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Why Accenture Is Poised to Bounce Back

Monday - 7/1/2013, 1:13pm  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global consulting giant Accenture has earned a respected four-star ranking.

With that in mind, let's take a closer look at Accenture and see what CAPS investors are saying about the stock right now.

Accenture facts

Headquarters (founded)

Dublin, Ireland (1995)

Market Cap

$46.8 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$28.2 billion

Management

CEO Pierre Nanterme (since 2011)

CFO Pamela Craig (since 2006)

Return on Equity (average, past 3 years)

64.8%

Cash/Debt

$5.9 billion / $0

Dividend Yield

2.3%

Competitors

IBM

Computer Sciences

Infosys

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,350 members who have rated Accenture believe the stock will outperform the S&P 500 going forward.   

Just last week, fellow Fool Simon Erickson (TMFInnovator) tapped the company's recent earnings miss as an attractive buy-in opportunity:

Accenture missed Rev guidance, largely due to weakness in Brazil and Europe and fewer big projects, which caused shares to drop 11%. I'm not sure why this miss was so shocking, really. The current market uncertainty is influencing companies' IT/consulting spend, which effected ACN's short-term results.

Looking bigger picture though, ACN is in a great position to outperform:
-Their focus on data analytics and cloud computing are fast-growing markets to be competing in.
-Their reputation is phenomenal. They focus is on long-term relationship building, which allows for recurring revenues and a sticky customer base. ...
-They are one of the few consulting firms to also offer to deploy IT and hardware solutions. ...
-They have an asset-light model that allows them to return profits to shareholders. They have tripled their annual dividend in the last five years.

Accenture has outperformed the market in 8 of the last 10 years. I would expect them to do more of the same in the future.

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This article was originally published as Why Accenture Is Poised to Bounce Backon Fool.com

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