Accenture PLC Receives High Marks from Growth Investor Model

Accenture PLC (ACN) shines with a 77% rating in the Growth Investor model. The report highlights strong fundamentals, despite some concerns about long-term earnings growth.

Date: 02-03-2025

AI Rating: 7

Stock Performance Indicators
Accenture PLC (ACN) has received a favorable rating of 77% based on the Growth Investor model which considers growth stocks with accelerating earnings and sales growth, solid valuations, and low debt levels. This indicates a substantial interest in the stock from the investment community due to its current valuation metrics.

Revenue Growth and EPS
The report indicates that the stock passes crucial metrics related to revenue growth and earnings per share (EPS) growth. The company demonstrates remarkable performance with its revenue and EPS growth outpacing prior periods. However, the analysis does show some weaknesses: while the current quarter's EPS growth is greater than the previous three quarters and also exceeds historical averages, there are concerns raised about the long-term EPS growth, which has received a fail mark. This inconsistency could imply volatility in the company's future earnings potential.

Debt Levels
ACN also passes the total debt/equity ratio test, signifying robust financial health with low debt levels that could bolster investor confidence. Additionally, positive insider transactions add to the stock's favorable standing. Insider trading can often reflect management's confidence in the company's future prospects.

Investor Sentiment
Overall, the solid score of 77% indicates a positive outlook that is likely to buoy investor interest in Accenture PLC. However, potential investors should consider the performance on long-term EPS growth as a cautionary note amid the generally optimistic evaluations of the stock.

Stocks: ACN