Is it time to Buy before this week’s earning report Accenture (NYSE:ACN)

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Earnings results for Accenture (NYSE:ACN)

Accenture plc is expected* to report earnings on 09/24/2020 before market open. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 10 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.74. The reported EPS for the same quarter last year was $1.74.

Accenture last released its quarterly earnings results on June 25th, 2020. The information technology services provider reported $1.90 earnings per share for the quarter, topping analysts’ consensus estimates of $1.84 by $0.06. The firm earned $10.99 billion during the quarter, compared to analyst estimates of $10.89 billion. Its quarterly revenue was down 1.0% on a year-over-year basis. Accenture has generated $7.36 earnings per share over the last year and currently has a price-to-earnings ratio of 30.2. Accenture has confirmed that its next quarterly earnings report will be published on Thursday, September 24th, 2020.

Analyst Opinion on Accenture (NYSE:ACN)

24 Wall Street analysts have issued ratings and price targets for Accenture in the last 12 months. Their average twelve-month price target is $233.00, predicting that the stock has a possible upside of 1.02%. The high price target for ACN is $270.00 and the low price target for ACN is $200.00. There are currently 1 sell rating, 7 hold ratings and 16 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Accenture has received a consensus rating of Buy. The company’s average rating score is 2.64, and is based on 17 buy ratings, 7 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $232.78, Accenture has a forecasted upside of 0.9% from its current price of $230.65. Accenture has been the subject of 13 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Accenture (NYSE:ACN)

Accenture has a dividend yield of 1.35%, which is in the bottom 25% of all stocks that pay dividends. Accenture has only been increasing its dividend for 1 years. The dividend payout ratio of Accenture is 43.48%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Accenture will have a dividend payout ratio of 39.26% next year. This indicates that Accenture will be able to sustain or increase its dividend.

Insiders buying/selling: Accenture (NYSE:ACN)

In the past three months, Accenture insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $3,710,958.00 in company stock. Only 0.10% of the stock of Accenture is held by insiders. 73.44% of the stock of Accenture is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Accenture (NYSE:ACN

Earnings for Accenture are expected to grow by 6.82% in the coming year, from $7.63 to $8.15 per share. The P/E ratio of Accenture is 30.19, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.04. The P/E ratio of Accenture is 30.19, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 37.88. Accenture has a PEG Ratio of 2.90. PEG Ratios above 1 indicate that a company could be overvalued. Accenture has a P/B Ratio of 9.90. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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