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Based in Dublin, Ireland, Accenture plc (ACN) is a global leader in professional services, specializing in digital transformation and consulting across various industries. With a market cap of $193.2 billion, it leverages technology and innovation to help clients drive growth and efficiency in their enterprises.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Accenture fits this criterion perfectly, boasting a market cap exceeding the mark. Accenture's success lies in its strategic investments in digital, cloud, and security services and its ability to cater to Fortune Global 100 and 500 clients across diverse industry segments through comprehensive consulting solutions.
However, the consulting company has fallen 25.7% from its 52-week high of $387.51. Shares of ACN are down 24.9% over the past three months, underperforming the broader Information Technology ETF Vanguard's (VGT) 4.5% gains over the same time frame.
Longer term, ACN is down 17.9% on a YTD basis, lagging behind the VGT's 11.4% gains. Moreover, shares of Accenture have plunged nearly 7.5% over the past 52 weeks, compared to VGT's 27.8% returns over the same time frame.
To confirm the bearish price trend, ACN has been trading below its 50-day moving average since late March and has remained below its 200-day moving average since early April.
ACN's underperformance stems from dwindling demand signals, reduced client spending, sluggish revenue growth from its IT and consulting services, and challenges in booking new business. Moreover, the stock plummeted almost 9.3% on Mar. 21 post-Q2 earnings results triggered by a lower 2024 revenue forecast amid economic uncertainty, reduced client spending on consulting services, sluggish demand for IT services, and layoffs.
To emphasize the stock’s underperformance, top rival International Business Machines (IBM) is still outperforming ACN. IBM shares have gained 25.6% over the past 52 weeks and are up 1.9% on a YTD basis.
Despite its underwhelming price action, analysts are optimistic about ACN's recovery. The stock has a consensus rating of "Moderate Buy" from the 25 analysts covering it, and the mean price target of $379.43 is a premium of 31.7% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
