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Accenture Opens Innovation Hub in Canada, 800 Jobs in Focus

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Accenture plc (ACN - Free Report) yesterday opened an innovation hub in Toronto, Canada. The company clients will work with clients to innovate, design and develop new products and services.

The hub is a part of the global consulting giant’s continued investment in Canada. The company plans to add 800 highly-skilled technology jobs by 2020 and expand apprenticeship program in the country.

Accenture focuses on innovation through emerging technologies such as artificial intelligence, blockchain and virtual agents and aims at bringing members of under-represented communities to digital economy jobs.

Julie Sweet, Accenture's chief executive officer, stated, "With our network of innovation hubs, we are bringing innovation to our clients' doorsteps, enabling them to harness the power of emerging technologies to transform their businesses."

Shares of Accenture have gained 7.5% in the past year, outperforming the 2% rise of the Zacks S&P 500 composite.

 

 

Our Take

The innovation hub is expected to complement Accenture’s robust growth in North America where the company already has a network of 10 hubs connected to more than 100 locations around the world.

Revenues from North America increased 11% year over year in the fourth quarter of fiscal 2018. The region contributed the largest chunk (around 46%) to Accenture’s net revenues in the quarter.

Accenture PLC Revenue (TTM)

 

 

North America improved 10% year over year on a reported basis and 9% in local currency in fiscal 2018 and contributed around 45% to the company’s net revenues in fiscal 2018.

Zacks Rank & Stocks to Consider

Accenture currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the broader Zacks Business Services sector are The Interpublic Group of Companies, Inc. (IPG - Free Report) , Automatic Data Processing Inc. (ADP - Free Report) and WEX Inc. (WEX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rates for Interpublic, Automatic Data Processing and WEX are 7.4%, 12.5% and 15%, respectively.

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