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Accenture plc (ACN), headquartered in Dublin, Ireland, is a leading global professional services company specializing in consulting, technology, and outsourcing services. With a market cap of $215.58 billion, Accenture is a major player in the business services sector, providing a wide range of solutions, including digital transformation, cloud services, and cybersecurity, to clients across various industries.
Competing with another consulting giant, International Business Machines Corporation (IBM), Accenture focuses on driving innovation, enhancing client experience, and delivering value through cutting-edge technology and strategic expertise to help organizations navigate the complexities of the global business landscape.
Companies valued at $200 billion or more are classified as "mega-cap" stocks, and Accenture plc rightly fits into this category, underscoring its substantial scale, stability, and impact in the global professional services sector. As one of the foremost consulting and technology services firms worldwide, Accenture exemplifies the strength and versatility of a mega-cap company, driven by its extensive range of digital, cloud, and strategic consulting services, strong market presence, and commitment to innovation and delivering value to clients across various industries.
ACN shares are trading 12% below their 52-week high of $387.51, which they hit on Mar. 7. The stock has gained 17.5% over the past three months, significantly outperforming the broader S&P 500 Index ($SPX), which has gained 2.8% over the same time frame.
In the longer term, ACN is down 2.8% on a YTD basis. However, the shares have gained 4.5% over the past 52 weeks. In comparison, the SPX has gained 15.4% in 2024 and rallied 22.4% over the past year.
To confirm its bullish trend, ACN has been trading above its 50-day moving average since mid-August. However, it is trading below the 200-day moving average since late March.
On Jun. 20, ACN shares closed up more than 7% after reporting its Q3 results. Its bookings of $21.1 billion were well above the consensus estimates of $17.7 billion. However, its adjusted EPS of $3.13 missed Wall Street's expectation of $3.14, and its revenue of $16.47 billion fell short of the $16.52 billion forecast.
Also, on Jul. 10, ACN shares closed down marginally after the acquisition of Cientra, a U.S. company with expertise in embedded IoT and microprocessor design, in which the terms of the deal were not disclosed, which led to a slightly negative reaction from investors.
Highlighting the contrast in performance, ACN's competitor, IBM, has significantly outperformed the stock and the SPX. IBM has gained 23.9% on a YTD basis.
Given the stock's strong recent price performance, analysts are moderately optimistic about ACN's prospects. The stock has a consensus rating of "Moderate Buy" from 26 analysts. The mean price target of $345.71 reflects a 1.4% premium over current levels.
On the date of publication, Rashmi Kumari 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.
