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Accenture PLC Scores High in Growth Investor Analysis

Accenture PLC (ACN) receives a solid rating of 77% from Validea's Growth Investor model, indicating strong fundamentals. This positive assessment in key growth criteria could bolster investor confidence in the stock.

Date: 
AI Rating:   7

Accenture PLC Analysis

Accenture PLC (ACN) has shown significant strength according to Validea's Growth Investor model, achieving a rating of 77%. This high score reflects the stock's underlying fundamentals and valuation metrics.

The report highlights several key areas of performance:

  • P/E Ratio: The stock passes this criterion, indicating a reasonable valuation relative to its earnings.
  • Revenue Growth in Relation to EPS Growth: ACN passes this, showing that revenues are increasing in line with earnings per share growth.
  • Sales Growth Rate: The strong sales growth supports the positive outlook for the company.
  • Current Quarter Earnings: The stock passes this test, reflecting solid current earnings.
  • Quarterly Earnings One Year Ago: This is also a pass, suggesting improvement or stability in earnings over the last year.
  • Positive Earnings Growth Rate for Current Quarter: The positive growth rate for the current quarter enhances investor confidence.
  • EPS Growth for Current Quarter Must Be Greater Than Prior 3 Quarters: This condition is met, indicating momentum in earnings growth.
  • EPS Growth for Current Quarter Must Be Greater Than Historical Growth Rate: This is another pass, showcasing the company’s accelerating growth.
  • Earnings Persistence: The stock passes, suggesting reliability in earnings over time.
  • Total Debt/Equity Ratio: The favorable ratio indicates that company leverage is manageable.
  • Insider Transactions: A pass here reflects positive insider sentiment toward the future of the company.

However, there are notable weaknesses in earnings growth. Both the Earnings Growth Rate for the Past Several Quarters and Long-Term EPS Growth failed to meet expectations, which could raise concerns for long-term investors.

Overall, while the strong ratings in various key areas are encouraging for potential investors, the failures in earnings growth could be viewed as red flags that may temper enthusiasm.

Stocks:  ACN