In the latest trading session, Accenture (ACN) closed at $255.88, marking a +2.71% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.59% for the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.46%.
Shares of the consulting company have depreciated by 11.8% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.91%, and the S&P 500's gain of 2.49%.
The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.98, reflecting a 6.81% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.33 billion, up 5.6% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.88 per share and a revenue of $69.41 billion, demonstrating changes of +7.78% and +6.95%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Accenture. 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. At present, Accenture boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Accenture is holding a Forward P/E ratio of 19.35. Its industry sports an average Forward P/E of 16.87, so one might conclude that Accenture is trading at a premium comparatively.
Meanwhile, ACN's PEG ratio is currently 2.27. 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 Computers – IT Services industry had an average PEG ratio of 2.09 as trading concluded yesterday.
The Computers – IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 39% of all 250+ industries.
