📈 My Bullish View on Accenture (ACN)
Looking at the chart and the fundamentals, I believe Accenture has strong chances of a significant bullish move. Here’s why:
🔍 Technical Analysis / Patterns
A double bottom formation (“Bottom 1” and “Bottom 2”) suggests the price may have found solid support around these levels.
There’s a descending trendline acting as resistance: if the stock breaks above it, a new upward impulse could begin.
Volume has also sent interesting signals: a recent increase (as shown in the chart) indicates growing market interest in Accenture.
Based on these technical elements, the target price marked in the chart looks reasonable if a breakout occurs.
🔑 Fundamental Drivers Supporting the Bullish Potential
Here are recent factors that strengthen the case for Accenture’s growth:
Revenue and EPS Growth
In Q3 FY2025, revenues reached ~$17.7 billion, up 7% in local currency year over year.
Adjusted EPS rose by 12% YoY.
Expanding Margins
Operating margin improved by about 40 basis points compared to the same quarter last year.
Full-year operating margin outlook confirmed at around 15.6%. (Investing.com, Financial Modeling Prep)
Positive Guidance / Updated Estimates
Accenture expects 6–7% revenue growth in local currency for FY2025. (investor.accenture.comFull-year diluted EPS is projected between $12.77 and $12.89. (Investing.com)
Focus on AI / Reinvention
Accenture is restructuring its services into a new unit called “reinvention services”, better integrating consulting, technology, operations, and AI into a more scalable offering. (Business Insider)
The company announced it will train over 700,000 employees in the use of agentic AI technologies — a strong commitment to digital transformation, one of today’s leading trends. (The Economic Times)
Strategic Expansions / Acquisitions
Recently acquired Australian cybersecurity firm CyberCX, its largest-ever deal in the cyber sector. This strengthens Accenture’s positioning in a high-growth field (cybersecurity, defense, digital risk).
Valuation / Upside Potential
Some DCF analyses suggest the stock may be undervalued at current levels, with upside potential if the market begins rewarding growth and innovation investments (AI, security, etc.). (Simply Wall St)
Despite recent weak price performance, fundamentals remain solid, which could trigger a positive reaction once technical signals confirm. (Investing.com)