Accenture (ACN) Outpaces Stock Market Gains: What You Should Know
Accenture (ACN) closed the most recent trading day at $277.27, moving +1.1% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Heading into today, shares of the consulting company had gained 2.19% over the past month, lagging the Business Services sector's gain of 8.01% and the S&P 500's gain of 5.73% in that time.
Accenture will be looking to display strength as it nears its next earnings release. In that report, analysts expect Accenture to post earnings of $2.48 per share. This would mark a year-over-year decline of 2.36%. Our most recent consensus estimate is calling for quarterly revenue of $15.52 billion, up 3.12% from the year-ago period.
ACN's full-year Zacks Consensus Estimates are calling for earnings of $11.46 per share and revenue of $64.29 billion. These results would represent year-over-year changes of +7% and +4.37%, respectively.
Any recent changes to analyst estimates for Accenture should also be noted by investors. 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.
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 has moved 0.02% lower. Accenture is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 23.94 right now. This represents a premium compared to its industry's average Forward P/E of 21.69.
We can also see that ACN currently has a PEG ratio of 2.52. 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. Consulting Services stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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