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Core Insights - Accenture's stock has returned -1.9% over the past month, underperforming the Zacks S&P 500 composite's +2% and the Zacks Consulting Services industry's -2% [1] - The future direction of Accenture's stock is uncertain, influenced by both media reports and fundamental factors [1] Earnings Estimates - Accenture is expected to post earnings of $3.14 per share for the current quarter, reflecting a year-over-year change of -1.6% [2] - The consensus earnings estimate for the current fiscal year is $12.09, indicating a year-over-year change of +3.6%, while the next fiscal year's estimate is $12.91, showing a change of +6.8% [3][3] - The Zacks Rank for Accenture is 4 (Sell), indicating potential underperformance in the near term [3] Revenue Growth - The consensus sales estimate for the current quarter is $16.57 billion, indicating no year-over-year change, with estimates of $65.31 billion and $69.34 billion for the current and next fiscal years, reflecting changes of +1.9% and +6.2%, respectively [6] Recent Performance - In the last reported quarter, Accenture generated revenues of $15.8 billion, a year-over-year change of -0.1%, with an EPS of $2.77 compared to $2.69 a year ago [7] - The reported revenues were slightly below the Zacks Consensus Estimate of $15.82 billion, resulting in a surprise of -0.14%, while the EPS surprise was +4.14% [7] Valuation - Accenture's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for determining whether the stock is fairly valued [8] - The Zacks Value Style Score for Accenture is graded C, indicating it is trading at par with its peers [10]

Company Performance - Accenture (ACN) closed at $306.33, reflecting a -0.09% change from the previous day's closing price, underperforming the S&P 500's gain of 0.17% [1] - Over the past month, Accenture's shares have decreased by 5.71%, compared to a loss of 2.38% in the Business Services sector and a gain of 0.17% in the S&P 500 [1] - The upcoming earnings report is expected to show an EPS of $3.14, indicating a 1.57% decline from the same quarter last year, with projected revenue of $16.57 billion, a slight increase of 0.01% year-over-year [1] Earnings Estimates - For the full year, earnings are projected at $12.09 per share and revenue at $65.31 billion, representing increases of +3.6% and +1.87% respectively from the previous year [2] - Changes in analyst estimates are crucial as they reflect the shifting dynamics of short-term business patterns, with positive adjustments indicating a favorable outlook on the company's health and profitability [2] Valuation Metrics - Accenture has a Forward P/E ratio of 25.35, which is higher than the industry average of 24.09, indicating it is trading at a premium [3] - The company has a PEG ratio of 2.91, compared to the industry average PEG ratio of 1.43, suggesting a higher valuation relative to expected earnings growth [3] Industry Context - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [4] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Group 1: Brokerage Recommendations for Accenture - Accenture has an average brokerage recommendation (ABR) of 1.72, indicating a consensus between Strong Buy and Buy, with 60% of recommendations being Strong Buy and 8% being Buy [1][2] - Despite the positive ABR, studies suggest that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [2][3] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five Strong Buy recommendations for every Strong Sell recommendation [2][3] Group 2: Zacks Rank vs. ABR - The Zacks Rank is a quantitative model based on earnings estimate revisions, differing from the ABR which is solely based on brokerage recommendations [4][5] - The Zacks Rank is timely and reflects changes in earnings estimates quickly, while the ABR may not be up-to-date [5] - The Zacks Rank for Accenture is currently 4 (Sell), indicating a decline in earnings estimates and suggesting potential stock price drops [6] Group 3: Investment Considerations - The Zacks Consensus Estimate for Accenture's earnings has remained unchanged at $12.09 over the past month, but analysts show growing pessimism regarding the company's earnings prospects [6] - The combination of the unchanged consensus estimate and the Zacks Rank 4 suggests caution for investors considering Accenture [6]

Overview - Accenture is a leading global professional IT services company with over 721,000 employees serving clients in more than 120 countries, including 89 of the Fortune Global 100 [2] - The company has a strong client base with 99 of its top 100 clients partnering for over 10 years, and it generates three times the revenue of its closest competitors [2] Investment Thesis - IT spending has historically provided high returns and competitive advantages, with the recent AI technology race benefiting Accenture due to its loyal client base and resources for technology development [3] - Accenture's consulting revenues are effectively recurring, as clients find it costly and risky to switch to competitors for maintenance or upgrades [3] AI Market Dynamics - AI technology is in high demand, with a significant increase in mentions during S&P 500 earnings calls, particularly in the energy sector [4] - Accenture's Generative AI bookings grew by $600 million in a quarter, reaching $1.1 billion in the first half of the year, indicating strong momentum in this segment [5] Revenue Growth and Industry Trends - Accenture's Managed Services revenue, which is recurring, grew faster than Consulting Services and accounted for nearly 50% of total revenue in Q2 of fiscal 2024 [8] - The company has maintained a high staff utilization rate of 92%, indicating a stable demand for billable work [8] Acquisitions and Talent Development - Accenture has made $2.9 billion in acquisitions over the last six months, including Udemy, to enhance employee training and expertise in AI [10] - The company aims to build a staff of 80,000 skilled data and AI practitioners by the end of fiscal year 2026, currently having 53,000 [10] Financial Performance - Accenture's revenue for the quarter ended February 2024 was $15.8 billion, flat compared to the previous year, leading to a lowered revenue growth guidance from 2-5% to 1-3% [11][12] - The company has consistently expanded its operating margins over the last decade, with a notable increase of about 500 basis points [27] Market Position and Valuation - Accenture's free cash flow yield is 4.6%, which is around the median of its US-listed peers, indicating a reasonable valuation [32] - The book-to-bill ratio, a leading indicator of revenue potential, remains strong but has been on a downtrend since the end of 2021 [35] Client Spending Behavior - Clients are reallocating budgets from shorter-term projects to larger, transformational projects, which may take longer to translate into revenue [23] - The ongoing need for technology spending remains, as businesses strive to stay competitive despite current economic uncertainties [22]

Group 1: Dividend Growth Stocks - Dividend investors can achieve significant total returns by focusing on stocks that offer a combination of yield and growth [1] - Dividend growth stocks are characterized by their ability to increase dividends annually, even during economic downturns [1] - The Dividend Achievers group includes stocks with at least 10 consecutive years of dividend increases, indicating a growing business with rising earnings [1] Group 2: Accenture (ACN) - Accenture is an information technology company providing consulting, technology, and outsourcing services, serving various industries including finance and healthcare [2] - The company has achieved approximately 10% annual growth in earnings per share since 2010, primarily driven by organic revenue expansion [2] - Accenture has increased its dividend for 13 consecutive years, with a current yield of 1.7% [3] Group 3: Visa (V) - Visa is a leader in digital payments, operating in over 200 countries, and has one of the most successful IPOs in U.S. history [4] - The company processed over 65,000 transactions per second and generated $18 billion in profit for fiscal 2023 [5] - Visa announced a 16% increase in its dividend to $2.08 per share annually and has increased its dividend for 16 years, with a current yield of 0.8% [6] Group 4: Comcast (CMCSA) - Comcast is a media, entertainment, and communications company, reporting in two segments: Connectivity & Platforms and Content & Experiences [6] - For the full year, Comcast reported flat revenue of $121.6 billion, with adjusted EBITDA rising 3.2% to $37.6 billion and adjusted EPS increasing 9.3% to $3.98 [7] - The company has initiated a new $15 billion share repurchase program and increased its dividend by 6.9% to an annual payout of $1.24, with a current yield of 3.2% [7]

Accenture and Oracle expanded their partnership to help clients accelerate their adoption of generative artificial intelligence in the finance organization.The new solutions offered through this collaboration aim to help chief financial officers reinvent financial planning and analysis, optimize operations and fuel growth, the companies said in a Monday (May 6) press release.“Our clients are laser-focused on moving beyond generative AI experimentation to value realization,” Lan Guan, chief AI officer at Acc ...

doomu/iStock via Getty Images In my 10 Dividend Growth Stocks series, I rank a selection of Dividend Radar stocks and present the ten top-ranked stocks for further research and possible investment. Dividend Radar is a weekly automatically generated spreadsheet of dividend growth [DG] stocks with dividend increase streaks of five or more years. To look for interesting candidates, I apply different screens every month to highlight different aspects of dividend growth investing. This month, I'm presenting ...

Accenture (ACN) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this consulting company have returned -5.8% over the past month versus the Zacks S&P 500 composite's -3% change. The Zacks Consulting Services industry, to which Accenture belongs, has lost 5.7% over this period. Now the key question is: Where could the stock be headed in the near term?Although media repor ...

Accenture (ACN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this consulting company have returned -14.3%, compared to the Zacks S&P 500 composite's +0.8% change. During this period, the Zacks Consulting Services industry, which Accenture falls in, has lost 11.5%. The key question now is: What could be the stock's future direction? While media release ...