Accenture (ACN) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] - The Momentum Score assists investors in capitalizing on price trends by evaluating short-term price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - With over 800 top-rated stocks available, the Style Scores help investors narrow down their choices to those with the highest likelihood of success [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for purchase, while those with a 3 (Hold) rank should also have favorable Style Scores to maximize upside potential [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) are less favorable, even if they have high Style Scores, due to their negative earnings outlook [10] Company Spotlight: Accenture (ACN) - Accenture is a leading consulting firm with a revenue increase of 1.2% in fiscal 2024, attributed to investments in digital, cloud, and security strategies [11] - Currently rated 3 (Hold) by Zacks, Accenture has a VGM Score of B and a Value Style Score of B, supported by a forward P/E ratio of 18.67 [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate of $12.88 per share, along with an average earnings surprise of +3%, make Accenture a noteworthy consideration for investors [12]