Is the Market Overlooking Accenture Stock’s Next Move?
Here is why we think Accenture (ACN) stock deserves consideration as a value stock. It is currently trading nearly 36% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it is growing, even though modestly, and has strong margins to go with its low valuation.
- Revenue Growth: 7.4% LTM and 4.2% last 3 year average. Low growth, but this is a margin and value play.
- Strong Margin: Nearly 14.4% 3-year average operating margin.
- No Major Margin Shock: Accenture has avoided any large margin collapse in the last 12 months.
- Modest Valuation: Despite encouraging fundamentals, ACN stock trades at a PE multiple of 20.3
As a quick background, Accenture provides strategy, consulting, technology, and operations services, including application modernization, agile transformation, AI, data management, intelligent automation, and talent and organizational consulting.
Love the ACN stock? Great. But don’t get too attached. Stocks crash. High Quality Portfolio lets you navigate that risk.
| ACN | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | IT Consulting & Other Services | – |
| PE Ratio | 20.3 | 23.6 |
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| LTM* Revenue Growth | 7.4% | 5.4% |
| 3Y Average Annual Revenue Growth | 4.2% | 5.2% |
| LTM Operating Margin Change | 1.2% | 0.3% |
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| LTM* Operating Margin | 14.7% | 18.7% |
| 3Y Average Operating Margin | 14.4% | 18.2% |
| LTM* Free Cash Flow Margin | 15.6% | 13.3% |
*LTM: Last Twelve Months
- Is Wall Street Underestimating Accenture Stock’s Potential?
- Accenture Stock Shares $58 Bil Success With Investors
- Is Wall Street Underestimating Accenture Stock’s Potential?
- Accenture Stock Looks Undervalued, Ready to Move Up?
- Has Accenture Stock Quietly Become a Value Opportunity?
- Is Accenture Stock Poised for a Rally?
But do these numbers tell the full story? Read Buy or Sell ACN Stock to see if Accenture still has an edge that holds up under the hood.
Stocks Like These Can Outperform. Here Is Data
Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.
- Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
- Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
- Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.
But Consider The Risk
That said, Accenture isn’t immune to big drops. It fell about 38% during the Global Financial Crisis, 40% in the 2022 inflation shock, and 33% through the Covid pandemic. The 2018 correction also cut it by 23%. Strong fundamentals matter, but even solid stocks like ACN can take significant hits when the market shakes.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ACN Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.