Should You Buy Accenture Stock After 25% Drop?
Accenture (ACN) stock has fallen by 24.6% in less than a month, from $285.09 on 22nd Jan, 2026 to $214.95 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, ACN stock passes basic quality checks There is only one past instance where it dipped sharply, and returned 88% during the subsequent 12-month period, with peak return reaching 92%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 20.5% |
| 3M | 41.6% |
| 6M | 64.1% |
| 12M | 88.0% |
Historical Dip-Wise Details
ACN had 1 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 92% median peak return within 1 year of dip event
- 360 days is the median time to peak return after a dip event
- 0% median max drawdown within 1 year of dip event
| 30 Day Dip | ACN Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | ACN | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 88% | 92% | 0% | 360 | ||||
| 3232020 | -32% | -32% | 88% | 92% | 0% | 360 | ||
Accenture Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 6.6% | Pass |
| Revenue Growth (3-Yr Avg) | 4.3% | Fail |
| Operating Cash Flow Margin (LTM) | 17.1% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 40.0 | |
| => Cash To Interest Expense Ratio | 36.6 |
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