Accenture: This Winner Just Keeps On Winning
Accenture's stock is outperforming the S&P 500 over the last year. Additionally, the stock is outperforming the broader market over the last 1-,3- and 5-year periods.
Shares are currently richly valued, but I believe that the company's growth potential is not fully baked into the stock price.
We hold a position in Accenture, and we plan to add shares on pullbacks.
Accenture's (ACN) stock has performed well over the last year, as ACN shares have outperformed the broader market by 6 percentage points over the last 12 months.
And while Accenture's valuation is definitely stretched at today's price (we will get to valuation later in the article), I believe that ACN shares are trading at a premium for a good reason - i.e., this company is best-of-breed in several mission-critical categories that are benefiting from the increasing digital transformation that is having a major impact on our economy. As such, Accenture should be viewed as a potential long-term winner.
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