Accenture PLC Receives High Rating from Growth Investor Model

Accenture PLC has achieved a 77% rating from the Growth Investor model, signaling strong underlying fundamentals and stock valuation. Despite some weaknesses in long-term earnings growth, the performance metrics suggest positive investor sentiment.

Date: 20-12-2024

AI Rating: 6

Accenture PLC (ACN) has recently been analyzed using various guru strategies, achieving a rating of 77% based on the Growth Investor model. This score reflects strong underlying fundamentals and an appealing valuation. In this evaluation, several key metrics are highlighted:

P/E Ratio: The stock passes this criterion, which generally indicates that the earnings are appropriately valued in relation to the stock price.
Revenue Growth in Relation to EPS Growth: It also passes this test, implying that revenue is growing proportionately to earnings per share, which is a positive sign for sustaining profitability.
Sales Growth Rate: Another positive result, suggesting that the company is successfully expanding its revenue base.
Current Quarter Earnings: The stock passes this metric, indicating a robust earnings performance in the recent quarter.
Quarterly Earnings One Year Ago: Another pass indicates consistency in earnings performance year-over-year.
Positive Earnings Growth Rate for Current Quarter: The company displays a positive earnings growth rate for the current quarter.
EPS Growth for Current Quarter must be Greater than Prior 3 Quarters: This metric is also a pass, showing improvement in earnings on a quarter-over-quarter basis.
EPS Growth for Current Quarter must be Greater than Historical Growth Rate: Passing this metric indicates that current performance exceeds past performance, which is a good signal.
Earnings Persistence: The stock demonstrates consistent earnings over time, which is favorable for investors.
Total Debt/Equity Ratio: A pass here suggests a manageable level of debt relative to equity, indicating financial stability.
Insider Transactions: Positive indication, suggesting confidence from insiders in the company’s future performance.

However, there are weaknesses noted in the evaluation:

Earnings Growth Rate for the Past Several Quarters: This is a fail, indicating some concerns regarding consistent earnings growth.
Long-Term EPS Growth: Another fail which could be a concern for long-term investors seeking reliable growth patterns.

Overall, the combination of strong performance in many areas, coupled with the weaknesses in long-term growth potential, sets a mixed tone for investors. Although the current fundamentals support investment, the failures in long-term metrics may cause caution among more risk-averse investors.

Stocks: ACN