Accenture (ACN) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, Accenture (ACN) reached $373.22, with a -1.31% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.41%.
The consulting company's shares have seen an increase of 1.75% over the last month, not keeping up with the Business Services sector's gain of 5.27% and the S&P 500's gain of 2.7%.
Analysts and investors alike will be keeping a close eye on the performance of Accenture in its upcoming earnings disclosure. The company's earnings report is set to go public on March 21, 2024. In that report, analysts expect Accenture to post earnings of $2.65 per share. This would mark a year-over-year decline of 1.49%. Simultaneously, our latest consensus estimate expects the revenue to be $15.84 billion, showing a 0.15% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.22 per share and revenue of $66.22 billion. These totals would mark changes of +4.71% and +3.29%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Accenture is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Accenture's current valuation metrics, including its Forward P/E ratio of 30.96. This indicates a premium in contrast to its industry's Forward P/E of 24.27.
It's also important to note that ACN currently trades at a PEG ratio of 3.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.39.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Accenture PLC (ACN) : Free Stock Analysis Report
