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Why the Market Dipped But Accenture (ACN) Gained Today
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Accenture (ACN - Free Report) closed the most recent trading day at $384.95, moving +1.1% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.28%.
The consulting company's stock has climbed by 9.15% in the past month, exceeding the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of Accenture in its upcoming release. The company is predicted to post an EPS of $2.78, indicating a 0.36% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $16.59 billion, up 4.97% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.69 per share and revenue of $68.63 billion. These totals would mark changes of +6.19% and +5.75%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Accenture is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 30.01 right now. For comparison, its industry has an average Forward P/E of 29.81, which means Accenture is trading at a premium to the group.
It is also worth noting that ACN currently has a PEG ratio of 3.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry had an average PEG ratio of 2.85 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Accenture (ACN) Gained Today
Accenture (ACN - Free Report) closed the most recent trading day at $384.95, moving +1.1% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.28%.
The consulting company's stock has climbed by 9.15% in the past month, exceeding the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of Accenture in its upcoming release. The company is predicted to post an EPS of $2.78, indicating a 0.36% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $16.59 billion, up 4.97% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.69 per share and revenue of $68.63 billion. These totals would mark changes of +6.19% and +5.75%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.08% fall in the Zacks Consensus EPS estimate. Accenture is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 30.01 right now. For comparison, its industry has an average Forward P/E of 29.81, which means Accenture is trading at a premium to the group.
It is also worth noting that ACN currently has a PEG ratio of 3.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry had an average PEG ratio of 2.85 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 27% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.