Back to top

Image: Bigstock

Accenture (ACN) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Accenture (ACN - Free Report) closed the most recent trading day at $191.48, moving -1.39% from the previous trading session. This move lagged the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1%.

Coming into today, shares of the consulting company had lost 0.25% in the past month. In that same time, the Business Services sector gained 2.64%, while the S&P 500 lost 1.1%.

ACN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, up 8.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.08 billion, up 9.17% from the year-ago period.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $7.33 per share and revenue of $43.24 billion. These results would represent year-over-year changes of +8.75% and +9.27%, respectively.

Any recent changes to analyst estimates for ACN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ACN is currently a Zacks Rank #2 (Buy).

In terms of valuation, ACN is currently trading at a Forward P/E ratio of 26.49. For comparison, its industry has an average Forward P/E of 18.58, which means ACN is trading at a premium to the group.

Also, we should mention that ACN has a PEG ratio of 2.56. 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. ACN's industry had an average PEG ratio of 1.65 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ACN in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Accenture PLC (ACN) - free report >>

Published in