Copyright Forbes
Here is why we believe Accenture (ACN) stock warrants attention as a value investment. Currently, it is trading almost 37% lower than its high from the past year and at a PS multiple that falls below the average over the last 3 years. Nonetheless, it is experiencing growth, albeit modest, and possesses strong profit margins alongside its favorable valuation. Accenture’s strategic shift toward generative and agentic AI is fundamentally altering its growth trajectory, with GenAI revenue projected to triple to $2.7 billion in FY2025 and bookings nearly doubling to $5.9 billion. This bold $3 billion multi-year investment and recent acquisitions, such as Decho from October, are driving significant demand for enterprise digital transformation. In spite of a tough macroeconomic climate, the company reported revenue of $69.7 billion in FY2025 and $80.6 billion in bookings, reflecting continued expansion in market share for its high-value services. Let’s discuss the numbers Revenue Growth: 7.4% LTM and 4.2% average over the last 3 years. While this growth is low, it remains a play on margin and value. Strong Margin: Approximately 14.4% average operating margin over the past 3 years. No Major Margin Shock: Accenture has managed to avoid any significant margin collapse in the past 12 months. Modest Valuation: Regardless of the encouraging fundamentals, ACN stock is trading at a PE multiple of 19.9. To provide some background, Accenture offers strategy, consulting, technology, and operations services, which include application modernization, agile transformation, AI, data management, intelligent automation, and talent and organizational consulting. Asset allocation represents a more strategic approach than picking individual stocks. The asset allocation strategies implemented by Trefis’ wealth management partner in Boston generated positive returns during the 2008-09 period when the S&P fell by more than 40%. Currently, Trefis’ High Quality Portfolio is a component of this strategy. MORE FOR YOU *LTM: Last Twelve Months But do these metrics reflect the complete picture? Read Buy or Sell ACN Stock to determine if Accenture maintains a competitive edge that withstands scrutiny. Stocks Like These Can Outperform. Here Is the Data Below are figures for stocks with the same selection strategy applied between 12/31/2016 and 6/30/2025. Average forward returns of 12.7% and 25.8% for 6-month and 12-month periods, respectively Win rate (the percentage of picks yielding positive returns) exceeding 70% for both the 6-month and 12-month durations Strategy shows consistency across various market cycles. But Consider the Risks However, Accenture is not impervious to sharp declines. The stock dropped approximately 38% during the Global Financial Crisis, 40% during the inflation shock of 2022, and 33% amid the Covid pandemic. Furthermore, the correction in 2018 resulted in a 23% reduction. Strong fundamentals are significant, but even robust stocks such as ACN can experience substantial losses when volatility arises in the market. Yet, the risk extends beyond major market downturns. Stocks can decline even in favorable market conditions—consider occurrences such as earnings releases, business updates, and changes in outlook. Read ACN Dip Buyer Analyses to discover how the stock has rebounded from sudden downturns in the past.
