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Here's How Much a $1000 Investment in Accenture Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Accenture (ACN - Free Report) ten years ago? It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today?
Accenture's Business In-Depth
With that in mind, let's take a look at Accenture's main business drivers.
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently the world’s top consultancy firm by revenues that increased 14% in 2021 with a contribution of 54% from consulting services.
The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. It has extensive relationships with World's leading companies. Currently, Accenture’s clients comprise 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Ability to anticipate large, transformative technology trends and capitalize on them through mergers and acquisitions are keys to the company’s success.
Accenture reports under five segments, which are discussed below:
Communications, Media & Technology(20% of FY21 revenues): Offers services to communications, electronics, high technology, media and entertainment industries.
Financial Services (20%): Offers services to banking, capital markets and insurance industries. The segment enables clients to address growth, cost and profitability pressures, industry consolidation and regulatory changes.
Health & Public Service (18%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
Products (28%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.
Resources (14%): Offers services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries. The segment helps clients manage complex change initiatives and integrate digital technologies.
On the basis of nature of work, the company derives its revenues by providing Outsourcing (46% of FY21 revenues) and Consulting services (54%) . Geographically, 47% of total FY21 revenues were generated in North America, 33% in Europe and 20% from Growth Market.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Accenture a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2012 would be worth $5,281.24, or a 428.12% gain, as of April 4, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 222.75% and gold's return of 10.16% over the same time frame.
Going forward, analysts are expecting more upside for ACN.
Accenture's shares have outperformed the S&P 500 index over the past year, partly due to earnings and revenue beat in the past four quarters. The company has been steadily gaining traction in its outsourcing and consulting businesses. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.
Shares have gained 8.43% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Accenture Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Accenture (ACN - Free Report) ten years ago? It may not have been easy to hold on to ACN for all that time, but if you did, how much would your investment be worth today?
Accenture's Business In-Depth
With that in mind, let's take a look at Accenture's main business drivers.
Years of investment in digital, cloud and security strategy has helped Accenture evolve as a trusted and viable consulting services provider. It is currently the world’s top consultancy firm by revenues that increased 14% in 2021 with a contribution of 54% from consulting services.
The company has spent decades establishing itself as a trusted advisor, continuously adjusting its business mix to take advantage of changing market conditions. It has extensive relationships with World's leading companies. Currently, Accenture’s clients comprise 92 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Ability to anticipate large, transformative technology trends and capitalize on them through mergers and acquisitions are keys to the company’s success.
Accenture reports under five segments, which are discussed below:
Communications, Media & Technology (20% of FY21 revenues): Offers services to communications, electronics, high technology, media and entertainment industries.
Financial Services (20%): Offers services to banking, capital markets and insurance industries. The segment enables clients to address growth, cost and profitability pressures, industry consolidation and regulatory changes.
Health & Public Service (18%): Offers services to the healthcare providers, government agencies, public service organizations, educational institutions and non-profit organizations.
Products (28%): Offers services to the companies which belong to Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail industries.
Resources (14%): Offers services to the companies which belong to chemicals, forest products, energy, metals and mining, utilities and related industries. The segment helps clients manage complex change initiatives and integrate digital technologies.
On the basis of nature of work, the company derives its revenues by providing Outsourcing (46% of FY21 revenues) and Consulting services (54%) . Geographically, 47% of total FY21 revenues were generated in North America, 33% in Europe and 20% from Growth Market.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Accenture a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2012 would be worth $5,281.24, or a 428.12% gain, as of April 4, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 222.75% and gold's return of 10.16% over the same time frame.
Going forward, analysts are expecting more upside for ACN.
Accenture's shares have outperformed the S&P 500 index over the past year, partly due to earnings and revenue beat in the past four quarters. The company has been steadily gaining traction in its outsourcing and consulting businesses. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships. The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.
Shares have gained 8.43% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.