Accenture PLC (ACN): Today's Featured Computer Software & Services 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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole was unchanged today. By the end of trading, Accenture fell $1.66 (-2.1%) to $76.60 on heavy volume. Throughout the day, six million shares of Accenture exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $76.52-$78.17 after having opened the day at $77.89 as compared to the previous trading day's close of $78.26. Other companies within the Computer Software & Services industry that declined today were: Dynamics Research Corporation ( DRCO), down 7.6%, Ninetowns Technology Group Company ( NINE), down 7.5%, Webmedia Brands ( WEBM), down 6.1%, and Netsol Technologies ( NTWK), down 5.6%.
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Accenture plc operates as a management consulting, technology services, and outsourcing company worldwide. Accenture has a market cap of $50.21 billion and is part of the technology sector. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Thursday. 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, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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