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

·3 min read

Accenture (ACN) closed at $306.70 in the latest trading session, marking a -1.06% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Heading into today, shares of the consulting company had gained 7.16% over the past month, outpacing the Business Services sector's gain of 3.73% and the S&P 500's gain of 4.59% in that time.

Wall Street will be looking for positivity from Accenture as it approaches its next earnings report date. This is expected to be September 22, 2022. The company is expected to report EPS of $2.57, up 16.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.45 billion, up 15.11% from the prior-year quarter.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $10.68 per share and revenue of $61.62 billion. These results would represent year-over-year changes of +21.36% and +21.94%, respectively.

Any recent changes to analyst estimates for Accenture should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Accenture currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Accenture currently has a Forward P/E ratio of 29.03. For comparison, its industry has an average Forward P/E of 22.24, which means Accenture is trading at a premium to the group.

Also, we should mention that ACN has a PEG ratio of 2.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consulting Services industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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