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Accenture (ACN) Beats Stock Market Upswing: What Investors Need to Know

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The latest trading session saw Accenture (ACN - Free Report) ending at $363.04, denoting a +0.48% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

The the stock of consulting company has risen by 2.22% in the past month, leading the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Accenture in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.39, marking a 3.67% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.21 billion, reflecting a 6.09% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.77 per share and a revenue of $69.02 billion, signifying shifts of +6.86% and +6.36%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Accenture is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Accenture currently has a Forward P/E ratio of 28.29. For comparison, its industry has an average Forward P/E of 28.21, which means Accenture is trading at a premium to the group.

Also, we should mention that ACN has a PEG ratio of 3.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.8.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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