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Accenture (ACN) Stock Moves -0.59%: What You Should Know

Zacks Equity Research

Accenture (ACN) closed the most recent trading day at $193.01, moving -0.59% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.73%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 1.32%.

Coming into today, shares of the consulting company had gained 1.67% in the past month. In that same time, the Business Services sector gained 4.32%, while the S&P 500 lost 0.27%.

Investors will be hoping for strength from ACN as it approaches its next earnings release. On that day, ACN is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 8.23%. Our most recent consensus estimate is calling for quarterly revenue of $11.08 billion, up 9.17% from the year-ago period.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $7.33 per share and revenue of $43.24 billion. These results would represent year-over-year changes of +8.75% and +9.27%, respectively.

Investors should also note any recent changes to analyst estimates for ACN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. ACN is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note ACN's current valuation metrics, including its Forward P/E ratio of 26.49. For comparison, its industry has an average Forward P/E of 19.05, which means ACN is trading at a premium to the group.

We can also see that ACN currently has a PEG ratio of 2.56. 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 1.62 at yesterday's closing price.

The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.

To follow ACN in the coming trading sessions, be sure to utilize Zacks.com.


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