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Accenture (ACN) Outpaces Stock Market Gains: What You Should Know

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The most recent trading session ended with Accenture (ACN - Free Report) standing at $294.22, reflecting a +1.3% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.27%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.88%.

Prior to today's trading, shares of the consulting company had lost 5.52% over the past month. This has lagged the Business Services sector's loss of 0.58% and the S&P 500's gain of 2.85% in that time.

Market participants will be closely following the financial results of Accenture in its upcoming release. The company plans to announce its earnings on June 20, 2024. 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. Alongside, our most recent consensus estimate is anticipating revenue of $16.57 billion, indicating a 0.01% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $65.28 billion, which would represent changes of +3.6% and +1.82%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. At present, Accenture boasts a Zacks Rank of #4 (Sell).

In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 24.02. For comparison, its industry has an average Forward P/E of 22.99, which means Accenture is trading at a premium to the group.

It is also worth noting that ACN currently has a PEG ratio of 3.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Consulting Services industry had an average PEG ratio of 1.41 as trading concluded yesterday.

The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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