Strong Upward Pre-Market Activity For 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.

Trade-Ideas LLC identified Accenture ( ACN) as a pre-market leader 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 $221.6 million.
  • ACN traded 23,984 shares today in the pre-market hours as of 9:24 AM.
  • ACN is up 3.7% today from yesterday's close.

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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 7 rate it a hold.

The average volume for Accenture has been 2.1 million shares per day over the past 30 days. Accenture has a market cap of $61.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.14 and a short float of 2% with 5.73 days to cover. Shares are up 10% 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, good cash flow from operations, solid stock price performance and increase in net income. 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 22.5%. Since the same quarter one year prior, revenues slightly increased by 4.8%. 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 0.00 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 1.27, which illustrates the ability to avoid short-term cash problems.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 2.9% when compared to the same quarter one year prior, going from $671.30 million to $690.73 million.
  • Net operating cash flow has slightly increased to $301.29 million or 3.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.72%.

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