In the latest market close, Accenture (ACN) reached $361.29, with a +0.73% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.27%.
Shares of the consulting company have depreciated by 0.59% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.27% and the S&P 500's gain of 2.1%.
Investors will be eagerly watching for the performance of Accenture in its upcoming earnings disclosure. In that report, analysts expect Accenture to post earnings of $3.39 per share. This would mark year-over-year growth of 3.67%. At the same time, our most recent consensus estimate is projecting a revenue of $17.21 billion, reflecting a 6.09% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.77 per share and a revenue of $69.02 billion, indicating changes of +6.86% and +6.36%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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.
Investors should also note Accenture's current valuation metrics, including its Forward P/E ratio of 28.08. This signifies a discount in comparison to the average Forward P/E of 30.29 for its industry.
It is also worth noting that ACN currently has a PEG ratio of 3.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.93 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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