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Accenture (ACN) Rises 25% Year to Date: Here's What to Know
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Accenture plc (ACN - Free Report) has had an impressive run year to date. The stock has gained 24.9%, outperforming the 24.3% and 19.2% growth of the industry and S&P 500 composite, respectively.
Reasons Behind the Rally
Accenture’s growth strategy focuses on delivering 360° value to its stakeholders, mainly through the use of technology. The company focuses on long-term growth through building a digital core with the help of cloud, data and AI, technology evolution and investment in talent. We believe this strategy positions it as a trusted partner for its clients.
The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. Its clients prioritize improving productivity and saving operational costs by transforming their operations through data and analytics, automation and artificial intelligence. These trends are boosting Accenture’s managed services business across the world. Managed services revenues increased 11% year over year in fiscal 2023. We expect these revenues to grow 5.4% and 5.5%, respectively, in fiscal 2024 and 2025.
Accenture has a disciplined acquisition strategy focused on channelizing its business in high-growth areas, adding skills and capabilities, and deepening industry and functional expertise. The company spent $2.5 billion across 25 acquisitions in fiscal 2023. The recent acquisition of consulting service provider, ATI Solutions Group, strengthens Accenture’s digital technology and automation capabilities in West Australia. Another acquisition, Anser Advisory, an advisory and management company for infrastructure projects, strengthens Accenture’s capital project capabilities.
The company has a consistent track record of dividend payments. In fiscal 2023, 2022, and 2021, it paid $2.8 billion, $2.5 billion and $2.2 billion in dividends, respectively. Such moves indicate its commitment to returning value to shareholders and underline its confidence in business. We are expecting steady growth in income, which will translate to steady cash flow, enabling it to pay out stable dividends. Per our estimates, the company’s net income will grow 4.9% and 8.6%, respectively, in fiscal 2024 and 2025.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Investors can consider the following better-ranked stocks:
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
Fiserv (FI - Free Report) also carries a Zacks Rank #2. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at $2.15, indicating year-over-year growth of 12.6%.
FI has a decent earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 0.6%.
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Accenture (ACN) Rises 25% Year to Date: Here's What to Know
Accenture plc (ACN - Free Report) has had an impressive run year to date. The stock has gained 24.9%, outperforming the 24.3% and 19.2% growth of the industry and S&P 500 composite, respectively.
Reasons Behind the Rally
Accenture’s growth strategy focuses on delivering 360° value to its stakeholders, mainly through the use of technology. The company focuses on long-term growth through building a digital core with the help of cloud, data and AI, technology evolution and investment in talent. We believe this strategy positions it as a trusted partner for its clients.
The company continues to witness strong demand for application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. Its clients prioritize improving productivity and saving operational costs by transforming their operations through data and analytics, automation and artificial intelligence. These trends are boosting Accenture’s managed services business across the world. Managed services revenues increased 11% year over year in fiscal 2023. We expect these revenues to grow 5.4% and 5.5%, respectively, in fiscal 2024 and 2025.
Accenture PLC Revenue (TTM)
Accenture PLC revenue-ttm | Accenture PLC Quote
Accenture has a disciplined acquisition strategy focused on channelizing its business in high-growth areas, adding skills and capabilities, and deepening industry and functional expertise. The company spent $2.5 billion across 25 acquisitions in fiscal 2023. The recent acquisition of consulting service provider, ATI Solutions Group, strengthens Accenture’s digital technology and automation capabilities in West Australia. Another acquisition, Anser Advisory, an advisory and management company for infrastructure projects, strengthens Accenture’s capital project capabilities.
The company has a consistent track record of dividend payments. In fiscal 2023, 2022, and 2021, it paid $2.8 billion, $2.5 billion and $2.2 billion in dividends, respectively. Such moves indicate its commitment to returning value to shareholders and underline its confidence in business. We are expecting steady growth in income, which will translate to steady cash flow, enabling it to pay out stable dividends. Per our estimates, the company’s net income will grow 4.9% and 8.6%, respectively, in fiscal 2024 and 2025.
Zacks Rank and Stocks to Consider
Accenture currently carries a Zacks Rank #3 (Hold).
Investors can consider the following better-ranked stocks:
Rollins (ROL - Free Report) currently carries a Zacks Rank #2 (Buy). For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents, indicating year-over-year growth of 17.7%.You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
Fiserv (FI - Free Report) also carries a Zacks Rank #2. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at $2.15, indicating year-over-year growth of 12.6%.
FI has a decent earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 0.6%.