Accenture stock: buy or sell?
September 20th, 2019
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?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Accenture stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Accenture stock a buy?
Banks and financial institutions publish stock ratings everyday.At Stocks2.com, we collected 15 ratings published for ACN stock in the last month. The general sentiment of these ratings is bullish for ACN stock, with 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-12||Wells Fargo & Co||In-Line||Outperform|
|2019-9-12||Wells Fargo & Co||In-Line||Outperform|
|2019-6-28||Credit Suisse Group||n/a||Hold|
|2019-6-28||BMO Capital Markets||Market Perform||Positive|
|2019-6-20||Bank of America||n/a||Neutral|
|2019-6-13||Wells Fargo & Co||Outperform||In-Line|
|2019-5-3||Bank of America||Buy||Neutral|
Accenture stock analysis
Shares of Accenture ended today at $192.99 and slightly fell a disappointing -0.86%.
Accenture closed today at $192.99 and slightly fell a disappointing -0.86%. ACN is soaring again after a 2.39% correction from its last top on September/12 at $196.23. On May, SMA100d and SMA200d crossed up triggering a rise of 12.85%. On September 6th, ACN hit new all time highs, pushing higher previous ATH of $200.68 recorded on August 30th. New ATHs are usual entry points for many trading setups as there aren't higher resistences. In this session, Accenture stock crossed down the SMA50d line. If you are using SMA50d line as stop loss trigger, double check your position in this stock.
Shares of Accenture depreciated a bad -0.84% this week.
Observing the weekly chart, ACN marked an uptrend of rising tops and rising bottoms. Since its last top early September at $202.80, price slid and bounced up back from $187.89. Breaking down under $187.89 would cancel the current uptrend and it might test lower supports. Note that $202.80 might act as a resistance line. Not so far away is the last price record Accenture marked early September. Early May, SMA20w and SMA40w crossed up triggering a rise of 9.05%. Since mid February when ACN stock price broke up the SMA40w line, it gained $38.68 (25.07%).
Accenture stock price history
Accenture IPO was on July 19th, 2001 at $11.44 per share1. Since then, ACN stock surged a 1,587.00%, with an average of 88.20% per year. If you had invested $1,000 in Accenture stock in 2001, it would worth $15,870.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Accenture stock historical price chart
ACN stock reached all-time highs on September 6th with a price of $202.80.
Accenture stock price target is $198.50Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 30 days we found 13 price forecasts for Accenture stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-12||Wells Fargo & Co||Reiterates||$210.00||$200.00||-4.8%|
|2019-9-12||Wells Fargo & Co||Raises Target||$200.00||$210.00||5%|
|2019-6-28||UBS Group||Set Price Target||n/a||$190.00||-|
|2019-6-28||Credit Suisse Group||Set Price Target||n/a||$180.00||-|
|2019-6-28||BMO Capital Markets||Raises Target||$185.00||$195.00||5.4%|
|2019-6-20||Bank of America||Raises Target||$182.00||$186.00||2.2%|
|2019-6-13||Wells Fargo & Co||Reiterates||$193.00||$200.00||3.6%|
|2019-6-10||Deutsche Bank||Raises Target||$180.00||$190.00||5.6%|
|2019-3-29||SunTrust Banks||Raises Target||n/a||$180.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareAccenture reported good results for 2019-Q1 on March. Accenture escalated Earnings per Share (EPS) by 10.20%, beating experts estimates of $1.57. Accenture posted $1.73.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw an astounding increase of 13.16% to $41,603.40 million USD. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) stayed constant a 0.39% to 9.76%. To have an updated view of the financial situation of Accenture, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Accenture TTM sales up to February 2019 were $42,540.70 and income was $4,471.71 million dollars. If we compare this TTM figures with the last reported annuality, we can review Accenture business evolution since August 2018: Annual sales up to February, compared to lastest yearly report, appreciated a tiny 2.25%. In contrary, profit margin (net income/sales) remained stable at 9.76%.
|2013||$30,390 M||-||$3,280 M10.8%||-|
|2014||$31,870 M||4.87%||$2,940 M9.2%||-10.37%|
|2015||$32,914 M||3.28%||$3,054 M9.3%||3.86%|
|2016||$34,798 M||5.72%||$4,112 M11.8%||34.66%|
|2017||$36,766 M||5.65%||$3,445 M9.4%||-16.21%|
|2018||$41,603 M||13.16%||$4,060 M9.8%||17.84%|
|TTM||$42,541 M||2.25%||$4,472 M10.5%||10.14%|
Quarterly financial resultsAccenture reported $10,454.10 M in sales for 2019-Q1, a -1.43% less compared to previous quarter. Reported quarter earnings marked $1,124.45 M 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 beatiful gain and inched a 3.84%. Looking back to recent quarterly results, Accenture posted 3 positive quarters in a row.
|2017-Q2||$9,360 M||-||$669 M7.2%||-|
|2017-Q3||$9,640 M||2.99%||$932 M9.7%||39.28%|
|2017-Q4||$10,055 M||4.30%||$1,124 M11.2%||20.51%|
|2018-Q1||$10,068 M||0.13%||$864 M8.6%||-23.13%|
|2018-Q2||$10,839 M||7.66%||$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 ownershipWhen you are planning to invest in a company, it's always worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Accenture, 0.23% of all outstanding shares are owned by its staff.
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.
For a better context understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$123.0 B||$35.1 B||$8.4 B||$27.1 B||$7.6 B|
|Total shares||637.1 M||552.3 M||262.0 M||3,310.0 M||190.5 M|
|Float shares||635.9 M||550.0 M||260.7 M||2,800.0 M||162.6 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$192.45 - $196.22|
|Average true range||$3.60|
|50d mov avg||$194.19|
|100d mov avg||$187.95|
|200d mov avg||$173.62|
Accenture performanceTo measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare Accenture to Cognizant Technology Solutions, DXC Technology, , Genpact, International Business Machines, Infosys, Nokia, and Wipro:
Accenture competitorsOne check before trading any stock is to review a list of its competitors, in this case for Accenture. We selected 9 companies as Accenture competitors as they are in the same industry or have similar market objectives.
- Cognizant Technology Solutions (CTSH)
- DXC Technology (DXC)
- Genpact (G)
- International Business Machines (IBM)
- Infosys (INFY)
- Nokia (NOK)
- Wipro (WIT)
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