In the latest trading session, Accenture (ACN) closed at $197.16, marking a +0.86% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the consulting company had lost 0.95% in the past month. In that same time, the Business Services sector lost 3.42%, while the S&P 500 lost 4.64%.
Investors will be hoping for strength from ACN as it approaches its next earnings release, which is expected to be September 26, 2019. The company is expected to report EPS of $1.71, up 8.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.08 billion, up 9.17% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.33 per share and revenue of $43.24 billion, which would represent changes of +8.75% and +9.27%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ACN. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. ACN is currently a Zacks Rank #2 (Buy).
In terms of valuation, ACN is currently trading at a Forward P/E ratio of 26.67. This represents a premium compared to its industry's average Forward P/E of 18.52.
Also, we should mention that ACN has a PEG ratio of 2.58. 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 was holding an average PEG ratio of 1.43 at yesterday's closing price.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
To follow ACN in the coming trading sessions, be sure to utilize Zacks.com.
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