Accenture PLC (ACN): Today's Featured Technology Laggard

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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.5%. By the end of trading, Accenture fell 95 cents (-1.4%) to $69.56 on light volume. Throughout the day, 1.6 million shares of Accenture exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $69.33-$70.50 after having opened the day at $70.31 as compared to the previous trading day's close of $70.51. Other companies within the Technology sector that declined today were: Winland Electronics ( WEX), down 19.3%, Kingtone Wirelessinfo Solution ( KONE), down 18.2%, Superconductor Technologies ( SCON), down 17%, and Pactera Technology International ( PACT), down 14.8%.
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Accenture plc operates as a management consulting, technology services, and outsourcing company worldwide. Accenture has a market cap of $45.23 billion and is part of the computer software & services industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 33.1% year to date as of the close of trading on Wednesday. Currently there are 12 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Parametric Sound ( PAMT), up 20.1%, Deltathree ( DDDC), up 19.1%, Clearwire ( CLWR), up 14.9%, and Wireless Ronin Technologies ( RNIN), up 12.5%, were all gainers within the technology sector with Windstream ( WIN) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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