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

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Accenture (ACN - Free Report) closed the most recent trading day at $366.93, moving -0.42% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day.

Prior to today's trading, shares of the consulting company had gained 13.31% over the past month. This has outpaced the Business Services sector's gain of 5.73% and the S&P 500's gain of 8.19% in that time.

Investors will be hoping for strength from ACN as it approaches its next earnings release, which is expected to be December 16, 2021. On that day, ACN is projected to report earnings of $2.62 per share, which would represent year-over-year growth of 20.74%. Meanwhile, our latest consensus estimate is calling for revenue of $14.21 billion, up 20.8% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.12 per share and revenue of $57.4 billion. These totals would mark changes of +15% and +13.59%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ACN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. ACN is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ACN has a Forward P/E ratio of 36.4 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.04.

It is also worth noting that ACN currently has a PEG ratio of 3.64. 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 1.57 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

To follow ACN in the coming trading sessions, be sure to utilize Zacks.com.


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