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Accenture (ACN) Outpaces Stock Market Gains: What You Should Know
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Accenture (ACN - Free Report) closed at $304.60 in the latest trading session, marking a +1.41% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the consulting company had lost 11.83% over the past month, lagging the Business Services sector's loss of 11.12% and the S&P 500's loss of 10.81% in that time.
Accenture will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.84, up 18.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.06 billion, up 21.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.80 per share and revenue of $62.08 billion, which would represent changes of +22.73% and +22.85%, respectively, from the prior year.
It is also important to note the recent changes 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. Accenture currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 27.81 right now. This represents a premium compared to its industry's average Forward P/E of 20.64.
Meanwhile, ACN's PEG ratio is currently 2.78. 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. ACN's industry had an average PEG ratio of 1.32 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Accenture (ACN) Outpaces Stock Market Gains: What You Should Know
Accenture (ACN - Free Report) closed at $304.60 in the latest trading session, marking a +1.41% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the consulting company had lost 11.83% over the past month, lagging the Business Services sector's loss of 11.12% and the S&P 500's loss of 10.81% in that time.
Accenture will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.84, up 18.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.06 billion, up 21.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.80 per share and revenue of $62.08 billion, which would represent changes of +22.73% and +22.85%, respectively, from the prior year.
It is also important to note the recent changes 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. Accenture currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 27.81 right now. This represents a premium compared to its industry's average Forward P/E of 20.64.
Meanwhile, ACN's PEG ratio is currently 2.78. 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. ACN's industry had an average PEG ratio of 1.32 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.