Accenture plc (ACN) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about ACN stock:

  • Is ACN a buy or a sell?
  • Should I sell or hold ACN stock today?
  • Is ACN a good buy / a good investment?
  • What are ACN analyst opinions, recommendations, ratings?

Here are ACN stock buy reasons/signals:

1. Accenture works with the globe’s largest and most progressive multinational corporations, which allows it to gain early insight into the most necessary challenges facing businesses and keeps it in a market-leading position.

2. The company produces a substantial amount of free cash and we expect healthy shareholder distributions for the foreseeable future.

3. Cloud, mobility, and analytics are expected to drive enterprise IT spending priorities in the short to mid-term.

4. ACN forward dividend yield is 1.80%, higher than the industry (0.38%) and sector (0.47%) forward dividend yields.

5. ACN average analyst rating is Buy.

Here are ACN stock sell reasons/signals:

1. With over half of group revenues generated offshore, Accenture is exposed to meaningful foreign exchange rate risk.

2. The IT services industry remains highly competitive, so Accenture must continually offer its clients the best value while retaining its most important people.

3. Referenceability is a crucial part of Accenture’s success. Poor client outcomes may lead to reputation damage and fewer bookings.

4. ACN stock price ($137.86) is close to the 52-week high ($138.00). Perhaps now is a good time to sell?

5. ACN forward P/E ratio is 20.74, and it’s high compared to its industry peers’ P/E ratios.

6. ACN Price/Book ratio is 10.12, and it’s high compared to its industry peers’ P/B ratios.

7. ACN average analyst price target ($132.79) is below its current price ($137.86).

8. ACN short interest (days to cover the shorts) ratio is 3.98. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ACN?

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