Accenture ACN performed well in the past six months and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 32.4% in the past six months compared with 31.6% rise of the industry it belongs to.
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Solid Rank: Accenture currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy) offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: For 2022, 11 estimates have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up 4.2% in the past 60 days.
Positive Earnings Surprise History: Accenture has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 5.3%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $10.54, which reflects year-over-year growth of 19.8%. Earnings are expected to register 10.5% growth in 2023. The company’s long-term expected earnings per share (EPS) growth rate is at 10%.
Driving Factors: Acquisitions have been one of Accenture’s key growth strategies. The buyouts have enabled the company to enter new markets, diversify and broaden its product portfolio, and maintain its leading position. Recently, the company acquired Tambourine, which is expected to boost Accenture’s suite of sales and commerce transformation services from product and platform engineering to omnichannel delivery of commerce experiences. The buyout of T.A. Cook is expected to help Accenture boost asset performance, enhance safety and reduce the environmental impact and expenses in the chemicals, life sciences, metals and mining as well as oil and gas industries.
ACN’s cash and cash equivalent balance of $5.64 billion at the end of first-quarter fiscal 2022 was above the long-term debt level of $55.9 million, underscoring that the company has enough cash to meet its debt burden. A strong cash position helps the company to pursue strategic acquisitions, invest in growth initiatives and return cash through regular quarterly dividend payouts and share repurchases.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Avis Budget CAR, Cross Country Healthcare CCRN and CRA International CRAI.
Avis Budget has an expected revenue growth rate of around 69.8% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 448.4% in the past year. It has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected revenue growth rate of around 94% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 185% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.
CRA International has an expected revenue growth rate of around 12% for the current year. It has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 71% in the past year. It has a long-term earnings growth of 15.5%. CRAI carries a Zacks #2 (Buy) Rank.
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Accenture PLC (ACN): Free Stock Analysis Report
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Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.