Back to top

Image: Bigstock

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

Read MoreHide Full Article

Accenture (ACN - Free Report) closed at $198.36 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.

Heading into today, shares of the consulting company had gained 6.3% over the past month, outpacing the Business Services sector's gain of 4.96% and the S&P 500's gain of 3.42% in that time.

ACN will be looking to display strength as it nears its next earnings release, which is expected to be December 19, 2019. In that report, analysts expect ACN to post earnings of $2 per share. This would mark year-over-year growth of 2.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.14 billion, up 5.01% from the year-ago period.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $7.78 per share and revenue of $45.87 billion. These results would represent year-over-year changes of +5.71% and +6.14%, respectively.

It is also important to note the recent changes to analyst estimates for ACN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ACN is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ACN is holding a Forward P/E ratio of 25.29. This represents a premium compared to its industry's average Forward P/E of 18.32.

We can also see that ACN currently has a PEG ratio of 2.45. 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. The Consulting Services industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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.

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