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Why Accenture Is Poised to Keep Popping

By Brian D. Pacampara, CFA - Apr 18, 2013 at 11:14AM

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Market-trouncing returns could be written in this 4-Star.

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 (ACN 2.44%) 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

$49.9 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$28.3 billion

Management

CEO Pierre Nanterme (since 2011)

CFO Pamela Craig (since 2006)

Return on Capital (average, past 3 years)

49.8%

Cash/Debt

$5.6 billion / $29.0 thousand

Dividend Yield

2.1%

Competitors

IBM

Computer Sciences

Infosys

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

On CAPS, 95% of the 1,344 members who have rated Accenture believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, mcjc12, offered some insight into the Accenture bull case:

Having been an employee at Accenture for 2 years, it's a good company with a management that is focused on financial results. They should continue to prove profitable and at minimum meet analyst expectations. Their two biggest, most recent bets right now are on Cloud technologies, investing [$400M] on a full SAAS platform, and a JV with GE Aviation on a company called Taleris. Accenture will provide the system architecture/integration support to GEA's design capability. ...

I wouldn't expect this stock to make you big bucks, but will provide a staple to your buy/hold portfolio.  

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.  

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Stocks Mentioned

Accenture plc Stock Quote
Accenture plc
ACN
$283.39 (2.44%) $6.74
International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$131.17 (2.09%) $2.69
Infosys Limited Stock Quote
Infosys Limited
INFY
$18.89 (1.02%) $0.19
DXC Technology Stock Quote
DXC Technology
CSC

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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