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

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In the latest market close, Accenture (ACN - Free Report) reached $380.75, with a +1.69% movement compared to the previous day. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.

Heading into today, shares of the consulting company had gained 6.43% over the past month, outpacing the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% in that time.

The upcoming earnings release of Accenture will be of great interest to investors. On that day, Accenture is projected to report earnings of $2.78 per share, which would represent year-over-year growth of 0.36%. Alongside, our most recent consensus estimate is anticipating revenue of $16.59 billion, indicating a 4.97% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.69 per share and revenue of $68.63 billion, which would represent changes of +6.19% and +5.75%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Accenture. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Right now, Accenture possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 29.51 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.44.

It is also worth noting that ACN currently has a PEG ratio of 3.33. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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