Today we are going to look at Accenture (ACN) to see what should be done with the stock, buy or sell, or do nothing? We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock. Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Accenture in the next 72 hours and do not hold any positions in Accenture (ACN).
Accenture: What should be done with the stock? Buy or sell?
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does Accenture, Inc meet these 7 markers?
- Market Cap: 119.09B (YES)
- EPS growth past 5 years: 6.00% (YES)
- P/E: 25.75 YES
- EPS growth next 5 years: 8.78% (YES)
- Sales growth past 5 years: 6.60% (NO)
- Debt/Equity: 0 (YES)
- Sales growth qtr over qtr: 5.50% (YES)
I used Finviz.com for the fundamental analysis screener. With ACN hitting 6 of 7 of the markers it just barely falls short of being considered a growth stock. This is really close to being the type of stocks I look for to trade. Before I would trade just about any stock that fit my technical parameters. Unfortunately, I have had to learn the hard way that the fundamentals of a stock are just as important (if not more) than the technical setups.
Technical Analysis for Accenture (ACN)
Accenture (ACN) is currently in a Reverse Lightning Trade long setup. Price recently broke out from the pivot point high and the current target is the pink line at $186.50. There is a gap below it which is something to keep in mind. The reason is that gaps come back and get filled around 90% of the time.
The other setup I see is a 38-127 long trade setup. When you have a long setup at the same time for a Reverse Lightning Trade and a 38-127 trade then that is a VERY bullish sign. The current exit is the pink line around $197.00.
Overall the two setups I see compliment each other really well so this could very well be another run up for Accenture until those targets are hit.
Popular Links
Here are a couple of links if you are looking at how I view the market and some trade setups. You can create your own trading style and setups. Quit paying losing traders to teach you. The only thing they teach is how to lose money.
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