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Monday, September 21, 2020

Accenture plc (NYSE:ACN) Stock is Plummeting, Here is Why

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The Accenture plc (ACN) shares are trading at lower $221.44 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $224.88.

To add more color to this target, the company’s high over the last year is $225.74 and the low is $137.15. Over the last 52 weeks, ACN is down -1.90% while the S&P 500 is down -0.64%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ACN reported a profit of $3.53 billion. Accenture plc also saw revenues increase to $10.99 billion. In addition, ACN has free cash flow of $4.65 billion as of 05-2020. The company’s EBITDA came in at $2.16 billion which compares well with its peers.

ACN booked profit margins of 11.10%, its Return on Equity (ROE) is 32.40%, and its Return on Assets is 15.10%. All told, it is clear that, ACN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ACN has a short ratio of 2.95 and outstanding shares of 636.15M.

Company Outlook

ACN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.55 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 7.68. Accenture plc ACN also noted assets of $35.06 billion at the end of the last quarter. Investors should also keep an eye on sector updates as ACN has historically followed its peers on positive news.

All told, Accenture plc ACN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ACN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Accenture plc ACN is now commanding a market cap of 147.54B and a float of 635.11M. ACN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ACN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ACN, either long or short, and we have not been compensated for this article.

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