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Accenture (ACN) Gains But Lags Market: What You Should Know

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The latest trading session saw Accenture (ACN - Free Report) ending at $389.53, denoting a +0.18% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.04%. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Shares of the consulting company have appreciated by 11.18% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.92%.

Market participants will be closely following the financial results of Accenture in its upcoming release. The company plans to announce its earnings on March 20, 2025. The company is forecasted to report an EPS of $2.84, showcasing a 2.53% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $16.62 billion, showing a 5.21% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.73 per share and a revenue of $68.72 billion, representing changes of +6.53% and +5.9%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Accenture. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Accenture is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Accenture is currently being traded at a Forward P/E ratio of 30.55. Its industry sports an average Forward P/E of 29.51, so one might conclude that Accenture is trading at a premium comparatively.

It's also important to note that ACN currently trades at a PEG ratio of 3.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.6.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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