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Accenture (ACN) Stock Sinks As Market Gains: Here's Why
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Accenture (ACN - Free Report) closed the latest trading day at $281.76, indicating a -0.19% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.56%.
Prior to today's trading, shares of the consulting company had lost 7.05% over the past month. This has lagged the Business Services sector's gain of 1.75% and the S&P 500's gain of 5.06% in that time.
The investment community will be paying close attention to the earnings performance of Accenture in its upcoming release. The company is slated to reveal its earnings on June 20, 2024. On that day, Accenture is projected to report earnings of $2.65 per share, which would represent a year-over-year decline of 16.93%. In the meantime, our current consensus estimate forecasts the revenue to be $16.57 billion, indicating a 0.01% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.09 per share and revenue of $65.31 billion. These totals would mark changes of +3.6% and +1.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Accenture. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed an unchanged state. Accenture currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 23.34. This indicates a premium in contrast to its industry's Forward P/E of 22.65.
One should further note that ACN currently holds a PEG ratio of 3.06. 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 average PEG ratio for the Consulting Services industry stood at 1.43 at the close of the market yesterday.
The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Stock Sinks As Market Gains: Here's Why
Accenture (ACN - Free Report) closed the latest trading day at $281.76, indicating a -0.19% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.56%.
Prior to today's trading, shares of the consulting company had lost 7.05% over the past month. This has lagged the Business Services sector's gain of 1.75% and the S&P 500's gain of 5.06% in that time.
The investment community will be paying close attention to the earnings performance of Accenture in its upcoming release. The company is slated to reveal its earnings on June 20, 2024. On that day, Accenture is projected to report earnings of $2.65 per share, which would represent a year-over-year decline of 16.93%. In the meantime, our current consensus estimate forecasts the revenue to be $16.57 billion, indicating a 0.01% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.09 per share and revenue of $65.31 billion. These totals would mark changes of +3.6% and +1.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Accenture. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed an unchanged state. Accenture currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Accenture is presently being traded at a Forward P/E ratio of 23.34. This indicates a premium in contrast to its industry's Forward P/E of 22.65.
One should further note that ACN currently holds a PEG ratio of 3.06. 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 average PEG ratio for the Consulting Services industry stood at 1.43 at the close of the market yesterday.
The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.