Why Accenture (ACN) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [5] - The Momentum Score evaluates stocks based on recent price changes and earnings estimate trends to identify favorable buying opportunities [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to use Style Scores to narrow down choices [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: Accenture (ACN) - Accenture has established itself as a leading consulting services provider, with a revenue increase of 1.2% in fiscal 2024 [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 17.62 [12] - Recent upward revisions in earnings estimates by six analysts have increased the Zacks Consensus Estimate to $13.78 per share, with an average earnings surprise of +3.2% [12]