Accenture (ACN) closed at $242.90 in the latest trading session, marking a -2.23% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.17% for the day. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 2.04%.
Coming into today, shares of the consulting company had gained 0.11% in the past month. In that same time, the Computer and Technology sector gained 5.49%, while the S&P 500 gained 2.12%.
Investors will be eagerly watching for the performance of Accenture in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.74, marking a 4.18% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.56 billion, up 4.93% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.78 per share and a revenue of $73.8 billion, signifying shifts of +6.57% and +5.92%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Accenture. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Accenture is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Accenture is holding a Forward P/E ratio of 18.02. This represents a premium compared to its industry average Forward P/E of 17.01.
Also, we should mention that ACN has a PEG ratio of 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Accenture PLC (ACN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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