Accenture Q1 Earnings Preview: Textbook Value Trap
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Oliver Rodzianko5.84K FollowersFollow5ShareSavePlay(7min)CommentsSummaryAccenture is a hold, as growth moderates and valuation offers limited alpha despite its recent price decline.FY25 saw 7% growth and record contracts, but FY26 guidance is only 2-5% with restructuring underway, dampening near-term upside.ACN's forward PEG is 33% above the sector median; despite the illusion of value, this is the "value trap" tell.With a $310 price target and 15% implied upside, I see no compelling re-rating catalyst; it's best to redeploy capital elsewhere pre-earnings.jmsilva/iStock via Getty Images Since my last Accenture (ACN) analysis, the stock has lost -22% in price. I issued a Hold rating at the time due to my recognition of low return prospects. Even though the investment is now structurally undervalued, I seeThis article was written byOliver Rodzianko5.84K FollowersFollowOliver Rodzianko is the Founder and CEO of Invictus Origin, managing the Invictus Hydra portfolio, a high-alpha strategy consistently outperforming the Nasdaq-100 with disciplined cash deployment during market dislocations.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You