Accenture plc, (ACN - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth.
The company has an expected long-term earnings per share (three to five years) growth rate of 10%. Further, earnings are anticipated to register 3.7% growth in fiscal 2020 and 6.5% in fiscal 2021.
The company’s shares have gained 23.2% in the past year compared with 18.4% rally of the industry it belongs to.
Accenture is steadily gaining traction in its outsourcing businesses, backed by strong demand to assist clients with the operation and maintenance of digital-related services as well as cloud enablement. In the third quarter of fiscal 2020, Accenture’s outsourcing revenues increased 3% year over year.
The recent acquisition of CreativeDrive is expected to boost Accenture’s content, digital-marketing, media and commercial-service offerings. Another recent buyout, Organize Cloud Lab, has helped expand the company’s user-experience consultancy services and ServiceNow solutions.
Moreover, Accenture extended its technology-services agreement with the global mining company Anglo American. The move confirms that Accenture will continue as a strategic IT-services provider to Anglo American till 2023.
Higher talent costs due to a competitive talent market and Trump’s stringent policies on immigration are hurting consulting-service providers like Accenture. The industry is labor-intensive and heavily dependent on foreign talent.
Zacks Rank and Key Picks
Accenture currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , IQVIA Holdings (IQV - Free Report) and NV5 Global (NVEE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Republic Services, IQVIA Holdings and NV5 Global 7.9%, 9.9% and 13.7%, respectively.
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