Accenture - Final Thoughts

Ticker Symbol: ACN

Accenture - Final Thoughts

Accenture's share buyback program helped lower its effective tax rate last quarter, aiding in the company's bottom line outperformance. But top line results fell short and could face more external difficulties going forward. Competition and an irresolute economic outlook could serve to dent profits over the short-term.

Currency fluctuations will continue to play a role in the American and European shares. Q2 revenues were unfavorably impacted by currency vacillations as the U.S. dollar strengthened appreciably during the timeframe. Given short-term prospects for a bolstered greenback and long-term anticipation of rising inflationary pressures, Accenture's American shares will be facing an uphill battle in the coming months. 6 months to a year down the road, when expansionary monetary and fiscal policy catches up, expectations for a depreciating dollar will help artificially boost Accenture's U.S. shares.

Conversely, ACN has mostly sat out Wall Street's rally during March and April, helping from a near-term valuation standpoint. For investors with longer time horizons, KeyBank gave a bullish affirmation, upping the consulting firm from "hold" to "buy", citing long-term prospects and dominant market position.

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