- Accenture (ACN) closed at $250.77, marking a 1.26% increase that outpaced both the S&P 500 and the Dow.
- Over the past month, the consulting giant’s shares have gained 3.63%, surpassing its sector and the broader market.
- Analysts are forecasting significant year-over-year growth in Accenture’s upcoming earnings report, with revenue expected to climb to $18.56 billion.
- Positive analyst estimate revisions and a premium valuation signal strong investor confidence, but also suggest high expectations.
Accenture’s Market-Beating Performance Continues
In a strong showing, Accenture (ACN) has once again demonstrated its market prowess, closing the latest trading session at $250.77. This represents a significant 1.26% jump from the previous day, a move that eclipsed the S&P 500’s 1.23% gain and the Dow’s 0.72% rise.
The company’s recent momentum isn’t just a single-day event. Over the past month, Accenture’s shares have climbed an impressive 3.63%. This performance puts it ahead of both the wider Computer and Technology sector, which saw a 3.49% gain, and the S&P 500, which rose by 2.45% in the same period.
Anticipation Builds for Upcoming Earnings
All eyes are now on Accenture as the company prepares to disclose its upcoming earnings. The market is buzzing with anticipation, and for good reason. Analysts are projecting earnings of $3.74 per share, which would signify a healthy 4.18% year-over-year growth. Furthermore, revenue estimates are just as optimistic, with the consensus pointing to $18.56 billion—a nearly 5% increase from the same quarter last year.
Full-Year Projections Signal Sustained Growth
Looking at the broader picture, the forecast for the entire fiscal year remains robust. The Zacks Consensus Estimates project full-year earnings of $13.78 per share and revenue of $73.82 billion. These figures would represent substantial growth of 6.57% and 5.96%, respectively, compared to the prior year.
Analyst Confidence and Valuation Insights
A key driver of this positive sentiment is the recent trend in analyst estimates. Upward revisions often indicate a bullish outlook on a company’s business trends and profitability. In line with this, the Zacks Consensus EPS estimate for Accenture has risen by 1.19% over the past month. Currently, the stock holds a Zacks Rank of #3 (Hold), suggesting a stable outlook.
A Look at the Numbers
From a valuation standpoint, Accenture is trading at a Forward P/E ratio of 17.97, a premium compared to the industry average of 16.65. Additionally, its PEG ratio stands at 2.16. This metric, which factors in expected earnings growth, is also above the industry’s average of 1.82, underscoring the high growth expectations embedded in the stock’s current price.
Positioned within the top 24% of all industries, the Computers – IT Services sector provides a strong backdrop for Accenture’s continued success, reinforcing why investors and analysts alike are watching the company’s every move.
Image Referance: https://finance.yahoo.com/news/accenture-acn-laps-stock-market-215003945.html