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Why the Market Dipped But Accenture (ACN) Gained Today

In the latest trading session, Accenture (ACN) closed at $307.11, marking a +1.14% move from the previous day. This change outpaced the S&P 500's 0.27% loss on the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.19%.

Heading into today, shares of the consulting company had lost 4.16% over the past month, lagging the Business Services sector's gain of 5.11% and the S&P 500's gain of 7.34% in that time.

The investment community will be closely monitoring the performance of Accenture in its forthcoming earnings report. The company is forecasted to report an EPS of $3.14, showcasing a 1.57% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $16.57 billion, up 0.01% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.09 per share and revenue of $65.31 billion, which would represent changes of +3.6% and +1.87%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Accenture. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Accenture holds a Zacks Rank of #4 (Sell).

In the context of valuation, Accenture is at present trading with a Forward P/E ratio of 25.11. This valuation marks a premium compared to its industry's average Forward P/E of 23.36.

It is also worth noting that ACN currently has a PEG ratio of 3.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Consulting Services industry stood at 1.42 at the close of the market yesterday.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ACN in the coming trading sessions, be sure to utilize Zacks.com.

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Accenture PLC (ACN) : Free Stock Analysis Report

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