1D·

Seized the Opportunity: Follow-On Purchase of Accenture

$ACN (+1,86%)


1. Market Leader with a Massive Moat

Accenture isn’t just any consulting firm.

They’re often deeply embedded in:

IT systems,

transformations,

cloud projects,

ERP,

and operations.

Large corporations don’t switch such partners easily.


2. AI Could Help Rather Than Harm

The market is afraid:

“AI is replacing consulting.”

The counterargument:

Many companies don’t even know:

what AI to use,

how to restructure processes,

how to integrate data.

That’s exactly where Accenture makes its money.


3. Less risk than many software companies

Compared to:

Rocket Lab,

Quantum,

Nebius,

MSTR,

Accenture has:

profits,

cash flows,

dividends,

a stable balance sheet.


4. Historically strong compounder

Accenture hasn’t been a hype stock for many years.

But:

High revenue,

high profits,

high dividends,

share buybacks.

Many fortunes are built precisely with companies like this.


5. A Weak Phase Could Be an Opportunity

If the market fear is:

“IT spending is weak.”

and this normalizes in 2–3 years,

then market leaders often benefit disproportionately.


6. AI Valuation Without an AI Multiple

Many AI winners are trading at extremely high valuations.

The bull case is:

Accenture benefits from AI without being valued at 50–100x revenue.


7. Virtually No Survival Risk

A very important point, in my view

With Accenture, the question is rarely:

“Will the company survive?”

But rather:

“Will it grow 5% or 10%?”

That’s a different risk category.

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18 Comentários

$ACN
Always tag people—that way, it’s easier to find the post and you can check out the company right away :)


I also think consulting firms will be back on track in 2–3 years!
I work with consulting firms a lot myself, and here’s what I can say:
You always need consulting, no matter what the latest hype is.
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@trade_whisperer_aawib And even if you don't really need them, they'll still be hired :)
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I added 15 shares this week.
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Hey @Tomtom12,

Someone’s really taking a leap of faith today by jumping in headfirst to catch a falling knife! 😉 Kudos for the courage, but let’s set the romance aside for a moment and let the cold, hard data from the engine room do the talking.

Regarding your point that “AI could help”: Unfortunately, the reality today is exactly the opposite. Morgan Stanley didn’t slash the stock’s rating and cut the price target to $177 for no reason. Their latest CIO survey shows crystal clear: Companies are pouring massive amounts of money into AI, but in doing so, they’re slashing their traditional IT consulting budgets. This isn’t some fantasy for the future—it’s pure cannibalization happening right here, right now. That’s exactly why management today coldly slashed the full-year revenue forecast to a meager 3% to 4%.

But I absolutely agree with you on one point: There’s absolutely no question of the company’s survival here. Let’s run this through my filters without sugarcoating it after today’s crash:

* **Core Quality:** We saw 6% revenue growth in the last quarter paired with a solid operating margin of 17.0%. That gives us a score of 23. That’s rock-solid, but it’s no longer a growth rocket.
* **The cash flow machine:** This is where the fundamentals get really attractive. Accenture continues to expect up to $11.5 billion in free cash flow this year. Given the current market capitalization of around $96 billion following today’s brutal 16–19% plunge, that gives us a whopping 11% FCF yield! That’s extremely attractive and shows that this is a real cash cow.

**My cold, hard conclusion:**
Fundamentally, after today’s bloodbath, $ACN is almost a bargain at prices around 131 USD for stoic, A-side cash flow collectors. But from a technical analysis perspective? A complete disaster. The 50-day and 200-day EMAs have broken away miles above the current price, and the RSI is currently plowing its way—unblunted—toward the Earth’s core.

Anyone jumping in here today is catching a falling knife with their bare hands. You now have your shares in your portfolio at a discount, but for everyone else: For now, just wait stoically until the dust settles and the chart finds a solid bottom!

Greetings from the engine room,
Raketentoni 🚀
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@Raketentoni Germini says hi, but thanks 🫶😁
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@Raketentoni Thanks for your take on it. I can wait; for me, the opportunity presented by the current prices outweighs the risks. My strategy is on track, and I can buy more. It'll bounce back safely.
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@SunriseRanger That's right, it's just my prompt—it does the work for me 😬 I mean, those 30,000 characters have to be worth it 😂
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@Tomtom12 "The only things that are 'safe' are death and taxes 😉" but I'm keeping my fingers crossed for you—or as we say in Denmark: I'm crossing my fingers
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I'll see what happens in an hour and then I'll have a few myself. 2018 course😁
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Revenue forecast for the current year lowered; fewer new orders; AI concerns persist
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Why a 17% drop like this? What’s the explanation?
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@emppsb However they increased the amount for buybacks (slightly)
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@Entspontan_blog for me buybacks is one of the most important indicators 👌
That sums it up perfectly 👍🏻 The acquisitions in the IT security sector, in particular, are a plus. What is Palo Alto's market valuation, for example?
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Unbelievable price movement 🤡
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