Accenture stock: buy or sell?

ACN stock price: $192.99 -0.86% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Shares of Accenture ended today at $192.99 and slightly fell a disappointing -0.86%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is ACN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-20Barclaysn/aOverweight
2019-9-12Wells Fargo & CoIn-LineOutperform
2019-9-12Wells Fargo & CoIn-LineOutperform
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

Accenture stock analysis

Daily outlook

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.

ACN stock chart (daily)

Weekly outlook

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%).

ACN stock chart (weekly)

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 $198.50

Nobody 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:
ACN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-20BarclaysInitiatesn/a$228.00-
2019-9-12Wells Fargo & CoReiterates$210.00$200.00-4.8%
2019-9-12Wells Fargo & CoRaises Target$200.00$210.005%
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-
(in average)$192.00$198.503.0%
Moving in a range from $228.00 and $180.00, the price target for ACN stock is $198.50. In average, analysts' outlook on ACN price forecast is positive, increasing the prediction by a 3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Accenture 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.
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

Compared 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%.

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 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.
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 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:

ACNCTSHDXCERICG
Market cap$123.0 B$35.1 B$8.4 B$27.1 B$7.6 B
Total shares637.1 M552.3 M262.0 M3,310.0 M190.5 M
Float shares635.9 M550.0 M260.7 M2,800.0 M162.6 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 selling0.0%0.0%0.0%0.0%0.0%

Accenture summary

Friday, September 20th, 2019
Open$195.05
Close$192.99
Day range$192.45 - $196.22
Previous close$194.67
Session gain-0.86%
Average true range$3.60
50d mov avg$194.19
100d mov avg$187.95
200d mov avg$173.62
Daily patternlb01a
Weekly pattern lb03a

Accenture performance

To 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:
Stock3m6m12m
ACNAccenture4.00%17.76%12.73%
CTSHCognizant Technol...-1.21%-9.87%-17.22%
DXCDXC Technology-40.44%-49.23%-66.00%
ERIC-17.85%-10.78%-5.86%
GGenpact5.33%16.93%30.02%
IBMInternational Bus...3.92%4.96%-0.91%
INFYInfosys8.21%8.11%20.33%
NOKNokia3.72%-7.99%-3.11%
SAP-11.05%8.43%-0.41%
WITWipro-15.74%-9.23%-31.58%

Accenture competitors

One 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.

Latest Accenture stock news