Accenture (ACN) Stock Slides as Market Rises: Facts to Know Before You Trade

Zacks
04-29

The latest trading session saw Accenture (ACN) ending at $293.25, denoting a -0.05% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw a decrease of 0.1%.

The consulting company's stock has dropped by 3.59% in the past month, exceeding the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29%.

The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company is scheduled to release its earnings on June 20, 2025. It is anticipated that the company will report an EPS of $3.27, marking a 4.47% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $17.18 billion, showing a 4.36% escalation compared to the year-ago quarter.

ACN's full-year Zacks Consensus Estimates are calling for earnings of $12.70 per share and revenue of $68.4 billion. These results would represent year-over-year changes of +6.28% and +5.41%, respectively.

Any recent changes to analyst estimates for Accenture should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. As of now, Accenture holds a Zacks Rank of #3 (Hold).

Investors should also note Accenture's current valuation metrics, including its Forward P/E ratio of 23.1. This valuation marks a premium compared to its industry's average Forward P/E of 16.57.

We can additionally observe that ACN currently boasts a PEG ratio of 2.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ACN's industry had an average PEG ratio of 1.9 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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