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Accenture (ACN) Dips More Than Broader Markets: What You Should Know

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Accenture (ACN - Free Report) closed at $298.46 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's 0.63% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the consulting company had lost 0.15% over the past month. This has was narrower than the Business Services sector's loss of 1.31% and lagged the S&P 500's gain of 0.89% in that time.

Investors will be hoping for strength from Accenture as it approaches its next earnings release, which is expected to be June 23, 2022. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.80 per share and revenue of $62.08 billion. These totals would mark changes of +22.73% and +22.85%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Accenture. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Accenture is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 28.16 right now. This represents a premium compared to its industry's average Forward P/E of 20.32.

It is also worth noting that ACN currently has a PEG ratio of 2.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Consulting Services was holding an average PEG ratio of 1.37 at yesterday's closing price.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.

To follow ACN in the coming trading sessions, be sure to utilize Zacks.com.


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