Validea's Top Information Technology Stocks Based On Martin Zweig - 10/7/2024
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2024
0mins
Should l Buy ACN?
Source: NASDAQ.COM
Top Rated IT Stocks: Validea's Growth Investor model highlights Dell Technologies Inc. and Accenture plc as top-rated large-cap growth stocks in the IT sector, both scoring 77% based on their fundamentals and valuations, indicating strong interest from the investment strategy.
Other Notable Stocks: Taiwan Semiconductor Manufacturing Co., NVIDIA Corp, and First Solar Inc. are also recognized as large-cap growth stocks, with ratings of 69%, reflecting varying levels of interest according to the same investment strategy criteria.
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Analyst Views on ACN
Wall Street analysts forecast ACN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACN is 295.67 USD with a low forecast of 251.00 USD and a high forecast of 330.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
10 Buy
6 Hold
0 Sell
Moderate Buy
Current: 241.210
Low
251.00
Averages
295.67
High
330.00
Current: 241.210
Low
251.00
Averages
295.67
High
330.00
About ACN
Accenture plc is a global professional services company. It is engaged in providing a range of services and solutions across strategy and consulting, technology, operations, Industry X and Song. Its services include application services, artificial intelligence, automation, business process outsourcing, business strategy, change management, cloud, customer experience, data and analytics, ecosystem partners, finance consulting, Industry X, infrastructure, marketing, mergers and acquisitions, operating models, security, supply chain management, sustainability, technology consulting, technology innovation, and zero-based budgeting (ZBB). It specializes in the SAP business technology platform that designs digital products and experiences for enterprise customers, including custom portals and Web solutions and mobile applications. It provides clients with quantitative and qualitative risk management and compliance services. It specializes in advisory, management services and cybersecurity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UBS Names Accenture a Top Pick Amid AI Growth
- Investment Rating Upgrade: UBS has designated Accenture (ACN) as a Top Pick, with analyst Kevin McVeigh highlighting the potential of generative AI and strong alliances (approximately 60% of revenue) to drive revenue and margin growth.
- Cloud Computing Advantage: Accenture's cloud business, which accounts for over 50% of its revenue, is expected to continue benefiting from AI innovations as legacy systems are revamped to leverage AI capabilities, enhancing its market competitiveness.
- Generative AI Momentum: The momentum of generative AI, contributing around 10% of revenue, is anticipated to accelerate as companies transition to multi-year implementations, presenting long-term revenue growth opportunities for Accenture.
- Optimistic Industry Outlook: McVeigh notes that IT spending is expected to stabilize in 2026, with generative AI reshaping infrastructure and cloud migration; despite challenges in employment and rapid transformation, companies that can swiftly adjust strategies are poised for outsized growth.
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- Tariff Reduction Impact: The White House's announcement to cut India's import tariff from 25% to 18% is expected to enhance trade relations between the two countries, driving up stock prices for IT consulting firms, particularly those with significant operations in India like Accenture and Infosys.
- Stock Performance: Following this news, Accenture's stock rose by 1%, Infosys increased by 4%, and Wipro surged by 7%, reflecting market optimism regarding the prospects of the Indian IT sector.
- Strategic Cooperation Commitment: As part of the agreement, India committed to purchasing more American goods and ceasing Russian oil imports, which is viewed as a potential measure to alleviate the war in Ukraine, further solidifying U.S.-India economic ties.
- Market Reaction: In addition to IT consulting firms, manufacturing stocks like Apple also saw a 2% increase, indicating a broad positive market response to the improvement in U.S.-India trade relations, which could stimulate growth across multiple sectors.
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Participating Companies: Several companies, including Accenture, Acentra Health, and Deloitte, are voluntarily participating in a collaborative initiative.
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- Technical Analysis Pressure: Currently, Palantir's stock is trading 7.8% below its 20-day simple moving average and 9.6% below its 100-day average, suggesting short-term struggles, even as shares have increased by 100.40% over the past year.
- Earnings Report Outlook: Investors are looking forward to the earnings report on February 2, with an EPS estimate of $0.21 and revenue expected to reach $1.34 billion, indicating potential for significant revenue growth.
- Analyst Rating Changes: The stock carries a Hold rating with an average price target of $163.08, and recent upgrades from analysts reflect a more optimistic outlook for Palantir's future performance.
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- Dividend Stock Recommendation: Accenture has been named one of the 15 best S&P 500 dividend stocks for 2026, highlighting its appeal for stable returns and potentially attracting more long-term investors.
- Price Target Increase: Wells Fargo analyst raised Accenture's price target from $251 to $275 while maintaining an Equal Weight rating, indicating confidence in its future performance amid a stable demand backdrop for 2026.
- AI-Driven Growth: The analyst noted that AI is expected to be a net tailwind for Services revenues, with growth remaining stable if discretionary spending improves, further enhancing Accenture's competitive position in the market.
- Acquisition of Faculty: Accenture announced the acquisition of UK-based AI services company Faculty, aimed at strengthening its ability to help clients reinvent core business processes using secure AI solutions, integrating over 400 AI professionals to enhance client service capabilities.
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- Merger Controversy: Senator Elizabeth Warren criticized President Trump's involvement in the Netflix and Warner Bros. merger after he disclosed over $1 million in investments tied to the deal, raising concerns about potential conflicts of interest and regulatory scrutiny.
- Chip Industry Protection: South Korea plans to negotiate with Washington to safeguard its memory chip industry following a 25% tariff on advanced AI chips imposed by the Trump administration, which could disrupt the global semiconductor supply chain and impact South Korea's economic stability.
- TikTok Compliance: TikTok has secured its future in the U.S. by finalizing a deal with its parent company ByteDance to create a majority American-owned joint venture aimed at addressing national security concerns and complying with U.S. laws, ensuring its continued operation in the U.S. market.
- Banking Resistance to Crypto Legislation: Eric Trump stated that major U.S. banks are actively resisting cryptocurrency legislation, viewing it as a threat to their long-standing monopoly over the financial system, which could impact future financial innovation and market competition.
See More
UBS Names Accenture a Top Pick Amid AI Growth
- Investment Rating Upgrade: UBS has designated Accenture (ACN) as a Top Pick, with analyst Kevin McVeigh highlighting the potential of generative AI and strong alliances (approximately 60% of revenue) to drive revenue and margin growth.
- Cloud Computing Advantage: Accenture's cloud business, which accounts for over 50% of its revenue, is expected to continue benefiting from AI innovations as legacy systems are revamped to leverage AI capabilities, enhancing its market competitiveness.
- Generative AI Momentum: The momentum of generative AI, contributing around 10% of revenue, is anticipated to accelerate as companies transition to multi-year implementations, presenting long-term revenue growth opportunities for Accenture.
- Optimistic Industry Outlook: McVeigh notes that IT spending is expected to stabilize in 2026, with generative AI reshaping infrastructure and cloud migration; despite challenges in employment and rapid transformation, companies that can swiftly adjust strategies are poised for outsized growth.
See More
IT Consulting Stocks Rise as India Cuts Tariffs on U.S. Imports
- Tariff Reduction Impact: The White House's announcement to cut India's import tariff from 25% to 18% is expected to enhance trade relations between the two countries, driving up stock prices for IT consulting firms, particularly those with significant operations in India like Accenture and Infosys.
- Stock Performance: Following this news, Accenture's stock rose by 1%, Infosys increased by 4%, and Wipro surged by 7%, reflecting market optimism regarding the prospects of the Indian IT sector.
- Strategic Cooperation Commitment: As part of the agreement, India committed to purchasing more American goods and ceasing Russian oil imports, which is viewed as a potential measure to alleviate the war in Ukraine, further solidifying U.S.-India economic ties.
- Market Reaction: In addition to IT consulting firms, manufacturing stocks like Apple also saw a 2% increase, indicating a broad positive market response to the improvement in U.S.-India trade relations, which could stimulate growth across multiple sectors.
See More
CMS Reports That Companies Choosing to Participate Include Accenture, Acentra Health, Conduent, GDIT, Deloitte, Gainwell, Maximus, and Curam by Merative
Participating Companies: Several companies, including Accenture, Acentra Health, and Deloitte, are voluntarily participating in a collaborative initiative.
Focus Areas: The initiative aims to address key health and wellness issues, with a focus on improving outcomes and enhancing community health.
See More
Palantir Stock Declines Amid Mixed Market Sentiment
- Market Underperformance: Despite a 0.6% rise in the tech sector, Palantir's stock fell 2.95%, reflecting mixed investor sentiment and indicating caution among market participants regarding the stock's outlook.
- Technical Analysis Pressure: Currently, Palantir's stock is trading 7.8% below its 20-day simple moving average and 9.6% below its 100-day average, suggesting short-term struggles, even as shares have increased by 100.40% over the past year.
- Earnings Report Outlook: Investors are looking forward to the earnings report on February 2, with an EPS estimate of $0.21 and revenue expected to reach $1.34 billion, indicating potential for significant revenue growth.
- Analyst Rating Changes: The stock carries a Hold rating with an average price target of $163.08, and recent upgrades from analysts reflect a more optimistic outlook for Palantir's future performance.
See More
Accenture Named Among 15 Best S&P 500 Dividend Stocks for 2026
- Dividend Stock Recommendation: Accenture has been named one of the 15 best S&P 500 dividend stocks for 2026, highlighting its appeal for stable returns and potentially attracting more long-term investors.
- Price Target Increase: Wells Fargo analyst raised Accenture's price target from $251 to $275 while maintaining an Equal Weight rating, indicating confidence in its future performance amid a stable demand backdrop for 2026.
- AI-Driven Growth: The analyst noted that AI is expected to be a net tailwind for Services revenues, with growth remaining stable if discretionary spending improves, further enhancing Accenture's competitive position in the market.
- Acquisition of Faculty: Accenture announced the acquisition of UK-based AI services company Faculty, aimed at strengthening its ability to help clients reinvent core business processes using secure AI solutions, integrating over 400 AI professionals to enhance client service capabilities.
See More
Sen. Elizabeth Warren Critiques Trump's $1M Investment Ties to Netflix Merger
- Merger Controversy: Senator Elizabeth Warren criticized President Trump's involvement in the Netflix and Warner Bros. merger after he disclosed over $1 million in investments tied to the deal, raising concerns about potential conflicts of interest and regulatory scrutiny.
- Chip Industry Protection: South Korea plans to negotiate with Washington to safeguard its memory chip industry following a 25% tariff on advanced AI chips imposed by the Trump administration, which could disrupt the global semiconductor supply chain and impact South Korea's economic stability.
- TikTok Compliance: TikTok has secured its future in the U.S. by finalizing a deal with its parent company ByteDance to create a majority American-owned joint venture aimed at addressing national security concerns and complying with U.S. laws, ensuring its continued operation in the U.S. market.
- Banking Resistance to Crypto Legislation: Eric Trump stated that major U.S. banks are actively resisting cryptocurrency legislation, viewing it as a threat to their long-standing monopoly over the financial system, which could impact future financial innovation and market competition.
See More
