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

·3 min read

Accenture (ACN) closed the most recent trading day at $314.42, moving -0.65% from the previous trading session. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the consulting company had gained 16.28% in the past month. In that same time, the Business Services sector gained 11.31%, while the S&P 500 gained 8.06%.

Investors will be hoping for strength from Accenture as it approaches its next earnings release, which is expected to be September 22, 2022. In that report, analysts expect Accenture to post earnings of $2.57 per share. This would mark year-over-year growth of 16.82%. Meanwhile, our latest consensus estimate is calling for revenue of $15.45 billion, up 15.11% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.68 per share and revenue of $61.62 billion, which would represent changes of +21.36% and +21.94%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Accenture. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Accenture is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Accenture is currently trading at a Forward P/E ratio of 29.64. Its industry sports an average Forward P/E of 21.69, so we one might conclude that Accenture is trading at a premium comparatively.

We can also see that ACN currently has a PEG ratio of 2.96. 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 1.4 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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