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Accenture (ACN) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest market close, Accenture (ACN - Free Report) reached $332.43, with a -0.48% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.

The consulting company's shares have seen an increase of 15.17% over the last month, surpassing the Business Services sector's gain of 8.93% and the S&P 500's gain of 7.49%.

The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company is scheduled to release its earnings on December 19, 2023. The company's earnings per share (EPS) are projected to be $3.11, reflecting a 0.97% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $16.23 billion, up 3.07% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.10 per share and revenue of $66.56 billion, which would represent changes of +3.68% and +3.81%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Accenture. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Accenture holds a Zacks Rank of #3 (Hold).

In the context of valuation, Accenture is at present trading with a Forward P/E ratio of 27.6. For comparison, its industry has an average Forward P/E of 21.64, which means Accenture is trading at a premium to the group.

We can additionally observe that ACN currently boasts a PEG ratio of 3.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Consulting Services industry held an average PEG ratio of 1.3.

The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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