In the latest close session, Accenture (ACN) was down 3.27% at $243.62. The stock trailed the S&P 500, which registered a daily gain of 1.55%. Elsewhere, the Dow saw an upswing of 0.44%, while the tech-heavy Nasdaq appreciated by 2.69%.
Heading into today, shares of the consulting company had gained 1.7% over the past month, outpacing the Computer and Technology sector's loss of 1.89% and the S&P 500's loss of 1.8%.
The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. On that day, Accenture is projected to report earnings of $3.74 per share, which would represent year-over-year growth of 4.18%. At the same time, our most recent consensus estimate is projecting a revenue of $18.56 billion, reflecting a 4.93% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.77 per share and a revenue of $73.8 billion, signifying shifts of +6.5% and +5.92%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Accenture currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Accenture is presently trading at a Forward P/E ratio of 18.29. This signifies a premium in comparison to the average Forward P/E of 15.98 for its industry.
Investors should also note that ACN has a PEG ratio of 2.39 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.87.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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