Why Accenture Is Poised to Bounce Back

Why Accenture Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global consulting giant Accenture has earned a respected four-star ranking.

With that in mind, let's take a closer look at Accenture and see what CAPS investors are saying about the stock right now.

Accenture facts

Headquarters (founded)

Dublin, Ireland (1995)

Market Cap

$46.8 billion


IT consulting and other services

Trailing-12-Month Revenue

$28.2 billion


CEO Pierre Nanterme (since 2011)

CFO Pamela Craig (since 2006)

Return on Equity (average, past 3 years)



$5.9 billion / $0

Dividend Yield




Computer Sciences


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,350 members who have rated Accenture believe the stock will outperform the S&P 500 going forward.

Just last week, fellow Fool Simon Erickson (TMFInnovator) tapped the company's recent earnings miss as an attractive buy-in opportunity:

Accenture missed Rev guidance, largely due to weakness in Brazil and Europe and fewer big projects, which caused shares to drop 11%. I'm not sure why this miss was so shocking, really. The current market uncertainty is influencing companies' IT/consulting spend, which effected ACN's short-term results.

Looking bigger picture though, ACN is in a great position to outperform:
-Their focus on data analytics and cloud computing are fast-growing markets to be competing in.
-Their reputation is phenomenal. They focus is on long-term relationship building, which allows for recurring revenues and a sticky customer base. ...
-They are one of the few consulting firms to also offer to deploy IT and hardware solutions. ...
-They have an asset-light model that allows them to return profits to shareholders. They have tripled their annual dividend in the last five years.

Accenture has outperformed the market in 8 of the last 10 years. I would expect them to do more of the same in the future.

Solid companies selling at depressed prices have consistently helped generations of the world's most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns. For one such company, read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.

The article Why Accenture Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Accenture. The Motley Fool owns shares of International Business Machines.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.