Yahoo Finance Accenture (ACN) Gains As Market Dips: What You Should Know
Accenture (ACN) closed the most recent trading day at $310.61, moving +0.79% from the previous trading session. This change outpaced the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the consulting company had gained 11.68% in the past month. In that same time, the Business Services sector gained 18.72%, while the S&P 500 gained 8.78%.
Accenture will be looking to display strength as it nears its next earnings release, which is expected to be September 22, 2022. In that report, analysts expect Accenture to post earnings of $2.57 per share. This would mark year-over-year growth of 16.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.45 billion, up 15.11% from the year-ago period.
ACN's full-year Zacks Consensus Estimates are calling for earnings of $10.68 per share and revenue of $61.62 billion. These results would represent year-over-year changes of +21.36% and +21.94%, respectively.
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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Accenture is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Accenture is currently trading at a Forward P/E ratio of 28.86. Its industry sports an average Forward P/E of 21.47, so we one might conclude that Accenture is trading at a premium comparatively.
It is also worth noting that ACN currently has a PEG ratio of 2.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consulting Services was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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