Is Accenture Stock Poised for a Rally?

Here is why we think Accenture (ACN) stock deserves consideration as a value stock. It is currently trading nearly 37% 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.

Accenture’s strategic pivot into generative and agentic AI is fundamentally reshaping its growth, with GenAI revenue tripling to $2.7 billion in FY2025 and bookings nearly doubling to $5.9 billion. This aggressive $3 billion multi-year investment and recent acquisitions, like October’s Decho, fuel robust enterprise digital transformation demand. Despite a challenging macro environment, the company posted $69.7 billion in FY2025 revenue and $80.6 billion in bookings, demonstrating continued market share expansion for its high-value services.

Let’s talk numbers

• 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 large margin collapse in the last 12 months.
• Modest Valuation: Despite encouraging fundamentals, ACN stock trades at a PE multiple of 19.9

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.

Asset allocation is a smarter path than stock picking. The asset allocation strategies of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. And now, Trefis High Quality Portfolio is part of it.

*LTM: Last Twelve Months

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
• Strategy consistent across market cycles.

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.