Accenture stock: buy or sell?

ACN stock price: $194.28 -0.53% At close on July 16th, 2019

Updated on:
July 16th, 2019

5

Accenture depreciated -0.53% to $194.28 after marking all time highs yesterday.

Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, and enhance business results through industry-specific solutions for communications, media, and high tech industries, as well as for software platforms.

Should I buy Accenture stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups work for Accenture stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Accenture stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 15 ratings published for ACN stock in the last 30 days.

Is ACN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-15Argusn/aBuy
2019-6-28UBS Groupn/aHold
2019-6-28Credit Suisse Groupn/aHold
2019-6-28BMO Capital MarketsMarket PerformPositive
2019-6-20Citigroupn/aBuy
2019-6-20Bank of American/aNeutral
2019-6-13Wells Fargo & CoOutperformIn-Line
2019-6-10Deutsche Bankn/aBuy
2019-5-3Bank of AmericaBuyNeutral
2019-4-1Berenberg Bankn/aBuy
2019-3-29William Blairn/aOutperform
2019-3-29SunTrust Banksn/aHold
2019-3-29Robert W. Bairdn/aNeutral
2019-3-29Robert W. BairdNeutralNeutral
2019-3-29Morgan StanleyOverweightOverweight

Accenture stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, Accenture depreciated -0.53% to $194.28.

Accenture depreciated -0.53% to $194.28 after yesterday all time highs. On May, SMA100d and SMA200d crossed up triggering a rise of 13.60%. Yesterday, ACN hit new all time highs, pushing higher previous ATH of $196.23 recorded on Friday. New ATHs are usual entry points for many trading setups as there aren't higher resistences. On June/4 ACN price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

ACN stock chart (daily)

Weekly outlook

Accenture shares topped new all time highs back again this week, setting highs to $196.36. Shares closed at $194.28 and slightly fell -0.98% during the week.

ACN shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late June, ACN climbed unceasignly breaking out to new all time highs. Since SMA20d and SMA40w crossed up early May, ACN price climbed $17.30 per share (9.78%). Since mid February when ACN stock price broke up the SMA40w line, it gained $39.97 (25.90%).

ACN stock chart (weekly)

Accenture stock price history

Accenture IPO was on July 19th, 2001 at $11.44 per share1. Since then, ACN stock grew a 1,598.30%, with an average of 94.00% per year. If you had invested right after ACN's IPO a $1,000 in Accenture stock in 2001, it would worth $15,983.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Accenture stock historical price chart

ACN stock reached all-time highs yesterday with a price of $196.36.

Accenture stock price target is $191.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 13 price targets for ACN stock:
ACN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-15ArgusRaises Targetn/a$220.00-
2019-6-28UBS GroupSet Price Targetn/a$190.00-
2019-6-28Credit Suisse GroupSet Price Targetn/a$180.00-
2019-6-28BMO Capital MarketsRaises Target$185.00$195.005.4%
2019-6-20CitigroupRaises Target$194.00$211.008.8%
2019-6-20Bank of AmericaRaises Target$182.00$186.002.2%
2019-6-13Wells Fargo & CoReiterates$193.00$200.003.6%
2019-6-10Deutsche BankRaises Target$180.00$190.005.6%
2019-4-1Berenberg BankReiteratesn/a$190.00-
2019-3-29SunTrust BanksRaises Targetn/a$180.00-
2019-3-29Robert W. BairdReiteratesn/a$182.00-
2019-3-29Robert W. BairdRaises Target$174.00$182.004.6%
2019-3-29Morgan StanleyRaises Target$178.00$184.003.4%
(in average)$183.70$191.504.0%
Moving in a range from $220.00 and $180.00, the price forecast for Accenture stock is $191.50. In average, analysts' outlook on ACN price forecast is positive, improving the forecast by a 4.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Accenture presented beatiful results for 2019-Q1 on March. Accenture rose Earnings per Share (EPS) by 10.20%, beating analysts of $1.57. Accenture posted $1.73.
ACN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.66n/a
2017-Q3-n/a1.47n/a
2017-Q42018-03-221.491.586.0%
2018-Q12018-03-221.51.585.3%
2018-Q22018-06-281.711.794.7%
2018-Q32018-09-271.551.581.9%
2018-Q42018-12-201.841.966.5%
2019-Q12019-03-281.571.7310.2%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Accenture annual sales skyrocketed an exceptional 13.16% to $41,603.40 million USD from $36,765.50 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) stayed stable a 0.39% to 9.76%.

Accenture fiscal year ends in August, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Accenture TTM sales up to February 2019 were $42,540.70 and income $4,471.71 M USD. If we compare this TTM figures with the last reported annuality, we can review Accenture business evolution since August 2018: Annual turnover up to February, compared to lastest yearly report, grew a tiny 2.25%. Nevertheless, profit margin (net income/revenues) remained steady at 9.76%.

ACN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$30,390 M-$3,280 M10.8%-
2014$31,870 M4.87%$2,940 M9.2%-10.37%
2015$32,914 M3.28%$3,054 M9.3%3.86%
2016$34,798 M5.72%$4,112 M11.8%34.66%
2017$36,766 M5.65%$3,445 M9.4%-16.21%
2018$41,603 M13.16%$4,060 M9.8%17.84%
TTM $42,541 M2.25%$4,472 M10.5%10.14%

Quarterly financial results

Accenture posted $10,454.10 M in sales for 2019-Q1, a -1.43% less compared to previous quarter. Reported quarter earnings marked $1,124.45 million with a profit margin of 10.76%. Profit margin declined a -1.26% compared to previous quarter when profit margin was 12.02%. When comparing sales to same quarter last year, Accenture sales marked a fine gain and stepped up a 3.84%. Looking back to recent quarterly results, Accenture posted 3 negative quarters in a row.
ACN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$9,360 M-$669 M7.2%-
2017-Q3$9,640 M2.99%$932 M9.7%39.28%
2017-Q4$10,055 M4.30%$1,124 M11.2%20.51%
2018-Q1$10,068 M0.13%$864 M8.6%-23.13%
2018-Q2$10,839 M7.66%$1,043 M9.6%20.76%
2018-Q3$10,642 M-1.81%$1,030 M9.7%-1.29%
2018-Q4$10,606 M-0.34%$1,275 M12.0%23.82%
2019-Q1$10,454 M-1.43%$1,124 M10.8%-11.79%

Accenture ownership

When you are planning to invest in a stock, it's worth to check its ownership structure.

Accenture shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.23% of all shares.

In case of Accenture stock, 72.46% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ACN stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Accenture:

ACNCTSHDXCERICG
Market cap$119.8 B$37.5 B$15.2 B$0.0 M$7.4 B
Total shares616.7 M569.3 M266.4 M0.0 M190.4 M
Float shares635.9 M567.4 M267.5 M2,800.0 M149.8 M
  - Institutional holdings (%)72.5%92.7%88.3%221.9%62.2%
  - Insider holdings (%)0.2%0.2%0.4%0.0%0.6%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Accenture summary

Tuesday, July 16th, 2019
Open$195.15
Close$194.28
Day range$193.40 - $195.58
Previous close$195.32
Session gain-0.53%
Average true range$2.54
50d mov avg$182.68
100d mov avg$176.69
200d mov avg$165.62
Daily pattern
Weekly pattern lb03c

Accenture performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Accenture performance to Cognizant Technology Solutions, DXC Technology, , Genpact, International Business Machines, Infosys, Nokia, and Wipro:
Stock3m6m12m
ACNAccenture8.77%30.21%18.71%
CTSHCognizant Technol...-7.43%-2.36%-19.03%
DXCDXC Technology-11.42%-8.37%-33.74%
ERIC-4.85%13.85%18.04%
GGenpact7.63%32.87%27.82%
IBMInternational Bus...3.35%18.49%2.62%
INFYInfosys12.20%9.94%18.43%
NOKNokia-10.78%-15.07%-13.05%
SAP21.24%29.52%17.66%
WITWipro-4.78%-21.58%-19.92%

Accenture competitors

One check before trading any stock is to review a list of its competitors, in this case for Accenture. We chose 9 companies as Accenture competitors as they are in the same industry or have similar market objectives.

Latest Accenture stock news