Shareholder returns and stock trends
Accenture (ACN) generated investor returns of 22.9% in the trailing-12-month period and 5.6% in the trailing-one-month period. By comparison, the company generated returns of 19.5% in 2015 and 16.9% YTD (year-to-date). The company’s share price rose 8% in the trailing-five-day period.
Now let’s look at returns for peer companies in the IT consulting subsector. Returns for Cognizant (CTSH), IBM (IBM), and Infosys (INFY), an India-based (INDA) company, were -24.6%, 9.9%, and -16.5%, respectively, in the trailing-12-month period.
On September 30, 2016, Accenture closed the trading day at $122.17. Based on this figure, here’s how the company’s stock is faring in terms of its moving averages:
- 6.2% above its 100-day moving average of $115.03
- 7.5% above its 50-day moving average of $113.69
- 7.5% above its 20-day moving average of $133.62
MACD and RSI
A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. Accenture’s 14-day MACD is 0.19. This positive figure indicates an upward trading trend.
The company’s 14-day RSI (relative strength index) is 74, which shows that the stock is overbought. Generally, if a company’s RSI is above 70, its stock is considered overbought, while an RSI figure below 30 suggests that its stock has been oversold.
Of the 31 analysts covering Accenture stock, 16 have issued a “buy” recommendation and 15 have recommended a “hold.” The analyst stock price target for Accenture is $130, with a median target estimate of $129.5.
Given these figures, Accenture is trading at a discount of 6% with respect to the median analyst price target.