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Shares of Accenture plc (ACN - Free Report) scaled a 52-week high of $306.85 in the trading session on Jul 06, before closing a tad lower at $305.4.
The company’s shares have charted a solid trajectory in recent times, appreciating 41.2% over the past year, ahead of 40.1% surge of the Zacks S&P composite index.
Image Source: Zacks Investment Research
Notably, Accenture has witnessed a 4.7% rise in share price since it posted third-quarter fiscal 2021 results.
Let’s find out what’s supporting the uptick.
Upbeat Fiscal 2021 Guidance
Accenture has raised its guidance for fiscal year 2021. Revenues are now expected to register 10-11% growth in terms of local currency compared with the prior growth rate of 6.5-8.5%.
The company expects adjusted EPS in the range of $8.71-$8.80 compared with the prior-guided range of $8.32-$8.50. The current Zacks Consensus Estimate of $8.77 lies within the updated guidance.
Operating cash flow is now anticipated in the range of $8.65-$9.15 billion compared with the prior guidance of $7.65-$8.15 billion. Free cash flow is now expected between $8.0 billion and $8.5 billion compared with the prior guidance of $7.0 billion to $7.5 billion.
Consecutive Earnings & Revenue Beat
Accenture came up with better-than-expected earnings and revenue performance in the last three quarters. The company’s bottom line continued to benefit from higher revenues and operating numbers.
Boosting Cloud Capabilities
Accenture’s strategy of enhancing its cloud capabilities through acquisitions and partnerships is a step in the right direction. This is evident from the recent forecast by several independent research firms. Per International Data Corporation, global spending on public cloud services and infrastructure market will witness a compounded annual growth rate or CAGR of 22.3% during the 2019-2023 period. Therefore, considering the growing need for cloud-based applications and software, we expect Accenture’s investments in this space to propel long-term growth.
Long-term (three to five years) expected earnings per share growth rate for Paychex, Interpublic and Barrett Business Services is projected at 8%, 10% and 15.5%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Accenture (ACN) Touches 52-Week High: What's Driving It?
Shares of Accenture plc (ACN - Free Report) scaled a 52-week high of $306.85 in the trading session on Jul 06, before closing a tad lower at $305.4.
The company’s shares have charted a solid trajectory in recent times, appreciating 41.2% over the past year, ahead of 40.1% surge of the Zacks S&P composite index.
Notably, Accenture has witnessed a 4.7% rise in share price since it posted third-quarter fiscal 2021 results.
Let’s find out what’s supporting the uptick.
Upbeat Fiscal 2021 Guidance
Accenture has raised its guidance for fiscal year 2021. Revenues are now expected to register 10-11% growth in terms of local currency compared with the prior growth rate of 6.5-8.5%.
The company expects adjusted EPS in the range of $8.71-$8.80 compared with the prior-guided range of $8.32-$8.50. The current Zacks Consensus Estimate of $8.77 lies within the updated guidance.
Operating cash flow is now anticipated in the range of $8.65-$9.15 billion compared with the prior guidance of $7.65-$8.15 billion. Free cash flow is now expected between $8.0 billion and $8.5 billion compared with the prior guidance of $7.0 billion to $7.5 billion.
Consecutive Earnings & Revenue Beat
Accenture came up with better-than-expected earnings and revenue performance in the last three quarters. The company’s bottom line continued to benefit from higher revenues and operating numbers.
Boosting Cloud Capabilities
Accenture’s strategy of enhancing its cloud capabilities through acquisitions and partnerships is a step in the right direction. This is evident from the recent forecast by several independent research firms. Per International Data Corporation, global spending on public cloud services and infrastructure market will witness a compounded annual growth rate or CAGR of 22.3% during the 2019-2023 period. Therefore, considering the growing need for cloud-based applications and software, we expect Accenture’s investments in this space to propel long-term growth.
Zacks Rank and Other Stocks to Consider
Accenture currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Zacks Business Services sector include Paychex (PAYX - Free Report) , Interpublic (IPG - Free Report) and Barrett Business Services (BBSI - Free Report) , each carrying a Zacks Rank #2 as well.
Long-term (three to five years) expected earnings per share growth rate for Paychex, Interpublic and Barrett Business Services is projected at 8%, 10% and 15.5%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>