Accenture PLC (ACN): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Accenture ( ACN) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 1.4%. By the end of trading, Accenture rose $1.42 (2.1%) to $68.83 on average volume. Throughout the day, 3.1 million shares of Accenture exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $67.34-$68.99 after having opened the day at $67.42 as compared to the previous trading day's close of $67.41. Other companies within the Diversified Services industry that increased today were: China HGS Real Estate ( HGSH), up 146.4%, Stantec ( STN), up 9.6%, Heartland Payment Systems ( HPY), up 9.5%, and Education Management Corporation ( EDMC), up 9.1%.
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Accenture plc operates as a management consulting, technology services, and outsourcing company worldwide. Accenture has a market cap of $42.6 billion and is part of the technology sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Accenture a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet 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, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Cambium Learning Group ( ABCD), down 16.5%, China Yida ( CNYD), down 12.4%, LoJack Corporation ( LOJN), down 11.1%, and Daegis ( DAEG), down 10.1%, were all laggards within the diversified services industry with Dollar Thrifty Automotive Group ( DTG) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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