Barron’s Analyst Robin Goldwyn Blumenthal recommended shares of
Accenture (ACN) in this week’s Barron’s:
a. The company, a leader in management consulting and
technology outsourcing, profits handsomely by helping big corporations change
continually to meet the demands of their markets.Lately, the change that’s
often required is downsizing — layoffs and other cost cutting. Grim as that may
be for the companies and their workers, it’s hardly bad news for Accenture: It
has been posting double-digit growth in revenues and earnings ever since the
credit crunch began last year.
b. Accenture trades at just under 14 times estimated
earnings for the coming 12 month; there is a pristine balance sheet and cash
and short-term investments of an impressive $3.4 billion.
c. Accenture serves more than 90% of the Fortune Global 100,
offering both strategic advice and hands-on assistance.
d. In late June, Accenture once again raised its outlook for
revenue growth in the fiscal year ending Aug. 31, to the upper end of its previously
announced 9%-12% guidance in local currency.
Conclusion:
Accenture could maintain double-digit growth in revenues and earnings as
companies seek help in cutting costs and becoming more efficient. With a
pristine balance sheet and impressive holdings of cash and short-term
investments, Accenture may be worth somewhere in the high 40’s, or 20% above
its recent price.
Track Robin’s picks at:
http://www.trackthepros.com/categories.php?category_id=528