This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Accentuating the Positives of Accenture

Plus, let's not forget the Street used similar language following the last quarter's downbeat guidance, citing "weak underlying business trends." Yet, there were no signs of any erosion. I'm not suggesting that investors should ignore the company's guidance. But I don't believe management's revenue range of $7 billion to $7.3 billion for the December quarter is that far off from consensus estimates of $7.39.

I also want to point out that Accenture CEO Pierre Nanterme, who, in my opinion, is a very underrated leader, talked about how the company plans to invest in growth areas like digital marketing, mobility and business process capabilities. The company is looking for ways to differentiate its offerings, while building better leverage.

Unlike Infosys, which has been somewhat "reactionary," Accenture is not waiting for the market to dictate its next course. To the extent that management can adequately respond and execute on these initiatives, not only will Accenture continue to secure more market share from its rivals, the company's analytics and cloud goals will immediately open up new markets against the likes of Oracle and SAP (SAP).

As I've said, no one really knows when IT consulting services, which was once a dominant industry, will regain the Street's confidence. For Accenture, though, which just grew revenue 8% and 2% in the Americas and Europe, respectively, the company has earned the benefit of the doubt.

Make no mistake, there is still plenty of work to be done. I'm encouraged by management's commitment to not only grow the company but also return value to shareholders. With indicators suggesting the underlying market conditions are beginning to stabilize, I believe Accenture deserves a long look. If the company can grow its free cash flow at a reasonable rate of 5% to 6%, this stock should command a fair market value of $90 over the next 12 to 18 months.

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,944.54 +29.47 0.17%
S&P 500 1,966.22 +1.54 0.08%
NASDAQ 4,411.9870 +15.7830 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs