- Accenture recently reported solid Q4 2019 operating results, but management's revenue guidance was not well received by the market.
- Shares are richly valued, but I believe that the company's growth potential is not fully baked into the stock price.
- I hold a position in Accenture, and I plan to add shares on pullbacks.
Accenture ($ACN) recently reported better-than-expected Q4 2019 earnings, but the stock finished the week under pressure. The broader market volatility is definitely coming into play, but analysts are also concerned about management's disappointing forward revenue guide.
However, let's not forget that ACN's shares are still up big so far in 2019 and outperforming the broader market by almost 18 percentage points.
There are company-specific risk factors that need to be considered, especially given the broader market uncertainty, but I believe that Accenture's management team has this global IT consulting and outsourcing company well positioned for the future. This unique company has great, long-term business prospects, and in my opinion, Accenture's growth profile should not be overlooked, even after factoring in management's disappointing revenue guidance.
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