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Accenture signage is being pictured in Warsaw, Poland, on August 7, 2024. (Photo by Aleksander Kalka/NurPhoto via Getty Images) NurPhoto via Getty Images In a market driven by hype and momentum, Accenture (ACN) stands out as a steady performer with solid fundamentals and a discounted valuation — proof that “boring” can still be beautiful. Here is why we believe ACN stock merits attention as a value investment. It is currently priced about 36% lower than its 1-year peak and is trading at a PS multiple that is less than the average over the past 3 years. Nevertheless, it is growing—albeit slowly—and boasts impressive margins alongside its low valuation. Revenue Growth: 7.4% LTM and 4.2% average over the last 3 years. Although growth is modest, this represents a margin and value opportunity. Strong Margin: Approximately 14.4% average operating margin over 3 years. No Major Margin Shock: Accenture has managed to prevent any significant margin decline in the past 12 months. Modest Valuation: Despite positive fundamentals, ACN stock is traded at a PE multiple of 20.3. As a brief overview, Accenture offers strategy, consulting, technology, and operations services, which includes application modernization, agile transformation, AI, data management, intelligent automation, and talent and organizational consulting. Love the ACN stock? Excellent. But don’t become too attached. Stocks can plummet. High Quality Portfolio helps you navigate that risk. Financial metrics MORE FOR YOU Do these figures provide the complete picture? Read Buy or Sell ACN Stock to determine if Accenture continues to maintain an advantage that withstands scrutiny. Stocks Like These Can Outperform. Here Is Data Below are statistics for stocks with the same selection strategy applied between 12/31/2016 and 6/30/2025. Average returns over the next 6 months and 12 months of 12.7% and 25.8%, respectively. Win rate (percentage of selections yielding positive returns) exceeding 70% for both 6-month and 12-month durations. Not overly reliant on market downturns. Even during non-crash periods, this strategy has an average 12-month return of nearly 20% with a 67% win rate. But Consider The Risk That being said, Accenture is not free from significant declines. It decreased by approximately 38% during the Global Financial Crisis, 40% amid the 2022 inflation impact, and 33% throughout the Covid pandemic. The 2018 correction also resulted in a 23% drop. Strong fundamentals are important, but even resilient stocks like ACN can experience notable declines during market turbulence. However, the risk is not confined to substantial market crashes. Stocks can decline even in favorable market conditions—consider events such as earnings reports, business news, or changes in outlook. Read ACN Dip Buyer Analyses to see how the stock has bounced back from steep declines in the past. The Trefis High Quality (HQ) Portfolio, featuring a collection of 30 stocks, has a history of comfortably surpassing its benchmark which includes all three indices—the S&P 500, S&P mid-cap, and Russell 2000. What accounts for this? On the whole, HQ Portfolio stocks have offered superior returns with less risk compared to the benchmark index; it is a smoother ride, as illustrated in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
