Barron's Gets Bullish on Accenture (ACN) But Traders Selling
Despite a positive article in Barron's over the weekend, shares of Accenture (NYSE: ACN) are giving back Friday's gains. The company reported its Q3 earnings on Thursday night, boosting shares by nearly 7% on Friday. Traders are taking profits today, and the stock is down about 1% to $33.37.
The bullish Barron's article pointed out that the consulting and outsourcing company seems to be ahead of the curve: by March, Accenture had already laid off workers and warned investors of lower profits. Accenture recently reported better-than-expected new bookings, a metric which is often a leading indicator for earnings. Also, management has beefed up operations in the China and Latin America regions, offsetting weakness in the Americas and Europe.
Looking at valuation, Barron's notes that Accenture is currently trading around 12.2x FY10 estimates, well below the 15.9x multiple for the IT consulting and services group, and also near the low-end of its historical range.
Create E-mail AlertRelated Categories
Corporate NewsInsiders' Blog
Stocks Mentioned
+0.34Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
