We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons to Add Accenture (ACN) Stock to Your Portfolio
Read MoreHide Full Article
Accenture plc (ACN - Free Report) has performed extremely well so far this year. The stock appreciated 34.4%, significantly outperforming the 25.7% rally of the industry it belongs to.
So, if you haven’t taken advantage of this share price appreciation yet, we believe it’s time you add this financial transaction services stock to your portfolio as it has the potential to sustain the momentum in the near term.
Here are some of the factors that make it an attractive pick.
Solid Rank & VGM Score: Accenture currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: 12 estimates for 2019 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2019 inched up 0.5%.
Positive Earnings Surprise History: Accenture has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 5.3%.
Strong Growth Prospects: The Zacks Consensus Estimate for fiscal 2019 earnings is currently pegged at $7.33, indicating year-over-year growth of 8.8%. Moreover, earnings are expected to register 8.7% growth in fiscal 2020. The stock has long-term expected earnings per share growth rate of 10.3%.
Growth Drivers
Accenture has been steadily gaining traction in its outsourcing as well as consulting businesses backed by high demand for services that can improve operating efficiencies and save costs.
On the outsourcing front, the company continues to see strong demand to assist clients with the operation and maintenance of digital-related services and cloud enablement. In the first nine months of fiscal 2019, Accenture’s net revenues from outsourcing business increased 6% in U.S. dollars and 9% in local currency.
On the consulting front, the company experiences strong demand for digital, cloud- and security-related services. In the first nine months of fiscal 2019, Accenture’s net revenues from consulting business increased 5% in U.S. dollars and 9% in local currency.
A strong cash position allows Accenture to pursue acquisitions and partnerships that enable continuous enhancement of cloud and digital capabilities, and support the growing demand for services.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector include ICF International (ICFI - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for ICF, Booz Allen and Charles River is 10%, 13% and 13%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
5 Reasons to Add Accenture (ACN) Stock to Your Portfolio
Accenture plc (ACN - Free Report) has performed extremely well so far this year. The stock appreciated 34.4%, significantly outperforming the 25.7% rally of the industry it belongs to.
So, if you haven’t taken advantage of this share price appreciation yet, we believe it’s time you add this financial transaction services stock to your portfolio as it has the potential to sustain the momentum in the near term.
Here are some of the factors that make it an attractive pick.
Solid Rank & VGM Score: Accenture currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: 12 estimates for 2019 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2019 inched up 0.5%.
Positive Earnings Surprise History: Accenture has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 5.3%.
Strong Growth Prospects: The Zacks Consensus Estimate for fiscal 2019 earnings is currently pegged at $7.33, indicating year-over-year growth of 8.8%. Moreover, earnings are expected to register 8.7% growth in fiscal 2020. The stock has long-term expected earnings per share growth rate of 10.3%.
Growth Drivers
Accenture has been steadily gaining traction in its outsourcing as well as consulting businesses backed by high demand for services that can improve operating efficiencies and save costs.
On the outsourcing front, the company continues to see strong demand to assist clients with the operation and maintenance of digital-related services and cloud enablement. In the first nine months of fiscal 2019, Accenture’s net revenues from outsourcing business increased 6% in U.S. dollars and 9% in local currency.
On the consulting front, the company experiences strong demand for digital, cloud- and security-related services. In the first nine months of fiscal 2019, Accenture’s net revenues from consulting business increased 5% in U.S. dollars and 9% in local currency.
Accenture PLC Revenue (TTM)
Accenture PLC revenue-ttm | Accenture PLC Quote
A strong cash position allows Accenture to pursue acquisitions and partnerships that enable continuous enhancement of cloud and digital capabilities, and support the growing demand for services.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector include ICF International (ICFI - Free Report) , Booz Allen Hamilton (BAH - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for ICF, Booz Allen and Charles River is 10%, 13% and 13%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>