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Accenture (ACN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Accenture (ACN - Free Report) closed at $361.50, marking a +1.74% move from the previous day. This change outpaced the S&P 500's 0.37% gain on the day.

Prior to today's trading, shares of the consulting company had gained 11.22% over the past month. This has outpaced the Business Services sector's gain of 2.94% and the S&P 500's gain of 5.96% in that time.

Investors will be hoping for strength from ACN as it approaches its next earnings release. On that day, ACN is projected to report earnings of $2.62 per share, which would represent year-over-year growth of 20.74%. Our most recent consensus estimate is calling for quarterly revenue of $14.21 billion, up 20.8% from the year-ago period.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $10.12 per share and revenue of $57.4 billion. These results would represent year-over-year changes of +15% and +13.59%, respectively.

Investors might also notice recent changes to analyst estimates for ACN. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ACN is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ACN is holding a Forward P/E ratio of 35.1. This represents a premium compared to its industry's average Forward P/E of 22.64.

Meanwhile, ACN's PEG ratio is currently 3.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACN's industry had an average PEG ratio of 1.44 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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