Accenture Stock Drop Looks Sharp, But How Deep Can It Go?
Accenture (ACN) stock is down 30.0% in 21 trading days. The recent slide reflects concerns over enterprise IT spending, softer consulting budgets, and AI-driven demand fears, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Accenture stands today.
- Size: Accenture is a $122 Bil company with $71 Bil in revenue currently trading at $196.73.
- Fundamentals: Last 12 month revenue growth of 6.6% and operating margin of 14.4%.
- Liquidity: Has Debt to Equity ratio of 0.07 and Cash to Assets ratio of 0.15
- Valuation: Accenture stock is currently trading at P/E multiple of 16.0 and P/EBIT multiple of 11.6
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 88% within a year. See ACN Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell ACN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ACN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ACN stock falls another 20-30% to $138 – can investors comfortably hold on? Turns out, the stock has been more resilient than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Accenture Stock: Strong Cash Flow Poised for a Re-Rating?
- Accenture Stock: Oversold, Overlooked, and Still Building The AI Enterprise
- Could Accenture Stock’s Cash Flow Spark the Next Rally?
- Accenture Stock Pays Out $39 Bil – Investors Take Note
- Pay Less, Gain More: GIB Tops Accenture Stock
- Stress Testing ACN: Historical Drawdowns and Macro Risks
2022 Inflation Shock
- ACN stock fell 40.7% from a high of $415.42 on 29 December 2021 to $246.17 on 15 March 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $398.25 on 5 February 2025 , and currently trades at $196.73
| ACN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -40.7% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- ACN stock fell 33.5% from a high of $215.92 on 19 February 2020 to $143.69 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 June 2020
| ACN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -33.5% | -33.9% |
| Time to Full Recovery | 94 days | 148 days |
2018 Correction
- ACN stock fell 23.3% from a high of $174.19 on 21 September 2018 to $133.67 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 March 2019
| ACN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.3% | -19.8% |
| Time to Full Recovery | 94 days | 120 days |
2008 Global Financial Crisis
- ACN stock fell 39.1% from a high of $43.81 on 23 July 2007 to $26.67 on 21 April 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 21 April 2010
| ACN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.1% | -56.8% |
| Time to Full Recovery | 365 days | 1,480 days |
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