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.
Dublin, Ireland (1995)
IT consulting and other services
CEO Pierre Nanterme (since 2011)
CFO Pamela Craig (since 2006)
Return on Equity (average, past 3 years)
$5.9 billion / $0
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.
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.
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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.
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