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Accenture (ACN) Dips More Than Broader Markets: What You Should Know

Accenture (ACN) closed at $289.22 in the latest trading session, marking a -1.66% move from the prior day. This move lagged the S&P 500's daily loss of 1.04%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 5.88%.

Prior to today's trading, shares of the consulting company had gained 11.83% over the past month. This has lagged the Business Services sector's gain of 12.29% and outpaced the S&P 500's gain of 8.97% in that time.

Investors will be hoping for strength from Accenture as it approaches its next earnings release. In that report, analysts expect Accenture to post earnings of $2.48 per share. This would mark a year-over-year decline of 2.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.52 billion, up 3.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.45 per share and revenue of $64.25 billion. These totals would mark changes of +6.91% and +4.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Accenture. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. Accenture is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Accenture has a Forward P/E ratio of 25.69 right now. This represents a premium compared to its industry's average Forward P/E of 21.89.

Meanwhile, ACN's PEG ratio is currently 2.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACN's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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