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Here's How Much You'd Have If You Invested $1000 in Accenture a Decade Ago
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Accenture (ACN - Free Report) ten years ago? It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today?
Accenture's Business In-Depth
With that in mind, let's take a look at Accenture's main business drivers.
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently one of the top consultancy firms of the world by revenues that increased 4% in fiscal 2023 with a contribution of 52% from consulting services.
The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. It has extensive relationships with World's leading companies. Currently, Accenture’s clients comprise 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Ability to anticipate large, transformative technology trends and capitalize on them through mergers and acquisitions are keys to the company’s success.
Accenture reports under five segments, which are discussed below:
Communications, Media & Technology(18% of FY23 revenues): Offers services to communications, electronics, high technology, media and entertainment industries.
Financial Services (19%): Offers services to banking, capital markets and insurance industries. The segment enables clients to address growth, cost and profitability pressures, industry consolidation and regulatory changes.
Health & Public Service (19%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
Products (30%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.
Resources (14%): Offers services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries. The segment helps clients manage complex change initiatives and integrate digital technologies.
On the basis of nature of work, the company derives its revenues by providing Managed Services (48% of FY23 revenues) and Consulting services (52%) . Geographically, 47% of total FY23 revenues were generated in North America, 33% in Europe and 20% from Growth Markets.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Accenture a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $4,647.55, or a gain of 364.76%, as of December 14, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.14% and the price of gold went up 57.17% over the same time frame.
Analysts are anticipating more upside for ACN.
Accenture shares have gained 25% in the year-to-date period. Technological prowess, contribution from acquisitions, strong growth prospects and dividend payouts make the shares attractive. The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. These trends are boosting its managed services business across the world. We expect these revenues to grow 5.4% and 5.5%, respectively, in fiscal 2024 and 2025. A disciplined acquisition strategy helps Accenture to channelize business in high-growth areas. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes the company to foreign currency exchange rate fluctuations.
The stock is up 5.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Accenture a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Accenture (ACN - Free Report) ten years ago? It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today?
Accenture's Business In-Depth
With that in mind, let's take a look at Accenture's main business drivers.
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently one of the top consultancy firms of the world by revenues that increased 4% in fiscal 2023 with a contribution of 52% from consulting services.
The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. It has extensive relationships with World's leading companies. Currently, Accenture’s clients comprise 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Ability to anticipate large, transformative technology trends and capitalize on them through mergers and acquisitions are keys to the company’s success.
Accenture reports under five segments, which are discussed below:
Communications, Media & Technology (18% of FY23 revenues): Offers services to communications, electronics, high technology, media and entertainment industries.
Financial Services (19%): Offers services to banking, capital markets and insurance industries. The segment enables clients to address growth, cost and profitability pressures, industry consolidation and regulatory changes.
Health & Public Service (19%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
Products (30%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.
Resources (14%): Offers services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries. The segment helps clients manage complex change initiatives and integrate digital technologies.
On the basis of nature of work, the company derives its revenues by providing Managed Services (48% of FY23 revenues) and Consulting services (52%) . Geographically, 47% of total FY23 revenues were generated in North America, 33% in Europe and 20% from Growth Markets.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Accenture a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in December 2013 would be worth $4,647.55, or a gain of 364.76%, as of December 14, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 165.14% and the price of gold went up 57.17% over the same time frame.
Analysts are anticipating more upside for ACN.
Accenture shares have gained 25% in the year-to-date period. Technological prowess, contribution from acquisitions, strong growth prospects and dividend payouts make the shares attractive. The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. These trends are boosting its managed services business across the world. We expect these revenues to grow 5.4% and 5.5%, respectively, in fiscal 2024 and 2025. A disciplined acquisition strategy helps Accenture to channelize business in high-growth areas. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes the company to foreign currency exchange rate fluctuations.
The stock is up 5.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023. The consensus estimate has moved up as well.