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Accenture (ACN) Laps the Stock Market: Here's Why

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In the latest trading session, Accenture (ACN - Free Report) closed at $290.43, marking a +0.7% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.

The consulting company's shares have seen a decrease of 5.85% over the last month, not keeping up with the Business Services sector's loss of 0.47% and the S&P 500's gain of 3.25%.

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 June 20, 2024. The company's earnings per share (EPS) are projected to be $3.14, reflecting a 1.57% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $16.57 billion, up 0.01% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.09 per share and a revenue of $65.28 billion, signifying shifts of +3.6% and +1.82%, respectively, from the last 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, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. At present, Accenture boasts a Zacks Rank of #4 (Sell).

In the context of valuation, Accenture is at present trading with a Forward P/E ratio of 23.85. This indicates a premium in contrast to its industry's Forward P/E of 22.9.

We can also see that ACN currently has a PEG ratio of 3.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.42.

The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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