The Tech sector is expected to continue playing its growth role in 2025 Q3, with total earnings for the sector expected to be up +11.8% on +12.5% higher revenues.
Accenture is upgraded to Buy, as market pessimism has driven its valuation to decade lows despite strong fundamentals. The recent sell-off is overdone; Accenture's revenue growth is accelerating, free cash flow per share is at record highs, and EPS is rising. Concerns over U.S. government spending cuts and new bookings are overstated, with management guiding for continued revenue and earnings growth.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Accenture (ACN) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
In the latest trading session, Accenture (ACN) closed at $255.88, marking a +2.71% move from the previous day.
I rate Accenture a Buy with a 2-3 year horizon, citing undervaluation versus its historical multiples and a resilient long-term business moat. Accenture's Reinvention Services reorganization and GenAI momentum are key catalysts for topline acceleration and potential multiple expansion as AI demand grows. Risks include persistent federal business setbacks, continued slowdown in bookings, and execution stumbles, which could pressure valuation and growth outlook.
Accenture's fundamentals remain strong, with Q3 revenue growth accelerating and full-year guidance raised for key metrics despite some demand headwinds. Profitability and cash flows are robust, with operating margin improvement, double-digit EPS growth, and significant increases in both dividends and share buybacks. Valuation has become even more attractive, with the forward P/E ratio near multi-year lows and a substantial discount to the IT sector average.
Accenture said on Thursday it will buy Australian cybersecurity firm CyberCX in its largest-ever deal in the sector, with the Australian Financial Review valuing the transaction at more than A$1 billion ($650 million).
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Accenture (ACN) reached $241.72 at the closing of the latest trading day, reflecting a -2.35% change compared to its last close.
Recently, Zacks.com users have been paying close attention to Accenture (ACN). This makes it worthwhile to examine what the stock has in store.
Accenture (ACN) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.