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Accenture (ACN) Stock Sinks As Market Gains: Here's Why
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Accenture (ACN - Free Report) ended the recent trading session at $306.33, demonstrating a -0.09% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.03%.
Prior to today's trading, shares of the consulting company had lost 5.71% over the past month. This has lagged the Business Services sector's loss of 2.38% and the S&P 500's gain of 0.17% in that time.
The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company is forecasted to report an EPS of $3.14, showcasing a 1.57% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.57 billion, up 0.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $65.31 billion, which would represent changes of +3.6% and +1.87%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Right now, Accenture possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 25.35. For comparison, its industry has an average Forward P/E of 24.09, which means Accenture is trading at a premium to the group.
We can also see that ACN currently has a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ACN's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Accenture (ACN) Stock Sinks As Market Gains: Here's Why
Accenture (ACN - Free Report) ended the recent trading session at $306.33, demonstrating a -0.09% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.03%.
Prior to today's trading, shares of the consulting company had lost 5.71% over the past month. This has lagged the Business Services sector's loss of 2.38% and the S&P 500's gain of 0.17% in that time.
The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company is forecasted to report an EPS of $3.14, showcasing a 1.57% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.57 billion, up 0.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $65.31 billion, which would represent changes of +3.6% and +1.87%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Right now, Accenture possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 25.35. For comparison, its industry has an average Forward P/E of 24.09, which means Accenture is trading at a premium to the group.
We can also see that ACN currently has a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ACN's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.