/Accenture%20plc%20buiding%20with%20logo-by%20JHVEPhoto%20via%20iStock.jpg)
Headquartered in Dublin, Ireland, Accenture plc (ACN) is a global leader in professional services, offering systems integration and application management, security, intelligent platform, and automation services. With a market capitalization of $218.09 billion, the company offers its services globally, aiding clients to build their digital core, transform their operations, and accelerate revenue growth.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and ACN fits right into that category, signifying its substantial size, stability, and dominance in the information technology industry. Serving numerous clients in the Fortune Global 100 and the Fortune Global 500, Accenture has evolved as a trusted and viable consulting services provider through its digital, cloud & security strategy.
However, the consulting giant has fallen 12.5% since hitting its 52-week high of $398.35 on February 5. Moreover, shares of ACN have declined 3.8% over the past three months, compared to the Dow Jones Industrials Average’s ($DOWI) 2% decline over the same time period.
Moreover, ACN shares have gained 3.3% over the past six months but declined 7.8% over the past 52 weeks. By contrast, DOWI has gained 6.7% over the past six months and 12.6% over the past 52 weeks.
ACN has been trading below its 50-day moving average since mid-February but above its 200-day moving average since early July.
Accenture’s underperformance over the past year stems from reduced client spending on non-essential services like consultancy and delayed revenue as companies shift budgets toward long-term priorities.
However, ACN shares jumped 7.1% with its fiscal 2025 Q1 release on Dec. 19. The company reported a 9% year-over-year increase in its revenue and an EPS of $3.59, surpassing the Wall Street EPS estimates by 6.2%.
In the competitive tech sector, Accenture’s top rival, International Business Machines Corporation (IBM), is in the lead, with its shares gaining 27.2% over the past six months and 36.2% over the past 52 weeks.
However, Wall Street analysts remain reasonably bullish on ACN’s prospects. The stock holds a consensus “Moderate Buy” rating from the 25 analysts covering it. The mean target of $403.79 suggests a potential upside of 15.9% from the current market prices.
