Accenture (ACN) closed the most recent trading day at $286.69, moving +0.45% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Heading into today, shares of the consulting company had gained 6.09% over the past month, outpacing the Business Services sector's gain of 6.05% and the S&P 500's gain of 4.7% in that time.
Wall Street will be looking for positivity from Accenture as it approaches its next earnings report date. This is expected to be December 16, 2022. The company is expected to report EPS of $2.91, up 4.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.58 billion, up 4.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.34 per share and revenue of $64.24 billion. These totals would mark changes of +5.88% and +4.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Accenture currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Accenture is currently trading at a Forward P/E ratio of 25.16. For comparison, its industry has an average Forward P/E of 23.37, which means Accenture is trading at a premium to the group.
Also, we should mention that ACN has a PEG ratio of 2.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consulting Services was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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