Accenture (ACN) closed at $261.22 in the latest trading session, marking a -3.41% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.72%.
The consulting company's stock has climbed by 0.79% in the past month, falling short of the Computer and Technology sector's gain of 1.88% and outpacing the S&P 500's gain of 0.78%.
The investment community will be paying close attention to the earnings performance of Accenture in its upcoming release. In that report, analysts expect Accenture to post earnings of $2.87 per share. This would mark year-over-year growth of 1.77%. At the same time, our most recent consensus estimate is projecting a revenue of $17.74 billion, reflecting a 6.51% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.87 per share and a revenue of $73.9 billion, representing changes of +7.27% and +6.07%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Accenture. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. Currently, Accenture is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Accenture is currently being traded at a Forward P/E ratio of 19.5. This valuation marks a premium compared to its industry average Forward P/E of 16.87.
Also, we should mention that ACN has a PEG ratio of 2.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 1.37 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Accenture PLC (ACN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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