow in popularity and it is not hard to see why. Management is of the belief that its platform can accelerate the pace of product delivery and help build five hospitals for the price of four.

That certainly is a compelling value proposition in my eyes.

So although its shares have rallied strongly in the last few months, I believe investors with a long-term view could still find significant value in holding its shares today.

As well as Aconex, I think these three blue-chips would be great buy and hold investments. Each has been growing earnings at an explosive rate and I believe there is plenty more to come.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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