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Accenture (ACN) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, Accenture (ACN - Free Report) closed at $330.37, marking a +0.28% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq lost 0.34%.

The the stock of consulting company has fallen by 0.62% in the past month, lagging the Computer and Technology sector's gain of 0.96% and the S&P 500's gain of 1.93%.

Analysts and investors alike will be keeping a close eye on the performance of Accenture in its upcoming earnings disclosure. The company's earnings report is set to go public on September 26, 2024. The company is predicted to post an EPS of $2.77, indicating a 2.21% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.31 billion, up 2.05% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.95 per share and a revenue of $64.79 billion, indicating changes of +2.4% and +1.06%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Accenture is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Accenture currently has a Forward P/E ratio of 27.57. Its industry sports an average Forward P/E of 28.4, so one might conclude that Accenture is trading at a discount comparatively.

Meanwhile, ACN's PEG ratio is currently 3.67. 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. The average PEG ratio for the Computers - IT Services industry stood at 3.01 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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