Why the Market Dipped But Accenture (ACN) Gained Today
In the latest trading session, Accenture (ACN) closed at $336.78, marking a +1.05% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.85%.
The consulting company's stock has climbed by 1.46% in the past month, exceeding the Computer and Technology sector's loss of 1% and lagging the S&P 500's gain of 1.52%.
The investment community will be paying close attention to the earnings performance of Accenture in its upcoming release. The company is slated to reveal its earnings on September 26, 2024. The company is predicted to post an EPS of $2.77, indicating a 2.21% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.31 billion, up 2.05% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.95 per share and a revenue of $64.79 billion, signifying shifts of +2.4% and +1.06%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Accenture. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. At present, Accenture boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 27.89. This signifies a discount in comparison to the average Forward P/E of 28.29 for its industry.
We can additionally observe that ACN currently boasts a PEG ratio of 3.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 3.08 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 17% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Accenture PLC (ACN) : Free Stock Analysis Report