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Here's Why You Should Hold on to Accenture (ACN) Stock Now
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Accenture plc (ACN - Free Report) has an impressive Growth Score of B. 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 9.5%. Earnings are expected to increase 8% year over year in fiscal 2023 and 8.2% in fiscal 2024.
Factors That Augur Well
Shares of Accenture have gained 8.2% in the past three months, outperforming the 7.2% rally of the industry it belongs to and 6.9% growth of the Zacks S&P 500 composite.
Acquisitions have been one of the key growth strategies for Accenture. These have enabled the company to enter new markets, diversify and broaden its product portfolio and maintain its leading position. The recent acquisition of Einr AS improves Accenture’s SAP capabilities, enabling it to accelerate supply-chain reinvention for organizations within the retail and consumer electronics spaces.
ACN has been steadily gaining traction in its consulting as well as outsourcing (managed services) businesses, backed by high demand for services that can improve operating efficiencies and save costs.
On the consulting front, the company experiences strong demand for digital, cloud and security-related services. On the outsourcing front, Accenture continues to witness strong demand to assist clients with the operation and maintenance of digital-related services and cloud enablement. Accenture’s revenues of $15.8 billion increased 5.1% year over year on a reported basis and 9% in terms of local currency, in the last reported quarter.
Some Risks
Higher talent costs are hurting consulting services providers like Accenture. The consulting industry is labor intensive and heavily dependent on foreign talent.
Moreover, while frequent acquisitions improve revenue opportunities, business mix and profitability, these acquisitions also add to integration risks. The frequent acquisitions are a distraction for management, which could impact organic growth.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Investors interested in in the Zacks Business Services sector can consider the following stocks:
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. The company has an average surprise of 37.3%.
Maximus (MMS - Free Report) : MMS also has a VGM score of A and sports a Zacks Rank of 1.
The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one occasion, the average surprise being 9.6%.
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Here's Why You Should Hold on to Accenture (ACN) Stock Now
Accenture plc (ACN - Free Report) has an impressive Growth Score of B. 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 9.5%. Earnings are expected to increase 8% year over year in fiscal 2023 and 8.2% in fiscal 2024.
Factors That Augur Well
Shares of Accenture have gained 8.2% in the past three months, outperforming the 7.2% rally of the industry it belongs to and 6.9% growth of the Zacks S&P 500 composite.
Accenture PLC Price
Accenture PLC price | Accenture PLC Quote
Acquisitions have been one of the key growth strategies for Accenture. These have enabled the company to enter new markets, diversify and broaden its product portfolio and maintain its leading position. The recent acquisition of Einr AS improves Accenture’s SAP capabilities, enabling it to accelerate supply-chain reinvention for organizations within the retail and consumer electronics spaces.
ACN has been steadily gaining traction in its consulting as well as outsourcing (managed services) businesses, backed by high demand for services that can improve operating efficiencies and save costs.
On the consulting front, the company experiences strong demand for digital, cloud and security-related services. On the outsourcing front, Accenture continues to witness strong demand to assist clients with the operation and maintenance of digital-related services and cloud enablement. Accenture’s revenues of $15.8 billion increased 5.1% year over year on a reported basis and 9% in terms of local currency, in the last reported quarter.
Some Risks
Higher talent costs are hurting consulting services providers like Accenture. The consulting industry is labor intensive and heavily dependent on foreign talent.
Moreover, while frequent acquisitions improve revenue opportunities, business mix and profitability, these acquisitions also add to integration risks. The frequent acquisitions are a distraction for management, which could impact organic growth.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Investors interested in in the Zacks Business Services sector can consider the following stocks:
Green Dot (GDOT - Free Report) : GDOT currently sports a Zacks Rank #1 (Strong Buy) and has a VGM score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. The company has an average surprise of 37.3%.
Maximus (MMS - Free Report) : MMS also has a VGM score of A and sports a Zacks Rank of 1.
The company has an impressive earning surprise history, beating the consensus mark in three instances and missing on one occasion, the average surprise being 9.6%.