Accenture (ACN) Earns High Rating from Warren Buffett Model

Accenture PLC (ACN) scores an impressive 86% rating under the Warren Buffett 'Patient Investor' model, indicating strong fundamentals and attractive valuation. This reflects positively on ACN's future stock performance potential.

Date: 27-05-2025

AI Rating: 8

Accenture PLC (ACN) Analysis

According to the report, Accenture PLC shines in various fundamental aspects that are highly regarded by professional investors, particularly those following the investment philosophies of Warren Buffett.

Strong Earnings Predictability & ROE

ACN has passed the earnings predictability test. This indicates stability in earnings over time, which is a key consideration for risk-averse investors. Additionally, a strong Return on Equity (ROE) suggests that ACN is efficiently generating profit relative to shareholders' equity, enhancing its attractiveness as a potential investment.

Robust Free Cash Flow

The company has also passed the free cash flow metric. Free Cash Flow (FCF) is critical as it signifies that the company has capital available to reinvest, pay dividends, or buy back shares, which can support stock price appreciation.

Given these strong fundamentals, professional investors are likely to view ACN favorably in light of its capacity for delivering shareholder returns. The combination of predictable earnings, low debt service, and strong profit metrics positions ACN as a resilient stock amid broader market uncertainties.

With these factors taken into account, the likelihood of stock price appreciation over a 1 to 3 month holding period seems likely, making it a potential buy for investors looking to capitalize on growth opportunities in the Computer Services sector.

Stocks: ACN