Accenture Ltd. (NYSE:ACN)

CAPS Rating: 5 out of 5

The Company is a management consulting, technology services and outsourcing organization.

Recs

0
Player Avatar TMFInnovator (54.71) Submitted: 6/28/2013 12:58:54 PM : Outperform Start Price: $68.93 ACN Score: -7.45

Classic market overreaction this morning.

Accenture missed Rev guidance, largely due to weakness in Brazil and Europe and fewer big projects, which caused shares to drop 11%. I'm not sure why this miss was so shocking, really.. The current market uncertainty is influencing companies' IT/consulting spend, which effected ACN's short-term results.

Looking bigger picture though, ACN is in a great position to outperform:
- Their focus on data analytics and cloud computing are fast-growing markets to be competing in.
- Their reputation is phenomenal. They focus is on long-term relationship building, which allows for recurring revenues and a sticky customer base. 92 of their top 100 clients have worked with them for longer than 10 years.
- They are one of the few consulting firms to also offer to deploy IT and hardware solutions. This further embeds them with their clients' needs.
- They have an asset-light model that allows them to return profits to shareholders. They have tripled their annual dividend in the last five years.

Accenture has outperformed the market in 8 of the last 10 years. I would expect them to do more of the same in the future.

Member Avatar pro505050 (52.62) Submitted: 8/12/2013 12:03:43 PM
Recs: 0

This is set to outperform. Buy now

Featured Broker Partners


Advertisement