Today's Pre-Market Laggard Is Accenture (ACN)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Accenture ( ACN) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Accenture as such a stock due to the following factors:

  • ACN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $223.4 million.
  • ACN traded 21,652 shares today in the pre-market hours as of 8:53 AM.
  • ACN is down 2.1% today from yesterday's close.

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More details on ACN:

Accenture plc provides management consulting, technology, and business process outsourcing (BPO) services worldwide. The company operates through Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources segments. The stock currently has a dividend yield of 2.2%. ACN has a PE ratio of 16.7. Currently there are 9 analysts that rate Accenture a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Accenture has been 2.7 million shares per day over the past 30 days. Accenture has a market cap of $52.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.23 and a short float of 2.7% with 6.27 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Tuesday.

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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, 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.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 20.8%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ACN's debt-to-equity ratio is very low at 0.01 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 1.25, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the IT Services industry and the overall market, ACCENTURE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 266.55% to $181.23 million when compared to the same quarter last year. In addition, ACCENTURE PLC has also vastly surpassed the industry average cash flow growth rate of 20.57%.
  • The net income growth from the same quarter one year ago has exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 7.6% when compared to the same quarter one year prior, going from $698.82 million to $751.85 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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