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Accenture plc (ACN)

Accenture stock forecast: buy or sell

Close on Sep 29th, 2020
$224.12 0.01%
3 months performance
0.05%
Published: September 29th, 2020 - 4.13pm EDT

Accenture stock outlook

  • Accenture stock barely moved 0.6% to close at $224.12 on the stock market today, after 3 consecutive sessions in positive.
  • Last Thursday, Accenture made public its Q3 financial report
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $136.04. This uptrend marked a 64.75% gain
  • Barclays posted a buy rating for Accenture yesterday, with a forecast of $245.00
  • Accenture plc provides consulting, technology, and outsourcing services worldwide.

Disclaimer:
The comments expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the particular scenarios of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for learning reasons only

Accenture stock charts

Should I buy Accenture stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ACN stock a buy?

Currently, Accenture stock matches one trading strategy:

Uptrend buy setup

Accenture stock is in an uptrend since last March that so far has marked a gorgeous 65% gain. Price marked a local bottom in this uptrend at $210.42 last Friday, and since then it bounced up a 6.51%. Breaking out over $247.82 - it's last top - will be a good entry point if Accenture resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $223.04

Buy setupBuy pointStop lossRisk
Uptrend buy setup$247.82$223.0410%

Should I sell Accenture stock?

"To sell or not to sell", if you are holding Accenture stock?. Much like when we have to buy shares, determining when is appropiate time to sell is not a capricious decision, and we must adhere our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies should not be used for selling short Accenture stock

A golden rule is that you must never hold an investment that results in losses greater than those expected by the time of the buy. The moment to sell shares always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Accenture stock?

Currently, Accenture stock doesn't match any of our preferred sell setups, so if you own Accenture shares and your operation is in profit probably is not time to sell now

Price lost SMA50 level

Since Accenture crossed up the 50-day simple moving average last April stock rose 33.66%. Last Wednesday, price crossed down the 50-day simple moving average showing that the previous upward trend might have ended. For mid-term investors who have benefited from the stock during the time the price was over the average, this flag should be a heads up and a trigger to sell the stock and cash in on their profits

Analysts' recommendations to buy or sell Accenture stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 13 brokerage ratings were published for Accenture. General sentiment is bullish, with 7 out of 13 publishing optimistic forecasts

Accenture ratings

Brokerage firmRating
Sep 16th, 2020
Bank of America Sell
Sep 16th, 2020
Morgan Stanley Buy
Sep 17th, 2020
Stifel Nicolaus Strong buy
Sep 20th, 2020
Citigroup Strong buy
Sep 21st, 2020
Barclays Buy
Sep 21st, 2020
BMO Capital Markets Neutral
Sep 22nd, 2020
Piper Sandler Neutral
Sep 22nd, 2020
Robert W. Baird Neutral
Sep 22nd, 2020
Wedbush Buy
Sep 25th, 2020
Bank of America Sell
Sep 25th, 2020
BMO Capital Markets
Sep 25th, 2020
JPMorgan Chase & Co. Buy
Sep 28th, 2020
Barclays Buy

Technical analysis

Since last March, Accenture has been drawing an uptrend that so far marked an amazing 64.75%. The chart shows higher peaks and higher lows, and along the way gave some buying opportunities for those who wanted to enter. Latest pullback was last Friday, when price bounced at $210.42. Currently, the price swings in a consolidation between its last top ($247.82) and its last bottom ($210.42)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

ACN SMAs chart

Supports and resistances

Traders use supports and resistances to spot price points in the stock price action that may work as barriers, preventing the price of a stock to move up or down. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until finding another support level. In contrast, resistance levels are where the price tends to find a curb as it rises. Again, this means that the price is more likely to "rebound" at this level, and if it finally crosses this level, it will rise more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $247.82 (10.57% above)
  • The current supports are:

  • S1: $214.63 (-4.23% below)
  • S2: $210.70 (-5.99% below)
  • S3: $210.55 (-6.05% below)
  • Bollinger bands

    So-called Bollinger bands are a well-known technical strategy introduced by John Bollinger. Basically, the Bollinger Bands are bands that run around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price broke down the lower band last Friday, the price rebounded by 6.51%. The price is moving near to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy signal, as price can trade in these levels for many days and weeks

    ACN RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to map the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 in early September after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 42.58. Accenture stock collapsed a 9.33% since RSI lost the overbought zone

    ACN RSI chart

    Earnings and financials

    Accenture hosted the quarterly shareholders call and released the Q3 report last Thursday. The analysts estimate is a an Earnings per Share of $1.73, that is a -6.49% less than last reported quarter. Accenture underperformed analysts estimates and posted earnings of %s a share of $1.70, that is a -1.73% worse than the estimates of $1.73.

    This compares to earnings of $1.74 per share a year ago, so current EPS is a decrease of -2.3%. Looking at revenue, figures scarcely changed compared to $11.1B same quarter 12 months ago.

    Accenture is hosting the quarterly earnings call next December. Market expects earnings of %s per-share of $0.00, compared to Q3 that made $1.70. If you own or you are planning to buy Accenture stock, you must be aware that financial reporting day usually has a very high volatility, and price can jump up or down with very low liquidity and not respecting your buy or stop-loss orders. You can probably find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.accenture.com.

    ACN revenues and profits chart