Trade-Ideas LLC identified

Accenture

(

ACN

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Accenture as such a stock due to the following factors:

  • ACN has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 7.52 mentions/day.
  • ACN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $245.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on ACN:

Accenture plc provides management consulting, technology, and business process outsourcing services worldwide. The stock currently has a dividend yield of 2.1%. ACN has a PE ratio of 21. Currently there are 9 analysts that rate Accenture a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Accenture has been 2.5 million shares per day over the past 30 days. Accenture has a market cap of $61.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.16 and a short float of 1.8% with 4.40 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Accenture as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 21.7%. Since the same quarter one year prior, revenues slightly increased by 0.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ACN's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $1,413.36 million or 3.67% when compared to the same quarter last year. In addition, ACCENTURE PLC has also modestly surpassed the industry average cash flow growth rate of -2.03%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • ACCENTURE PLC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ACCENTURE PLC reported lower earnings of $4.52 versus $4.93 in the prior year. This year, the market expects an improvement in earnings ($4.78 versus $4.52).

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